Streaming service Netflix last week announced that it already has more than 200 million subscribers as it continues to use a low-cost approach to overeating.
The digital industry flourished during the coronavirus pandemic, and web streaming giant Netflix also received a significant boost to attract more subscribers than expected, leading the way over competing streaming services such as Amazon Prime Video, HBO Max, HBO Now, Hulu and Apple TV + , Disney + and many more.
The quarterly revenue update found that TV streaming leader Netflix had around 8.5 million paying subscribers on its system to reach 203 million subscribers due to the recently increased subscription prices.
Netflix chief financial officer Spencer Neumann said Covid-19 revenue calls had accelerated this major shift from linear entertainment to streaming.
The company’s cash flow is so high that it no longer borrows money to fund its operations, and according to the letter to investors, the company is considering buying back shares.
Post-release, the value of Netflix’s stock in after-sales retail has increased by more than 12 percent.
Revenues fell to $ 542 million in the fourth quarter from $ 587 million in 2019. Even so, total sales increased 21.5 percent from the previous quarter to $ 6.6 billion.
According to sales reports, Netflix added a record 37 million paid memberships for the entire year.
“We are very grateful to have given our members around the world the opportunity to get out of these difficult times, socialize and have fun while continuing to grow our business,” said Netflix in a letter to investors.
Membership fees increased 23% in the last quarter of 2020 compared to the same period last year. However, according to the Silicon Valley company, the average income of its members is the same.
Meanwhile, Netflix raised prices slightly in the US late last year, with most of its new subscribers coming from outside North America, about 83 percent, according to the sales report.