Impact of the Covid-19 Pandemic on Netflix

Abstract

The COVID-19 pandemic and the restrictions related to it had a massive impact on shifts in consumer behavior and consequently accelerated the already existing trend of digital transformation. To adjust to the “new normal” we had to organize our activities remotely, from how we work, how our children learn to how we entertain ourselves. This paper aims to provide an analysis of how the pandemic reflected on Netflix´s business through the analysis of the number of subscribers, revenue, and the company`s stock price. The conducted research relies on the secondary data provided by financial reports, statistics, scholarly articles, and related news sources accessed via online databases and online searches. With its availability in more than 190 countries worldwide, impressive video content library, and a very simple sign-up process, Netflix was very well positioned to benefit from the social restrictions during the pandemic. Millions of people under lockdown turned to at-home entertainment by subscribing to Netflix services and enjoying its content. Despite all the challenges that the company was facing during the pandemic, 2020 was a record-breaking year for Netflix in terms of subscriber number and revenue. Understanding how certain industries react to sudden disruption in the market and how quickly can they adapt their business in a rapidly changing environment is an important step in facing upcoming crises more effectively.