In a Q4 2020 letter released to investors, Netflix discussed their present areas of growth, what the future might look like for them, and how they believe they'll fare in the increasingly crowded marketplace for streaming content. And while the streaming content is, indeed, super-crowded with behemoth companies making giant plays for relevancy (Netflix explicitly acknowledges Disney+'s first year 87 million subscriber base in the letter), Netflix still believes they're the top dog. And frankly, they've got the numbers to back it up.

The end of 2020 brought Netflix's total number of paid subscribers to a whopping 203.7 million, with an addition of 37 million subscribers in the starved-for-entertainment-climate of 2020. This number is absolutely wild, yielding seemingly incontrovertible proof that Netflix is a pandemic-proof economy generator; in fact, a pandemic where no one could go anywhere likely helped them out in the long run. And now, Netflix is projecting a 2021 where they'll break even instead of lose money for the first time in a long time; their total net cash loss dropped from $1.5 billion in 2019 to just $138 million in 2020, and Netflix believes that trend will continue.

the-queens-gambit-anya-taylor-joy-social
Image via Netflix

With all of these subscribers injecting cash into Netflix, where does it all go, and why do they keep reporting losses? Because of their unrelenting infusion into new content — a practice Netflix will alter in 2021, saying "we believe we no longer have a need to raise external financing for our day-to-day operations." As for the content they'll continue producing, expect much of it to have an international focus and bend; "83% of our paid net adds in 2020" came from regions outside of the United States and Canada, meaning they're going to want to keep producing content like Eurovision and Mosul that plays for all kinds of audiences.

Content-wise, Netflix commanded a whopping nine out of 10 of the Top 10 Google Searches for television shows in 2020, featuring, in descending order, Tiger KingMoney HeistCobra KaiThe Umbrella AcademyEmily in ParisOzarkThe Queen's GambitOuter Banks, and Locke & Key. Conversely, they only scored two of the 10 Top 10 Google Searches for movies in 2020 — 365 Dni and Enola Holmes. Will Netflix take these cues to focus more explicitly on television and leave the "original streaming movies game" to Disney+ and HBO Max? Or will they go harder, dovetailing an attempt to make more of a film culture splash with their renewed focus on international content? Whatever happens in the streaming future, as this letter phrases it, "it’s a great time to be a consumer of entertainment."