Streamers "all relatively small to linear TV" claims Netflix CEO

Andrew Cummings
October 18, 2019

At least if the letter the company sent to its shareholders is anything to go by. At one point during the company's video earnings call, CEO Reed Hastings smirked as he pointed out Disney+ and Apple TV+ will launch within two weeks of one another "after 12 years of not being in the market".

Its earnings so far have pushed up the NDLX stock by over 9% during after-hours trading.

Nevertheless, it said it expects boost within the fourth quarter to verbalize no three hundred and sixty five days-on-three hundred and sixty five days as Apple and Disney enter the market, that potential that subscriber boost will decline in 2019 for the principle time in latest years. So far, domestic paid subscriber additions have registered 517,000 vs. 802,000 expected and the global paid subscriber additions stand at 6.26 million vs. 6.05 million expected.

"The upcoming arrival of services like Disney+, Apple TV+, HBO Max, and Peacock is increased competition, but we are all small compared to linear TV", said Netflix in a statement.

Though Netflix didn't disclose in the letter how it arrived at that figure, The Verge confirmed that it "count [s] a viewer [for a season of a show] if they substantially complete at least one episode (70 percent)".

"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".

While the new streaming services do represent "increased competition", Netflix said the soon-to-launch services won't offer consumers the same amount and selection of content that it now does.

After all, most consumers have been used to subscribing to different cable packages for years, so why should subscribing to multiple streaming services be any different.

Netflix tried to downplay the heavy hits it will begin to take in 2020 by pointing out its "been competing with streamers (Amazon, YouTube, Hulu) as well as linear TV for over a decade".

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