COVID-19 Creates 'Noise' for Forecasting: Netflix CEO

Netflix forecasts a 37% year-over-year decline in net paid additions to 2.5 million for Q1, it said, reporting Q4 adds below its forecast (see 2201200069). COVID-19 “has introduced so much noise” to such predictions, co-CEO Reed Hastings told investors Thursday. The “ability” of streaming competitors “to grow even as we've been growing” is a “really strong endorsement for the core idea that consumers around the world are willing to pay for great entertainment,” said Chief Operating Officer Greg Peters. “It encourages us to continue that investment and to try and deliver more entertainment value and earn more of that share.” The stock closed down 22% Friday at $397.50.