Netflix released its first quarter results for fiscal 2010 and revealed unusual impacts on coronaviruses.
Simpler in its Form 10-Q [PDF], Netflix said, “The COVID-19 pandemic has also resulted in an increase in our net additions of paid members compared to our quarterly forecasts and historical trends.”
In fact, the company registered 15.5 million new subscribers during the quarter for a total of 182.86 million, almost double the growth in subscriptions in recent quarters.
But the record warns that the surge “may not be indicative of results for future periods”.
“Our increase in net paid member additions may reflect the acceleration in growth that we would have experienced in subsequent periods, and member growth may slow or reverse, due to slower acquisition and / or higher cancellations as government and other restrictions are relaxed, “the document added.
CEO Reed Hastings » letter to shareholders [PDF] opens with “In our history of more than 20 years, we have never seen a more uncertain or troubling future” and goes on to explain that the integration of a rush to new users has in fact damaged average income per Netflix user.
The CEO also explained that the pandemic would have an impact on the streamer stream of new shows, as most film crews around the world had to stop working (although the hosts quickly resumed work and the writers had just kept writing).
Revenues for the quarter were US $ 5.7 billion and operating profit was $ 958 million, the two best results the company has achieved in recent history. And this after taking into account the strength of the US dollar, which reduces the value of subscriptions in other countries.
The company also blogged on its introduction of TLS 1.3 support.
Sekwon Choi, senior software engineer, wrote that TLS 1.3 had gone from its predecessor’s use of weak numbers and a talkative handshake process. Netflix is of particular interest for the new 0-RTT feature which, according to Choi, “allows an application to include application data with its initial negotiation message, instead of having to wait for the negotiation to end” .
For Netflix, that means it can do full negotiation with a device with a round trip, or sometimes without a round trip. This translates into faster starts for flows and less traffic on the networks, which Choi says will be appreciated.
“As a result, we have started deploying TLS 1.3 on new consumer electronics devices and expect more devices to be deployed with TLS 1.3 capability in the near future,” he wrote.
But subscribers shouldn’t expect more new features. Hastings’ letter added that although the Netflix developers are now working from home and the transition has gone smoothly, but: “As a precaution, we have temporarily reduced the number of product innovations we are trying, all by continuing to publish features that we know will add value to our members, like improving parental controls. “®
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