Netflix growth improves as streaming war looms

18 Octobre, 2019, 07:41 | Auteur: Auguste Feret
  • Netflix shares jump after subscribers bounce back in third quarter

The third season ofStranger Thingsis the most-watched installment of the runaway hit horror series to date, with a mind-numbing 64 million households tuning in to watch the nostalgia-laden drama in the first four weeks of its premiere on Netflix this past July.

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.

The streaming giant said Wednesday that it signed up 517,000 new subscribers for the quarter ending in September, significantly off from the more than 800,000 that analysts had been expecting.

Netflix is pretty much unstoppable, but remember. the streaming wars are only just beginning as Disney is about to unleash Disney+ into the world. "Fundamentally, it is more of the same". And although Netflix has acknowledged that Disney is a great competitor for them, the Disney vs. Netflix's narrative is false.

Netflix's competitions also include the market trend itself.

Hastings has voiced out for the first time, saying Disney will be a competitive threat to Netflix, as well as Apple, who is just starting but set to offer some excellent shows. The company warned the launch of these new services will be "noisy" and it could generate "modest headwinds" in the near term.

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Netflix is forecasting global subscriber growth of 7.6 million for the fourth quarter, implying about 26.7 million total net additions for the year. "If it cuts expenses and reduces its price range on bellow and marketing - the 2 factors which were within the encourage of its sturdy bellow in newest years - it'll lose its appeal and power subscribers to notice in other locations".

It is also conscious of the fact that there is a very large market opportunity, with Netflix taking up less than 10% of television screen time in the U.S., its most mature market, and much less than that in mobile screen time.

"We have been moving increasingly to original content both because of the anticipated pullback of second run content from some studios and because our original content is working in the form of member viewing and engagement", Netflix said.

It has also been expanding its non-English language original offerings to grow its penetration in global markets.

The company said it would spend about US$15 billion in cash on content this year, with the majority of that money devoted to producing original shows.

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