Netflix saw a huge boom at the start of COVID as most of the people were forced to stay in their homes with nothing to do. However, it seems that Netflix has finally descended back to Earth in Q3 2020.
In a letter to the shareholders, Netflix has confirmed that their User growth has slugged in Q3. They expected that they will have a 2.5 million membership increase in Q3 but only managed to get 2.2 million new memberships.
This however does not mean that Netflix is slowing down. Their retention stats are still going strong. The low number of new memberships is attributed to the 28.1 memberships that were added in the first three quarters of 2020. In comparison, there was an addition of 27.8 million subscriptions in all of 2019.
This may also be since COVID slowed down the production of new shows in 2020. Although production started again, many shows were canceled or delayed due to positive Corona tests appearing among staff members.
Netflix revenue has also shown a decrease in year over year growth for all quarters in 2020. However, the revenue itself has continued to increase each quarter.
Netflix also recently ended its free trial option which provided a 30-day free trial of its services and started focusing on different sources for attraction of customers