the 7 million it guided for). In that earnings report, Netflix cautioned growth would slow as stay-at-home orders were lifted., Netflix’s global net sub adds were about 10 million , and it again cautioned against lofty growth expectations, saying that H1 ‘20 results likely ate away at would-be H2 ‘20 growth.
Still, investors responded accordingly to the company missing one of its most important growth metrics: Netflix stock dropped Don’t expect Netflix’s demeanor to change course as 2020 comes to a close as a result, though. It again sprinkled familiar mentions that early 2020 growth will come at the expense of growth later in the year and guided for Q4 sub adds almost 3 million lower than what it added in the same period one year prior.
Those signs pointing toward the possibility of more consumers staying home could help juice sub sign-ups in Q4, at least domestically. Another factor that could be beneficial to Netflix’s Q4 growth is more months will have passed since its “Cuties” scandal. Some subscribers who left because of the French arthouse film could decide they made enough of a statement already and return to the service in time for its holiday original programming, for example.
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