Netflix ended 2020 as its biggest year yet with the streaming giant searing past 200 million subscribers. The company gained new subscribers than expected and says it no longer needs to borrow cash to fund its operations.
Netflix, the leading paid streaming service in the world, added 8.51 million new paid net subscribers in Q4 2020 on its way to a record-breaking 36.6 million paying customers in 2020. This was partly due to the pandemic as people spent more time at home more than ever and largely due to its hit shows “The Queen’s Gambit” and “Bridgerton.” The newly added subscribers surpassed Netflix’s own projection and the 6.06 million forecasted by Wall Street.
The Queen’s Gambit gained huge popularity among viewers with a record-setting 62 million households’ viewership within its first 28 days, making it Netflix’s biggest scripted limited series to date. Netflix also projected 63 million households would have seen Bridgerton within its first four weeks and 44 million households would have watched We Can Be Heroes within the same period of time.
With $8.2 billion in cash and a flowing credit line in its earnings report, Netflix is telling its shareholders that “we no longer have a need to raise external financing for our day-to-day operations.”
Netflix expects to add 6 million new paid subscribers in Q1 2020 against analyst’s prediction of 7.45 million. Chief Financial Officer, Spencer Neumann warned investors and analysts of a “pull-forward” effect on Tuesday which is expected to affect growth in 2021 due to the streaming service experienced in the first six months of 2020 gaining a total of 25.9 million paid subscribers.
Netflix is expected to still be the streaming king in 2021 but it faces a strong battle as likes of Disney Plus, HBO Max and Amazon Prime Video continues to launch new shows.