Netflix is consolidating its position as the leader in paid video streaming with nearly 204 million subscribers worldwide at the end of 2020. Of course, 2020 has been a favorable year for Netflix thanks to the pandemic and the lockdowns. And that 200 million figure had been in the crosshairs since the middle of the year. In the end, the giant is strengthening itself despite increased competition and a recent increase in its prices, AFP indicates.
And it could go on. “The United States is the market where we have the best penetration, but Netflix represents only 10% of the time spent in front of television”, indicates Reed Hastings, the boss of the group. Especially since Netflix remains the favorite SVOD platform for Americans.
In 2020, Netflix sees an increase of 37 million additional subscriptions, including 8.5 million in the fourth quarter. The platform continues to gain market share even if it is no longer at the same rate as last spring. For the current first quarter, Netflix expects to gain 6 million new subscribers.
In two years, Netflix has almost doubled its number of subscribers
In two years, Netflix has nearly doubled its number of subscribers – from 111 million in early 2018 to 203.7 million in late 2020 – and average subscription revenue has grown from $ 9.88 to $ 11.02, the report said. company.
“We are very close to achieving positive cash flow,” the group announced in its earnings release. “We believe that we no longer need external investments to finance our day-to-day operations”. In the fourth quarter of 2020, the California-based company posted net income of $ 542 million – $ 40 million lower than a year ago – on revenue of $ 6.6 billion, up $ 21. 5%.
2020 will also be remembered as the year in which the sector matures. Apple TV +, HBO Max, and Disney + also took advantage of the lockdowns. Disney + has exceeded 85 million subscribers in one year of existence. But Netflix mentions feeling in competition with linear television, video games and social networks like YouTube, TikTok or Twitch. Netflix specifies that it is working on this point to develop a better share of screen time against these rivals.
Dominance of Netflix in France and Europe
On the French side, last June, the report “The state of the Internet in France” published by ARCEP stated that Netflix came first in French internet traffic with 23% of internet traffic. Google points to 15% and Facebook to less than 10%.
In Europe, Ampere Analysis compiled the revenues of TV groups and streaming platforms which include advertising revenues, SVOD and pay TV subscription revenues as well as public funding. According to the research firm, Netflix reached a new milestone in 2020 after having been the service with the highest number of subscribers in 2017. In 2020, Netflix represents 6.1% of the revenues of TV groups in Europe behind Comcast, which operates the Sky pay TV service in Europe. According to Ampere Analysis, there are no limits to the progress of Netflix.