Netflix is flexing its muscles hardcore.
Today the content giant released its first-quarter results and revealed that only within Q1, thanks to the whole world being stuck home and the success of the Tinger King documentary it gained 15.77 million new subscribers.
In total, Netflix reports that its total paid subscriber base is 182.86 million, 22.8% increase given 2019 it had 174.09 million. Experts predicted that COVID19 would help the service gain around 8.5 million new subscribers, reality far exceeding such a quota.
While it may be sun shine and smiles now, in a letter to investors Netflix says it is expecting a decline in subscribers at some point down the road:
“Like other home entertainment services, we’re seeing temporarily higher viewing and increased membership growth. We expect viewing to decline and membership growth to decelerate as home confinement ends, which we hope is soon.”
Looking ahead, the company says it hopes to gain around 7.5 million new subscribers in the 2nd quarter but said that number is based on “guesswork.”
Looking at the competition is just depressing. A report 2 weeks ago said that Apple TV+ may have a subscriber base of around 30-40 million. While we have no real numbers from Apple, if the report is true it shows the clear advantage that Netflix plays in the market.
Apple TV+ has struggled to keep up with the vast amount of production and content being thrown in Netflix. The company despite its best hopes was unable to get traction right off on the launch of the service, but it seems to slowly moving along. Netflix plays a far greater role in the production side of things, Netflix hosts hundreds of its own original shows, with Apple only producing a handful.
While in Apple’s defense Apple TV+ is still new, it’s current future based on where it’s been shows that it has alot of work to do before it’s the preferred streaming service of choice for customers.