Despite COVID-19 forcing everyone home, Netflix’s stock tumbled more than 10% Thursday. This number comes after projections that the company could draw in just 2.5 million subscribers in the next quarter. However, in the second quarter of 2020, Netflix had reeled in 10 million subscribers.
Netflix Promotes Ted Sarandos
Aside from this news, Netflix said they were promoting Ted Sarandos to co-CEO, together with Reed Hastings. Sarandos is Netflix’s chief of content. In a statement, Hastings welcomed the news. “Ted has been my partner for decades,” he said. He added that the two of them were already leading the company together informally. This promotion just formalizes the partnership.
Netflix also made news on by announcing that Ted Sarandos, the company's longtime content chief, would become co-CEO alongside Reed Hastings. https://t.co/5DEMAKAFd9
— CNN Business (@CNNBusiness) July 16, 2020
Sarandos will still be the content chief. In a blog post, Sarandos said he promises to keep doing what has made Netflix successful. He plans to “keep pushing the boundaries” for “people who love stories.”
Netflix’s Strong Second Quarter
Netflix had a strong second quarter. The company reported profits of $720 million, a long jump from $271 million in the prior quarter. Altogether, Netflix made a profit of $6.1 billion, a 24% increase. However, the company expects growth to slow down due to COVID-19. Consumers still have to get used to COVID-19 restrictions before subscribing.
Netflix’s Competitors in the Streaming Market
In addition to COVID-19, Netflix also faces stiff competition. WarnerMedia recently launched HBO Max, another streaming app. Other competitors include Disney+, Apple TV+, Amazon Prime, and Hulu.
Netflix plans to resume production of its original content safely. They said they would stick to their original plans for 2020. Worrying about competitors is also far from their minds. “We continue to stick to our strategy,” Netflix said Thursday. To stay ahead, they would “improve their service and content” quicker than their rivals.
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