Streaming giant Netflix announced on Tuesday that it had surpassed the 200 million paid subscribers milestone with annual revenues reaching around $25 billion. 

Unlike most businesses, the television streaming industries, which include platforms like Amazon Prime Video, Netflix and HBO Max, have shown a significant surge in revenue in the pandemic which forced everyone to stay at home. 

Also Read: Equities edge higher before Yellen, on eve of Biden inauguration

After a report was released which showed a substantial increase in paid subscribers than assumed, the shares of the company boomed by 12% in after-market trades to $553.50. 

Netflix reported that paid membership increased 23% in the final quarter of 2020 when compared with the same period a year earlier, but the average revenue per membership was flat. 

According to the earnings report, Netflix gained a record-breaking 37 million paid subscriptions in the year. 

“We’re enormously grateful that in these uniquely challenging times we’ve been able to provide our members around the world with a source of escape, connection and joy while continuing to build our business,” Netflix said in a letter to investors.

Also Read: Regime change, stimulus hopes boost US stocks

Profits dipped to $542 million in the fourth quarter, compared with $587 million in the same period in 2019. But overall revenue in the quarter surged 21.5% to $6.6 billion, reported AFP. 

Netflix stated in a letter, “We’re enormously grateful that in these uniquely challenging times we’ve been able to provide our members around the world with a source of escape, connection and joy while continuing to build our business.”

The letter added, “The big growth in streaming entertainment has led legacy competitors like Disney, WarnerMedia and Discovery to compete with us in new ways, which we’ve been expecting for many years. This is, in part, why we have been moving so quickly to grow and further strengthen our original content library across a wide range of genres and nations.”