Netflix added 10.1 million paying subscribers last quarter, up from 2.7 million in Q2 last year, according to its latest financial results. So far in 2020 it has added 26 million ‘paid memberships’, nearly as many as the 28 million it added in the whole of 2019.
Meanwhile, the video streaming service’s revenues were up by 24.9% year-on-year (to $6.15bn) in Q2, helping it to record a net profit of $720m.
All good, right? Well, Netflix’s share price tumbled by nearly 10% after its announcement, with the markets spooked by its warning about slower growth in the second half of 2020.
“Growth is slowing as consumers get through the initial shock of Covid and social restrictions,” explained the company in its letter to shareholders. “We’re expecting paid net adds will be down year over year in the second half as our strong first half performance likely pulled forward some demand from the second half of the year.”
Netflix also announced yesterday that its chief content officer Ted Sarandos will now also be its co-CEO. He’s no stranger to the music streaming world either: Sarandos has been a director on Spotify’s board since September 2016.