Netflix hits more than 200 million subscriptions
Streaming giant, Netflix has recorded the year that just ended as its biggest year in the company’s history, with a bang, following the addition of more customers than expected, which the company say, it will no longer needs to borrow money to build its entertainment empire.
The world’s leading paid streaming service attracted 8.51 million new customers in the final three months of the year 2020, helped by the popularity of hit shows such as “Bridgerton” and “The Queen’s Gambit.” That outpaced Netflix’s own forecast and the 6.06 million projected by Wall Street, helping send its shares up 13% in late trading.
The earnings report included two key landmarks for Netflix: The company having exceeded the 200 million-subscriber mark for the first time, said its cash flow will allow it to stop relying on debt to fuel its growth. With $8.2 billion in cash, and a credit line that hasn’t been drawn down.
Netflix said it no longer needs external financing. It’s also considering stock buybacks, something it hasn’t done in about a decade.
Netflix’s growth has ebbed since pandemic lockdowns fueled a boom in sign-ups during the first half of 2020. It added 25.9 million customers in the first six months of that year and has repeatedly warned that the surge would take a toll on growth in subsequent quarters—what it calls the “pull-forward” effect. Still, it found more runway than expected in the latest period.
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