Netflix Is Trying to Find Another Gear to Boost Subscriber Growth

The novel coronavirus pandemic gave Netflix (NASDAQ: NFLX) a shot in the arm in the first half of 2020 as people streamed more video while stuck at home by lockdowns put in place to contain the spread. But now it looks like the streaming giant's COVID-19-driven gains might be about to come to an end.

Netflix's subscriber growth for the third quarter of 2020 disappointed Wall Street, falling short of the company's own expectations. Netflix added to investors' gloom by pointing out that it expects subscriber growth to decline on a year-over-year basis in the first half of 2021. There are concerns that Netflix's growth may have already hit a peak, with its subscriber base anticipated to grow 14% next year compared to this year's estimated growth rate of 20%.

But it may be too early to count Netflix out. The company is making a bold move in one of the world's most promising online video streaming markets, which could help it find an extra gear to boost its growth.

Source Fool.com