It has surpassed 200 million subscribers worldwide and beat the estimates for revenue in the last quarter of 2020 the Netflix movie streaming platform which added an additional 8.5 million subscribers during the period October-December in a record year due to the pandemic and the restrictions that led us to spend more time at home.
The video streaming service from the Los Gatos, California-based company recorded rrevenues of $ 6.64 billion and exceeded Wall Street forecasts. Did not live up to expectations on the earnings front where for the fourth quarter of 2020 it was $ 1.19 per share, down to $ 542 million from the 587 million in the fourth quarter of 2019. Fourteen analysts interviewed by Zacks were expecting revenues of $ 6.63 billion. Results that disappointed Wall Street expectations. The average estimate of 15 analysts interviewed by Zacks Investment Research was a profit of $ 1.38 per share. But Netflix finally stopped “burning” money last year, largely because government restrictions imposed during the pandemic cut programming production. We are increasingly becoming a global company with 83% of new subscribers in 2020 coming from outside the US and Canada, Netflix says in a statement. expecting to add 6 million subscribers for the first quarter of 2021, down from 15.8 million in the first quarter of 2020, that of the initial impact of Covid.
After disrupting the DVD rental industry, Netflix introduced the revolutionary concept of streaming TV shows and movies 14 years ago. At that time, his service only had 6 million subscribers. The streaming service started growing rapidly seven years ago as Netflix began producing its own shows and accelerated a worldwide expansion that is now coperates more than 190 countries. Since the February 2013 debut of its first original series, House of Cardss, Netflix has attracted more than 170 million additional subscribers. It gained another 37 million subscribers last year, a 22% increase from 2019. Its stock fared even better, up 67% last year. The Los Gatos, California company now boasts a market value of over $ 220 billion. Despite all its success, it still faces challenges in the years to come from uan array of rivals in your pocket, with perhaps the most formidable represented by a more experienced and even bigger entertainment company: Walt Disney Co. To retain and attract subscribers, Netflix had already spent a lot on original programming but during 2020, the first time company has not had a negative cash flow for a full year since 2011.
Netflix predicts that it will no longer need to raise funds through debt issuance to finance daily operations: the streaming TV giant anticipates cash flow at break-even, but intends to keep 10-15 billion dollars of debt. Netflix does not rule out a buyback plan to distribute funds to its shareholders. The company also said it doesn’t expect to suffer the same money loss it has had for most of the past decade, even as it will ramp up production of its original programming again and prepare to release at least one original film a week. on its service throughout the year.