Netflix has addressed the brewing competition in the streaming market space, as the launch of Apple+ and Disney+ are fast approaching.
Nairametrics understands that since Disney and Apple announced the launch of their streaming platforms, there have been talks in the media space regarding the competitive attraction the streaming industry is gaining, particularly in recent times.
Ditching the general controversy that greeted the products announcement, Netflix said Apple and Disney would not be the first competitors as it has been competing with streamers like Amazon, YouTube, Hulu as well as a linear TV for over a decade.
In an investor letter, the company stated that although the launches could create some headwind in its short-term growth, there are still opportunities for long-term growth. Netflix further said that instead of Apple and Disney taking audience share from them, they all could collectively take audience share from linear TV.
“In our view, the likely outcome from the launch of these new services will be to accelerate the shift from linear TV to on-demand consumption of entertainment,
“Just like the evolution from broadcast TV to cable, these once-in-a-generation changes are very large and open up big, new opportunities for many players. For example, for the first few decades of cable, networks like TBS, USA, ESPN, MTV, and Discovery didn’t take much audience share from each other, but instead, they collectively took audience share from broadcast viewing.” Netflix says.
A look into Netflix Q3 Financials: The streaming giant reported an impressive revenue of $5.24 billion with subscribers’ growth of 6.3 million paid net additions exceeding expectations. Although Netflix’s subscribers in the United States were particularly weak as it reported 500,000 paid net additions falling far short of its forecast of 800,000.
Comparing it to 2018, Netflix has only seen 2.1 million net additions domestically in the first nine months of 2019, compared to 4.1 million in the same period of 2018. Netflix blamed this on price hikes earlier this year.
Overall, Netflix said it now has more than 158 million members. It’s projecting 26.7 million net adds for the entirety of 2019, down from 28.6 million net adds last year.