Netflix warns that new services from Disney and Apple will hit growth

Andrew Cummings
October 18, 2019

US online streaming giant Netflix Inc. said Wednesday that its revenue rose to 5.2 billion USA dollars in the third quarter of 2019, up 31 percent year-on-year. This has been a practice Netflix began doing in the past year, which has helped give the public an idea of the popularity of its programs. This week, Netflix revealed data for its most popular movies and shows over in its quarterly earnings report.

Netflix mentioned it calls for so as to add one other 7.6 million common subscribers through the remaining three months of the 12 months, beneath from 8.Eight million whereas in the identical interval newest 12 months in an acceptance of the extra threatening competitors. The company added 6.77 million paid customers around the globe, topping the almost 6.7 million average expectation of analysts, according to IBES data from Refinitiv.

Still, the company faces challenges. The third season of Stranger Things was the most watched piece of programming ever, with 64 million households tuning in, inside four weeks of release. "A caveat is that competition hasn't hit yet".

Netflix has also alienated many conservative and right-of-center consumers with its close ties to former President Barack Obama, who signed a production deal with the streamer previous year.

Apple TV+ will cost even less at $4.99 a month, and is also set to launch next month, creating more competition for Netflix, which for years has easily dominated the streaming universe.

This quarter is also a miss for Netflix, although just a couple hundred thousand from their initial 7 million new subs goal.

"The launch of these new services will be noisy", the company said in a press release.

However, it said it expects growth to improve after temporary disruption. Disney is "going to be a great competitor", and Apple is "just beginning, but they'll probably have some great shows, too", he continued, before adding they're all still competing with linear television - the same industry that's experiencing record losses. That topped Wall Street's concensus target of $1.04. Revenue was $5.24 billion, slightly below the $5.25 billion expected. Analysts on average had expected $5.52 billion. Unsurprisingly, Netflix has carefully invested within the global sector as assorted streamers skedaddle to buy up.

Netflix's earnings as reported by CNBC gave the NFLX stock a nice 9% boost in after-hours trading.

"It's turning into tremendous that Netflix is shedding some of its appeal within the domestic market which is soon to vary into plenty extra crowded, and that appears to be like to be the explicit field here", Anwar said.

In the next earnings report, Netflix will begin disclosing revenue and membership by regions - Asia Pacific, Europe, Middle East/Africa, Latin America and the United States, the company said.

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