by Muthoni Kimani
January 20, 2021
Despite increasing competition, Netflix has managed to maintain its leading position in the SVOD market.
The streaming giant lately announced it had added 8.5 million subscribers in 2020's fourth quarter, which pushed it past the 200 million subscriber mark for the first time since its inception. Word is Netflix earned $542.2 million in profits between October and December of last year and raked in $6.64 billion in revenue. The company also confirmed it had attracted 37 million paid subscribers in 2020, marking a 31 per cent jump from the prior year and achieved $25 billion in annual revenue.
Netflix also reported a positive cash flow of $1.9 billion in 2020.A significant achievement for a company that posted a negative cash flow of $3.3 billion in the previous year. A significant factor for the increase was the COVID-19 pandemic, which forced studios to halt production, and the spending that came with it, throughout most of the year.
The company projects free cash flow to break-even, meaning it won't have to raise external financing for its day-to-day operations. Netflix said it was exploring a stock-buyback program that would return cash to its investors. They added the company's stock increased as much as 12 percent following its Q4 earnings announcement.
In a statement they said; "2020 was an incredibly difficult year with an extraordinary loss for so many families, new restrictions that none of us have ever had to live with before and great uncertainty,"
"We're enormously grateful that in these uniquely challenging times we've been able to provide our members around the world with a source of escape, connection and joy while continuing to build our business."