Netflix concluded a period of substantial growth in streaming by gaining 8.5 million net new subscribers during the final quarter of the year.

Consequently, the streaming service now boasts a total of 204 million paying subscribers globally – a net increase of 37 million subscribers for the entire year, exceeding the 28 million net additions recorded in 2019.

The company’s financial results also indicated a revenue of $6.64 billion and earnings per share of $1.19 for Q4, compared to analyst expectations of $6.63 billion in revenue and $1.39 in EPS.

Following the release of the earnings report, Netflix stock experienced a 12.4% increase in after-hours trading (as of 4:43 p.m. Eastern time).

Looking forward, Netflix anticipates adding 6.0 million new subscribers in the first quarter of 2021 – consistent with its previous forecast for Q4, but less than half the 15.8 million subscribers added in Q1 2020, coinciding with the start of lockdowns in the United States.

The company’s letter to investors also highlighted several popular titles from the quarter, estimating that 72 million households will “choose to watch” (view for at least two minutes) “The Midnight Sky” within its first 28 days, and 68 million households will choose to watch “Holidate.” Furthermore, the latest season of “The Crown” achieved record popularity, with over 100 million households choosing to watch the series since its original release.

“Beyond programs with significant viewership, we aim to create hits that become ingrained in popular culture,” Netflix stated. “In 2020 alone, we had ‘Tiger King,’ ‘Bridgerton,’ and ‘The Queen’s Gambit.’ … Indeed, Netflix series accounted for nine of the ten most-searched shows worldwide in 2020, while our films were featured in two of the top ten.”

The company recognized the increasing competition from newer streaming platforms such as Disney+, Peacock, and HBO Max, but its subscriber numbers remain considerably higher than those of its competitors – for instance, Disney+ had 86.8 million subscribers as of early December (Disney’s service launched just over a year ago and is still expanding globally).

“Our approach is straightforward: if we consistently enhance Netflix to better satisfy our members, we can remain their preferred choice for streaming entertainment,” Netflix explained. “The past year demonstrates the effectiveness of this strategy. Disney+ experienced a strong first year (87 million paid subscribers!) and we achieved our largest year of paid membership growth in our history.”

EMarketer analyst Eric Haggstrom echoed this sentiment in a statement:

Update: I should also mention a key point that was not included in my initial report – the earnings report also indicates that with Netflix’s $8.2 billion cash reserve and $750 million available credit line, “We no longer believe there is a need to secure external funding for our regular business activities.”