Netflix, the head of SVOD service, emerged as the containment winner in the first half of 2020 with 25 million subscribers. However, the American giant saw a significant slowdown in its subscriptions in the third quarter of 2020 due to its recent success with its new flagship series, Ratched.
A justified stop
The multiple restrictions imposed worldwide as a result of the Covid 19 pandemic have forced the population to stay at home. Add to this the closure of cinemas, the complete suspension of productions and the postponement of theatrical releases, and Netflix is rubbing its hands. Result: A total of 15 million new subscribers in the first quarter and 10 million in the second quarter of 2020 for the American giant.
However, the platform only attracted 2.2 million new curious people in the third quarter of 2020. An early stop, according to Reed Hastings, the company’s co-CEO:
We have seen exceptional growth in these first two quarters. We therefore assume that growth in the second half of 2020 will be significantly lower than in 2019.
A number that is not so trivial as the service faces competition from other SVOD platforms like Disney +, which have gained 60 million subscribers in ten months. Additionally, Netflix has weathered the gradual resumption of life from the outside. With the reopening of cinemas, restaurants and bars, the population has regained a semblance of activity that is no longer limited to watching series or films at home.
In the third quarter of 2020, all regions of the world were also affected by the decline in subscriptions, such as North America, which had just 180,000 subscribers. Only the Asian market is doing well with a million new viewers.
A little inspired catalog?
However, the Californian company is optimistic about the future, according to Reed Hastings:
Although it is not known what impact Covid-19 will have in the future, we remain optimistic and believe that we will have completed filming for 150 productions by the end of 2020.
If the co-CEO bets on his future new programs, the VOD service suffered from the lack of flagship series between July and September. With the resumption of filming of Season 2 of The Witcher, the best start in the platform’s history, Netflix is hoping to restore its health, especially since the imminent arrival of Season 4 of The Crown will undoubtedly allow it to reboot the machine.