iWorld
Will COVID-19 help Netflix repeat 2019 subscriber gains?
MUMBAI: As Netflix is about to unveil its all-important quarterly results amid expectations that the ongoing pandemic will boost subscriptions, Futuresource Consulting reflects on 2019 as being its best ever year for net subscriber additions (net adds), highlighting countries which are showing significant momentum.
Netflix gained nearly 28 million subscribers in 2019, driven by many countries which saw the highest yearly net adds since the service launched, indicating that they remain in an accelerating phase of growth. In Germany, Futuresource estimate there was an additional 2 million net sign ups, as Netflix continues to challenge incumbent Amazon Prime Video for the top spot.
Japan grew by 1.7 million subscribers, significantly beating its previous highest additions. South Korea increased by 1.5 million, double the net adds of the year before, and we also saw Italy, Spain and India, among others, all posting their best year yet.
With the ongoing COVID-19 pandemic shows no signs of abating, increasing the quantity of leisure time spent indoors, Futuresource expects to see Netflix’s next quarterly reporting to indicate how its library of fresh content, provided at good value for money, has driven strong uptake of both new and returning subscribers.
What is impressive is that many of these countries, particularly Japan, South Korea and Germany have had a relatively long gestation period, during which the global streaming giant experimented with the content length, type and format which appealed most. Subscriber net adds growth reaching the highest level to date is typically indicative of key shows resonating with the audience and therefore becoming topics of discussion within society.
It is this word-of-mouth and social media traction which inspires new consumers to sign up in order to “see what all the fuss is about”. This therefore creates a self-fulfilling prophecy, generating ever more attention and therefore translating to impressive growth figures, as we saw in 2019.
Further subscriber growth has come from partnering with telcos and pay-TV operators. Combined billing and allowing consumers to remain within a Pay-TV user interface has added more access points to a growing list of connected devices and TVs it’s available on. Moreover, some operators such as Sky have taken this arrangement to a new level and provided slick integration of Netflix’s content into a carousel along with other premium third-party content, such as hit HBO shows.
Furthermore, even within established markets such as Brazil, the UK, France, Australia and the Nordics, subscriber growth has continued, which highlights the broad appeal Netflix has. Once it has attracted subscribers, the voluminous content throughout and high quality of said content helps it maintain subscription growth. The UK for example saw subscriptions increase by 2 million in 2019, equal to its previous best ever year just one year prior, but arguably more impressive since it is now taken in 40 per cent of UK households.
Country by country, Netflix continues to localise and work out what resonates with consumers. The continued momentum in Netflix subscriptions is now also against a backdrop of an increasingly dynamic and diverse competitive landscape. However, the high-profile new service launches are at least in the short term, complementary. In its key countries, Netflix remains the staple service, with the vast majority of SVoD households choosing to subscribe. As we head beyond the lockdown, the key objective won’t just be how many subscribers Netflix adds, but also how it will continue to retain existing subscribers.
e-commerce
American Express to acquire AI startup Hyper to boost automation
Deal targets expense management as AI reshapes corporate spending tools.
MUMBAI: From receipts to robots, the expense sheet is getting a brain upgrade as American Express moves to bring artificial intelligence into the heart of corporate spending. The company has announced plans to acquire Hyper, a relatively young but fast-rising startup founded in 2022 that builds AI-powered agents capable of organising expenses, generating reports, verifying compliance with budgets and policies, and nudging users with timely reminders. The deal, expected to close in the second quarter of 2026, underscores a growing shift among financial institutions to automate traditionally manual, time-heavy workflows.
Hyper counts Sam Altman among its backers, adding a layer of Silicon Valley credibility to the acquisition. While financial details remain undisclosed, the strategic intent is clear: deepen automation capabilities and sharpen American Express’s position in the competitive corporate spending ecosystem.
The two companies are not strangers. They previously collaborated in 2024 on a co-branded credit card product, suggesting that the acquisition is less a cold buy and more an extension of an existing relationship. With this move, American Express is effectively bringing that capability in-house, aiming to embed AI directly into its commercial services stack.
Chief executive Stephen Squeri had already signalled the direction of travel in a recent shareholder letter, describing AI as a “structural shift” in how businesses operate. The Hyper acquisition appears to be a direct response to that shift, particularly in expense management, where processes such as approvals, compliance checks and reporting remain ripe for automation.
Alongside the acquisition, the company is also expanding its product suite. A recently launched business credit card offers cashback and benefits at an annual fee of $295, with another card expected later this year moves that complement its broader push into commercial services.
Taken together, the strategy points to a future where managing expenses may require fewer spreadsheets and more algorithms. For American Express, the bet is simple, if businesses are rethinking how work gets done, the tools that power that work need to evolve just as quickly.
