Aggregate Demand & Supply

In March 2020, entire countries went indoors at the same time. Schools closed, offices emptied, cinemas shut. What were two billion people stuck at home going to do for the next year? Streaming services took the call. Netflix added 36 million paid subscribers in 2020 alone, more than its previous two years combined. Disney Plus crossed 100 million subscribers in 16 months, hitting a target it had given itself five years to reach. The demand side of the entertainment economy had moved sideways and up at the same time. Almost overnight, every household needed more home entertainment hours than it had ever needed before, and they all needed it through the same pipe. The aggregate demand curve for streaming, considered as a single market, shifted dramatically to the right.