Enter 2021.01.20 16:20
‘200 million myth’ in 3 years after exceeding 100 million people
Outside of “buy-in” Transaction Share price 12% ↑
The OTT market is likely to continue booming due to fewer external activities
According to the 4Q 2020 results released by Netflix on the 19th (local time), the number of paid subscribers worldwide reached 23.6 million, an increase of 37 million from a year ago. In the fourth quarter alone, 8.5 million people increased. In the third quarter of 2017, it had written the ‘200 million myth’ in three years after surpassing 100 million subscribers.
In particular, growth was remarkable in Asia-Pacific regions such as Korea and Japan. As of the end of last year, the number of Netflix subscribers in the Asia-Pacific region was 25.49 million, up 57.1% from a year ago. The number of subscribers in North America was 73.94 million, 66.7 million in Europe, Middle East and Africa, and 3754 million in Latin America.
Sales also increased significantly. Netflix’s 2020 sales rose 21.5% to $6.64 billion (about 7.3 trillion won) from a year ago. Operating profit increased by 14.4% to 954 million dollars (about 1.49 trillion won). On that day, when Netflix announced that it would consider buying treasury shares this year based on cash liquidity, the company’s stock price soared to 12% in overtime trading after the close of the market.
The industry expects that the OTT market, including Netflix, will grow rapidly in the future. In fact, subscribers from competitors such as Walt Disney’s’Disney+’ and Warner Media’s’HBO Max’ are also increasing. Launched in November 2019, Disney+ has 86.8 million subscribers in one year. It exceeded the number set as the ‘2024 target’ in one year.
The Wall Street Journal (WSJ) predicted, “As the coronavirus pandemic and the prolonged restrictions of governments around the world, external activities have declined and people’s lifestyles have changed significantly,” said the Wall Street Journal (WSJ).