Disney is a Great Competitor, Now Part of Netflix’s Competition List

Andrew Cummings
October 18, 2019

Netflix believes it's in a good position to take on any newcomers, even those backed by Disney and AT&T.

Another house, Needham, projected the company would lose 10 million of its roughly 60 million USA subscribers over the course of 2020 unless it lowers prices, and several analysts noted the company's own "prudent" estimates for subscriber growth into the end of 2019. "So far we're yet to see any indication that Netflix has a solution to this increased competition". The recent price hikes didn't help Netflix keep as many subscribers as it expected.

Netflix projects 7.6 million global net additions for the current quarter, down from 8.8 million additions in the prior-year period. This strategy has worked on two fronts.

Netflix-backed films set for release this quarter include Martin Scorsese's "The Irishman", with actors Robert De Niro, Al Pacino, and Joe Pesci, and "Marriage Story", starring Scarlett Johansson and Adam Driver.

Netflix is not totally blind to the impact of the new services. Unsurprisingly, Sacred Games is Netflix's most-watched show in India.

According to MarketWatch, streaming giant Netflix has revealed an addition of 6.77 million paying subscribers when announcing details of its third-quarter financial results, although this is slightly less than the projected figure of 7 million net subscription additions.

The massive thriller presently is whether or not any of Netflix's current subscribers will select to get rid of its service and test to extra cheap choices that Apple and Disney will begin throughout the subsequent month. With U.S. growth potentially plateauing and marketshare expected to decrease as the overall streaming pie becomes more divided, some analysts fear Netflix will be forced to simply run in place at great cost.

And more competition looms on the horizon, as AT&T's WarnerMedia will launch its new Netflix rival "HBO Max" in early 2020 after reclaiming the rights from Netflix to stream its popular television comedy "Friends".

“While the new competitors have some great titles (especially catalog titles), none have the variety, diversity and quality of new original programming that we are producing around the world, ” said Netflix, confident in its ability to sustain itself in the face of competition. "There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance", admitted Netflix, while setting out its stall in defence.

In the week leading up to the earnings report, Netflixs stock value inched up, but it has not changed dramatically since being reported yesterday.

Other reports by iNewsToday