In the first quarter of last year, due to the impact of the epidemic, a large number of new users poured into Netflix for a while, allowing Netflix to record an unprecedented 16 million new users in a single season. Now a year later, although the epidemic is still not over, the number of new Netflix users has fallen back to a more “normal” level. During the same period, only 3.98 million new users have been added, which is slightly less than 2018/2019. There may be many reasons behind this. One part is that Netflix’s 208 million total subscribers itself means that it will be more and more difficult to add new subscribers, while the other includes the launch of Disney+, HBO Max and other competitors. Users will be apportioned. In addition, the new crown epidemic has also caused difficulties in the production of Netflix’s new dramas, which made the content at the beginning of the year slightly weak, which may also be one of the reasons behind it.
However, although the increase in the number of users has slowed down, Netflix has made no less money. In the first quarter of 2020, Netflix’s net profit was as high as 1.7 billion US dollars, compared with the full-year net profit of only 1.87 billion US dollars.
In the financial report, Netflix also explained two topics that have attracted more attention recently. First of all, it is about sharing passwords. For this, CEO Reed Hastings stated that Netflix “will not do things that make customers feel that the screws are tightened.” Regarding whether it will expand into the game field, COO Greg Peters said that Netflix has actually launched games as a part of licensing and commercialization, and believes that games are undoubtedly an important part of future entertainment, so the future can be used in this part. Expect more investment.