Netflix Revenue Surges to $25 Billion in 2020 as Memberships Soar
Netflix has reported a significant increase in annual revenue, reaching $25 billion in 2020. This marks a 24% rise from the previous year, driven by a surge in paid memberships and viewership due to Covid-19 restrictions.
The streaming giant added a record 37 million paid memberships in 2020, bringing its total to over 200 million. This growth, a 23% increase from the previous year, was boosted by the pandemic as people turned to streaming services for entertainment.
Despite the impressive growth in memberships, average revenue per membership remained flat year over year in the fourth quarter. However, since 2018, Netflix's average revenue per membership has grown from $9.88 to $11.02, indicating a steady increase in revenue per user over time.
Netflix's strong performance in 2020 is a testament to its popularity and resilience during challenging times. Looking ahead, the company expects a slower growth in paid net-adds in 2021, with an estimated 6 million compared to the 15.8 million seen in the first quarter of the previous year, as demand normalizes following extraordinary pandemic-related spikes.
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