Netflix, the media entertainment streaming service has seen a record increase in new subscriptions as the UK national lockdown and social distancing measures continue.
The streaming platform reported during the first quarter it added 15.8 million new customers taking the total number of subscriptions to 182.9 million at the end of March.
The increase in customers is Netflix’s biggest three-month gain since the company introduced streaming services back in 2007 and cementing its status as one of the most in-demand consumer services during the coronavirus pandemic.
The demand increase was aided by series such as reality show “Love is Blind” as well as the true-crime documentary “Tiger King” and the thriller “Money Heist.”
The company has seen profits climb to $709 million as revenues increased by 28% compared to the same period last year to $5.77 billion.
Netflix expects the subscriptions to continue for the April – June period, with 7.5 million more subscribers. However, the company admitted this increase was an educated guess due to the uncertainty about when national lockdowns might be lifted.
“Like other home entertainment services, we’re seeing temporarily higher viewing and increased [subscription] growth,” the organisation said of the Covid-19 pandemic.
The coronavirus crisis has meant that Netflix has suspended production of new series.
The pandemic has affected the company’s income from outside the US due to the rise of the dollar as investors switch to – a safe haven – versus other currencies.
The company believes that the pace of growth after the lockdown is lifted will not continue, conceding, “we expect viewing to decline and membership growth to decelerate as home confinement ends.”
Coronavirus has battered US stocks for the last couple of months, however, Netflix has seen an 11% gain over the period since February whilst the S&P 500 Index has fallen by 19%.
After-hours trading shows that Netflix shares rose by 1%.
Netflix is facing an increasingly competitive market in the United States with Disney launching its streaming service, Disney +.
Covid-19 Causes Millions To Claim UK Furlough Scheme
BA cuts 12,000 jobs, unions hit back