Even though it faces plenty of competition,
Netflix appears better positioned to take
advantage of the surging demand for TV shows
and movies largely because of its head start in
video streaming.
Since beginning its foray into original
programming seven years ago, Netflix has built
up a deep catalog that can feed viewer appetites
even though the pandemic response has shut
down production on many new shows.
That stoppage could hurt Netflix as well,
although analysts at Canaccord Genuity believe
its video library will serve as a “content moat”
that can keep most competitors at bay.
One notable exception is Walt Disney Co., whose
recently launched streaming service is also stocked
with perennial classics, especially for children who
have even more free time than usual.
That’s one of the big reasons Disney’s service
has amassed 50 million subscribers and why
Netflix is basking in another resurgence in
popularity. Netflix predicted it will add 7.5
million subscribers from April through June.
That’s nearly three times more than its average
springtime gain of 2.7 million subscribers during
the past seven years.
“Since we have a large library with thousands
of titles for viewing and very strong
recommendations, our member satisfaction may
be less impacted than our peers,” Netflix boasted
in its report.
Over the past year, Netflix’s growth in the U.S. and
Canada had slowed significantly. But the pandemic
seems have to have reversed that trend for the
moment. Netflix added 2.3 million subscribers in
the U.S. and Canada in the first quarter, up from 1.9
million at the same time last year.