Netflix’s Stock Is Now Higher Than Before Coronavirus Hit U.S.

TOPLINEAs coronavirus keeps people indoors, Netflix’s weakness — its total reliance on streaming memberships for revenue — has become its strength as it hit a two-year high in the market on Tuesday while other media companies fret over lost advertising dollars and shut movie theaters.

KEY FACTS

BIG NUMBER 

34.3 million. That is how many people Nielsen estimates watched Tiger King, the true-crime miniseries about private zookeepers that has become a sensation. However, splashy new content may not be the only key to Netfliix’s success. “Tiger King gets lots of focus,” says Lightshed partner and analyst Rich Greenfield, “but there is a very deep library that people are diving through right now.”

SURPRISING FACT 

Like the rest of the entertainment industry, Netflix
NFLX
has had to halt production. In the short term, that is not such a bad thing for them, says Greenfield. It is spending less on content while they get more subscribers, freeing up cash flow and making the company more profitable.

FURTHER READING

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Exclusive: Disney+ Sees Huge Subscription Spike As Homebound Audiences Clamor For Content (Forbes)

Saving Disney: Iger Returns As Coronavirus Batters The Company On All Sides (Forbes)

J.K. Rowling Bought Her Childhood Home That Inspired Harry Potter (Forbes)

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