Netflix posts another strong quarter, with 10 million new subscribers

Netflix reported 10 million new subscribers over the second quarter of the year but warned growth will slow down in the second half.

The BBC reported:

Netflix has seen a surge in sign-ups due to the coronavirus lockdown, but has warned investors that subscriber growth will slow.

The streaming giant added more than 10 million subscribers in the three months to July, bringing the total of new subscribers to 26 million in 2020.

In contrast, Netflix saw 28 million new subscribers for the whole of 2019.

“Growth is slowing as consumers get through the initial shock of coronavirus and social restrictions.”

Julia Alexander from The Verge wrote:

Netflix noted that it added 26 million paid new subscribers in the first two quarters of 2020 alone; in 2019, the company added 28 million subscribers in total. The company’s revenue grew 25 percent year over year, but missed its revenue goals for the quarter. The undeniably strong performances of the first two quarters are something the company is proud of, but executives still warning investors about reading too much into. Netflix is anticipating adding 2.5 million subscribers in its third quarter, down from 6.8 million in last year’s same quarter.

TechCrunch’s Alex Wilhelm noted:

The company also expects to add 2.5 million net new subscribers in Q3. As the market had expected the company to generate $6.39 billion in third-quarter revenue and $2.00 in per-share profit, we again have a slightly mixed picture. But the modest net subscriber adds tied to Netflix’s slower-than-anticipated revenue growth appear to have spooked the street.