When Covid-19 emerged in 2020, many movie theaters were temporarily shut down and with this people began taking comfort in watching movies. They wanted to connect to others about this shared interest and that is when conversation about Letterboxd grew. In 2020 user popularity grew from, "1.8 million in March 2020 to 3 million in January 2021." As of 2024, there are over 14 million users! 

With the growth of Letterboxd also comes its benefits, especially to independent films.  Independent films gain increased exposure on the platform through relevant tagging and thematic categorization, making them more likely to appear in search results. Letterboxd also allows film makers to create an audience by interacting with your viewers which can create opportunities for the future, and develop a loyal fanbase, even if it's niche. In addition, positive ratings and reviews act as a stamp of approval, showing your film's quality.

In 2023 founders of Letterboxd sold a majority of their stakes to a company called Tiny, a Canadian investment company. They came to this decision because Tiny will help them expand/grow Letterboxd further while also allowing original management to continue working.  

Letterboxd has some plans for the future, they want to be able to send you a notification when a movie on your watchlist is having a showing. They would also like to give you recommendations based on your previous watches. As well as incorporating TV show reviews into their platform.