The Corona-crisis has brought to the business of the video service, Netflix, a dramatic thrust, but this has proved to be a very short-term phenomenon out. As the company reported on Thursday after market close, it has gained in the past three months as many new subscribers as never before in this period of time, but at the end of the quarter, has slowed the growth significantly. Therefore, Netflix is now also a very cautious forecast for the third quarter.
economic correspondent in New York.F. A. Z. Twitter
The stock market reacted disappointed, in after-hours trading, the share price fell temporarily by more than ten percent. The stock had previously gained since the beginning of the year, more than 40 percent of their value.
more Careful look at the Rest of the year
in his will, Netflix has to pay to its customers in the second quarter to 10.1 million to 193 million and was thus significantly above its three months ago, given a forecast of 7.5 million new subscribers. In June of this growth, however, came almost completely to a Halt. In a letter to shareholders stated: "Now, as consumers overcome the initial shock of Covid, and the social restrictions is the growth slower." The one with the Corona-crisis-related surge in demand have ensured that in the first two quarters of this year, future growth in preference to had been. Careful Netflix shows now, with a view to the Rest of the year. For the third quarter of 2.5 million new customers will be predicted. That would be significantly less than in the comparable period in 2019.F. A. Z.-Newsletter "Coronavirus"
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The slowdown is not entirely surprising. Already at the presentation of the Figures for the first quarter, when nearly 16 million new customers were added, and warned Netflix, growth is likely to subside, "if the stop locked in his home." It is difficult to assess the extent to which will make the people after the easing of exit restrictions, a "TV break". The company has won in the first two quarters of this year, almost as many new customers as in the entire year of 2019.
Netflix announced on Thursday changes in its top management: Ted Sarandos will now be Co-Chairman of the Board in addition to co-founder Reed Hastings. He was previously Chief Content Officer for the content of the company responsible and to keep these Items more in addition. He is regarded for some time as the right Hand of Hastings and has driven forward the strategy of Netflix to focus more on the production of its own television series and films. He is the main man of the company to the creative scene in Hollywood.Updated Date: 16 July 2020, 22:19