Netflix Four things which have driven its success
Netflix got a big boost from the pandemic last year, as demand for streaming movies and television soared.
On Thursday, it shared its full-year results with investors and its plans for next year.
Here’s what we learned.
1. Netflix is making a lot of money
The company now has more than 200 million paid members, up more than 30% from 2019. About 37 million people subscribed last year, including 8.5 million in the last three months alone.
The additions – as well as price increases in the US, UK and elsewhere – helped revenue rise 24% in the most recent quarter to $6.6bn (£4.8bn), while profit hit $542m. For the year, it reported nearly $25bn in revenue and almost $2.8bn in profit.
Netflix, which has taken on major debt to fuel its expansion, said the gains meant it expects to be able to stop borrowing to finance its operations and is considering using excess cash to buy back shares.
The disclosures helped the firm’s shares shoot up more than 9% in after-hours trade on Tuesday.
2. Non-Anglophone shows have been a hit
More than 80% of the new sign-ups last year came from outside the US and Canada, with Europe counting for the most new members. And Netflix shows are increasingly breaking national barriers.
For example, Netflix said that the French-language show Lupin, about a gentleman burglar, had shot to the number one spot in Brazil, Argentina, Germany, Italy, Spain and others – while ranking second on its top 10 list in the US.