Netflix, which exceeded the 200 million subscriber threshold with the effect of the Covid-19 epidemic last year, continues its success.
Netflix announced that it reached 200 million subscribers in 2020 with a letter sent to its investors. In this sense, the streaming service gained 8.5 million new subscribers in the last quarter of last year alone, and 37 million more in the whole year. It is also underlined that this is a record for the company. It is stated that the biggest increase occurred in March, when the countries started to close due to the Covid-19 outbreak.
Netflix notes that the revenues it generates mean that it no longer needs “raising external financing for daily operations”. For 2021, free cash flow is expected to return to breakeven. However, the company will investigate repayments to shareholders through share repurchases, as between 2007 and 2011, as it generated excess cash.
The company shares that with the increase of new broadcast providers, its forward-looking strategy is simple. Netflix wants to be the first choice and improve its platform every day to better satisfy its members.
According to Google data, 90 percent of the top 10 movies for TV shows are on Netflix, but only 20 percent of these top 10 movies are on the platform. The company heralds that it will release a new original movie every week throughout 2021 to increase the appeal of those who prefer movies.