Netflix’s usage and churn are “back to what they were a year ago”, while subscriber growth was down (+2.2 million globally) as the two levers—reduction in churn and the "pull-forward" effect of the pandemic—for its recent explosive growth softened
Although there will be some lag, content production is back to a near steady state. Since the shutdown eased Netflix has completed principal photography on 50+ productions and the company is optimistic that it will complete shooting on over 150 other productions by year end
The pandemic has handed Netflix residual benefits, including an acceleration of the changes in viewing behaviour and an improved position in terms of cash: it stated that its “need for external financing is diminishing [so] we don’t have plans to access the capital markets this year”
STV now has a clear pathway to reduce its reliance on linear advertising by investing in production, while pushing the transition to digital forward with a UK-wide footprint.
To that end, STV Player has some momentum and recent production company acquisitions, increasing external commissions and PSB Out of London quotas should ensure STV Studios returns to growth in 2021.
Such development is imperative: COVID-19 has accelerated structural change in viewing habits meaning now that content must not only be great, but available widely and immersed in a smooth user experience just to have a chance.