Netflix exceeds 200 million paying subscribers worldwide

Netflix has consolidated its position as the leader in paid video streaming with nearly 204 million subscribers worldwide at the end of 2020, after a favorable year marked by the pandemic and lockdowns, and despite increased competition and a recent increase in its prices.

The platform announced on Tuesday that it had garnered 37 million additional subscriptions over the past year, including 8.5 million in the fourth quarter, a sign that the platform continues to gain market share even if not at the same rate. than last spring.

And she does not intend to stop there.

"The United States is the market where we have the best penetration, but Netflix represents only 10% of the time spent in front of television", underlined Reed Hastings, the boss of the group, during a conference with the analysts.

In two years, Netflix has nearly doubled its number of subscribers - from 111 million in early 2018 to 203.7 million in late 2020 - and average subscription revenue has grown from $ 9.88 to $ 11.02, the report said. company.

The service has also allowed its prices to rise in Canada and then in the United States last quarter, despite competition from free or much cheaper players, such as Disney +.

"We are very close to achieving positive cash flow," the group announced in its earnings release.

"We believe that we no longer need external investments to finance our day-to-day operations".

"Stimulating" competition

Netflix stock jumped more than 10% on Wall Street during electronic trading after the stock market closed.

In the fourth quarter of 2020, the California-based company posted net income of $ 542 million - $ 40 million lower than a year ago - on revenue of $ 6.6 billion, up $ 21. 5%.

In 2020, like many other tech giants, the platform has benefited greatly from travel restrictions imposed in various countries to fight the pandemic.

But the year will also remain the year of the sector's maturation, with the arrival of many new direct competitors who have also benefited from confinement, from Apple TV + to HBO Max, and especially Disney + which has exceeded 85 million subscribers in a year.

“It's very impressive what Disney did, the execution was impeccable,” said Reed Hastings.

"It's great for the whole world that Disney and Netflix are competing. (...). We're all in the cartoons, we're going to try to catch up with them and even pass them on this ground, while keeping our lead in entertainment in general. It's very stimulating. "

The company also recalled that it felt just as much in competition with traditional television (called "linear"), video games and social networks such as YouTube, TikTok or Twitch.

"We continue to work hard to increase our share of screen time against these major rivals," the statement said.

"More than 70" new films expected on the platform in 2021

For 2021, the platform has planned no less than 70 films with many stars, from Gal Gadot (

) to Dwayne "The Rock" Johnson (

or

), including Regina King, Adrien Brody, Meryl Streep, Sandra Bullock, Octavia Spencer, Jeremy Irons, but also Leonardo DiCaprio or Jennifer Lawrence.

"It will certainly be more than 70", assured Ted Sarandos, co-executive director of the group, during the conference.

"The appetite is there, and we have a global audience with very diverse tastes."

Over 80% of additional subscriptions purchased in 2020 were purchased outside of North America.

"Netflix is ​​ending its best year and is expected to grow further in 2021, with major releases already planned," commented Eric Haggstrom, analyst at eMarketer.

"So far, he's the big winner in streaming battles."

For the current first quarter, Netflix expects to gain 6 million new subscribers.

"The Covid-19 has accelerated the transition from linear television to streaming," noted Spencer Neumann, group chief financial officer.

"So the long term looks good."