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That lower-than-expected projection despatched the corporate’s stock tumbling greater than 10% in after-hours buying and selling. Netflix now has roughly 193 million subscribers globally.
“Ted has been my partner for decades,” Hastings mentioned in a assertion. “This change makes formal what was already informal — that Ted and I share the leadership of Netflix.”
Sarandos, who will proceed as the corporate’s chief content material officer, mentioned he was “excited and honored” by the promotion.
Netflix’s second quarter revenue in 2020 greater than doubled to $720 million from $271 million within the year-earlier quarter. Its income jumped 24%, to $6.1 billion. This is the second quarter in a row the corporate has seen its subscriber development blow previous its expectations as thousands and thousands of individuals are caught at house due to the coronavirus pandemic. Netflix mentioned in its letter to traders that it anticipated development to gradual “as consumers get through the initial shock of COVID and social restrictions.”
“We continue to view the quarter-to-quarter fluctuations in paid net adds as not that meaningful in the context of the long run adoption of internet entertainment, which we believe provides us with many years of strong growth ahead,” the corporate mentioned.
Netflix added that its largest precedence is to restart “our productions safely and in a manner consistent with local health and safety standards to ensure that our members can enjoy a diverse range of high quality new content.”
The firm additionally mentioned that its 2020 plans for brand spanking new authentic exhibits are nonetheless “largely intact” due to its lengthy content material manufacturing lead time. “The pandemic and pauses in production are impacting our competitors and suppliers similarly. With our large library of thousands of titles and strong recommendations, we believe our member satisfaction will remain high.”
Netflix’s earnings come after a number of rivals have launched their very own streaming providers to rival the corporate.
“Instead of worrying about all these competitors, we continue to stick to our strategy of trying to improve our service and content every quarter faster than our peers,” Netflix mentioned on Thursday. “Our continued strong growth is a testament to this approach and the size of the entertainment market.”
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