Streaming giant Netflix has seen a surge in sign-ups due to the coronavirus lockdown, but the company has warned investors that subscriber growth will slow.
Netflix added more than 10 million subscribers in Q2 of 2020, bringing the total of new subscribers to 26 million in 2020.
In contrast, Netflix saw 28 million new subscribers for the whole of 2019.
The company said: “Growth is slowing as consumers get through the initial shock of coronavirus and social restrictions.”
Netflix shares dropped in after-hours trading as investors received the company’s quarterly update.
Its revenue increased almost 25% to $6.1 billion, while profits rose to $720 million in the quarter, up from $271 million a year ago.
The subscriber additions were far higher than analysts had expected.
While, some people might still end up quitting the service, the pandemic has clearly shown that Netflix is an indispensable part of viewers lives, analysts said.
Netflix also announced it was promoting chief content officer Ted Sarandos to co-chief executive.
CEO Reed Hastings told investors: “This change makes formal what was already informal – that Ted and I share the leadership of Netflix.”
Netflix was founded in 1997by Reed Hastings and Marc Randolph in Scotts Valley, California. The company’s initial business model included DVD sales and rental by mail, but Hastings abandoned the sales about a year after the company’s founding to focus on the initial DVD rental business. Today, Netflix produces and distributes content from countries all over the globe.
Taylor Swift has decided to pull her 1989 album from Apple Music and criticized the company.
In an open letter to Apple, Taylor Swift said she was withholding the record as she was unhappy with the three-month free trial offered to subscribers by Apple’s new streaming music service.
The 25-year-old singer wrote: “I’m not sure you know that Apple Music will not be paying writers, producers, or artists for those three months.”
Taylor Swift said the plan was “unfair”, arguing Apple had the money to cover the cost.
“I find it to be shocking, disappointing, and completely unlike this historically progressive and generous company,” she said, describing Apple as one of her “best partners in selling music”.
“These are not the complaints of a spoiled, petulant child. These are the echoed sentiments of every artist, writer and producer in my social circles who are afraid to speak up publicly because we admire and respect Apple so much,” she continued.
“We know how astronomically successful Apple has been and we know that this incredible company has the money to pay artists, writers and producers for the 3 month trial period – even if it is free for the fans trying it out.
“Three months is a long time to go unpaid, and it is unfair to ask anyone to work for nothing.”
Taylor Swift ended her letter by calling on Apple to change its policy, suggesting she would reinstate her album on the service if the company changed its mind.
“We don’t ask you for free iPhones. Please don’t ask us to provide you with our music for no compensation.”
Apple has yet to comment on the issue.
The rest of Taylor Swift’s back catalogue will remain available on Apple Music when it launches on June 30. It will cost $9.99 per month in the US for one person or $14.99 for families.
The music industry has generally supported Apple bringing its vast music library to paid streaming, and the company said it will pay 70% of the music subscription revenue to music owners.
It is not the first time Taylor Swift has spoken out against streaming music – she pulled her entire catalogue from Spotify last November and had refused to offer 1989 on streaming services, saying the business had “shrunk the numbers of paid album sales drastically”.
1989 went on to become one of the biggest-selling albums of 2014 and has sold more than 4.9 million copies in the US alone.
Netflix has launched its services in Cuba, as diplomatic relations between the US and the communist island continue to thaw.
The internet movie and television streaming service said its content, such as series House of Cards and Orange is the New Black, will be available to anyone with international payment cards.
On January 15, the US announced new rules that ease long-running sanctions against Cuba.
A trade embargo has been in place since 1962.
MasterCard and American Express have both said they will launch operations in Cuba soon.
Last month, Netflix said its international expansion was proceeding ahead of schedule.
The company said it plans to expand to 200 countries in the next two years, and to earn “material profits” from its operations overseas by 2017.
“We are delighted to finally be able to offer Netflix to the people of Cuba, connecting them with stories they will love from all over the world,” said Netflix co-founder and CEO Reed Hastings in a statement.
“Cuba has great filmmakers and a robust arts culture and one day we hope to be able to bring their work to our global audience of over 57 million members.”
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