Streaming giant Netflix has seen a jump in registrations due to the blocking of the coronavirus, but the company warned investors that subscriber growth will slow.
Netflix added more than 10 million subscribers in the second quarter of 2020, bringing the total to 26 million in 2020.
In contrast, Netflix saw 28 million new subscribers for the whole of 2019.
The company said: “Growth is slowing as consumers go through the initial shock of the coronavirus and social constraints.”
Shares of Netflix fell in after-hours trading as investors received the company’s quarterly update.
Its revenue rose nearly 25 percent to $ 6.1 billion, while earnings rose to $ 720 million for the quarter from $ 271 million a year ago.
Netflix shares jump 20% on record number Netflix subscribers go live in almost every country in the world
Subscriber surcharges were far higher than analysts expected.
Although some people may still leave the service, the pandemic has made it clear that Netflix is an indispensable part of viewers’ lives, analysts say.
Netflix also announced that it is promoting CEO Ted Sarandos to co-CEO.
CEO Reid Hastings told investors: “This change formally makes what was already informal – that Ted and I share the leadership of Netflix.”
Netflix was founded in 1997 by Reed Hastings and Mark Randolph in Scotts Valley, California. The company’s initial business model included DVD sales and mail rentals, but Hastings abandoned sales about a year after the company was founded to focus on the original DVD rental business. Today, Netflix produces and distributes content from countries around the world.