Netflix's Growth May Have Already Peaked
Just a few months ago, it looked like the COVID-19 pandemic had kicked Netflix's (NASDAQ: NFLX) growth into overdrive. In the first half of 2020, the video-streaming pioneer's paid subscriber total surged by nearly 26 million. That was more than double the number of paid net additions from the first half of 2019.
However, Netflix's subscriber growth came back to Earth beginning in May. Netflix is still on track to report strong membership growth in 2020. But the fact that the pandemic provided only a limited short-term boost to its growth rate raises the question of whether the company has entered a new period of perpetually slowing growth.
Three months ago, Netflix projected that it would add 2.5 million paying subscribers in the third quarter, compared to 6.77 million in the prior-year period. Management attributed the slowdown in subscriber additions to growth having been pulled forward into March and April (the peak of the shutdown phase in many countries).
Source Fool.com
