After recording significant growth driven by the covid-19 pandemic, Netflix showed results below the target set for the third quarter of 2020, which ended last month.
Between July and September, the streaming platform acquired 2.2 million new customers. Netflix’s projections, however, indicated growth of 2.5 million. In spite of this, sales remained current, with revenues reaching US $ 6.44 billion and net profits of US $ 790 million.
Advantage over competition
In the early months of the pandemic, the platform had a major advantage over its rivals: content almost ready. This allowed for a constant flow of new releases, despite the company’s adoption of remote work.
The biggest challenge now is to maintain public attention and growth, after all this material may start to run out. With the studios closed, it will be challenging to produce content for the platform. Without recent releases, new subscribers will not arrive.
More releases in 2021
Netflix, however, disagrees with market expectations. According to the platform’s projections, the launches for the current year will be surpassed by those for 2021 in all quarters.
To this end, the company has gradually resumed production of some of its most established titles, such as Stranger Things and The Witcher. By the end of 2020, he expects to complete 150 productions, but recognizes that the current scenario is unpredictable and can affect these goals.
However, even if it reaches all these projections, it is unlikely that Netflix will repeat the dizzying growth caused by the quarantine and the intense demand for entertainment by the public.