Netflix can’t wait to compete against Apple and Disney

Thursday, 18 Apr, 2019

The company knows what people like and what people are willing to pay for, so no one should be surprised when Disney continues to milk those megafranchises to get Disney+ up and running.

Disney's animated films including the classics such as "Snow White", "Cinderella", "Aladdin", "Beauty and the Beast", "Moana", and "The Little Mermaid" will all be available to stream when Disney+ launches. Some have questioned whether Netflix can continue to grow briskly when faced with increased competition.

The company is lifting its prices across the US, Brazil, Mexico and some parts of Europe to help fund the production of its own content. Past increases in Canada also have led to customer cancellations. Netflix does not release any country-specific numbers, although its been releasing originals series and films in India. That was below the 5.48 million consensus of industry analysts surveyed by FactSet.

But the company is less optimistic about growth for the second quarter.

Meanwhile, Raymond James analyst Justin Patterson adds that Netflix's record number of new subscribers for the first quarter shouldn't be overlooked.

Chief Executive Officer Reed Hastings compared the performance to a ideal tee shot in golf.

Media analysts say there is room for multiple players and the streaming space doesn't yet appear to be too crowded.

Netflix predicted it would pick up 5 million new streaming subscribers from April through June.

Martin said that in polling, U.S. customers say they plan to use only two or three streaming services and that as a result, any growth in Disney+ will significantly weaken Netflix. Netflix plans start at $8.99 a month, but the most popular plan is $12.99.

Netflix is to launch a top ten list to give subscribers the chance to find out which of its shows are most popular in their region. Apple Inc., AT&T Inc. and Comcast Corp. are also planning their own offerings.

With the launch of Disney+ later this year, the House of Mouse plans on giving Netflix a real run for its money. Netflix has slipped nearly 3% during that time. It might be a bit unfair to compare the two new subscription services, especially since neither is available yet and both seem to have been inspired by Netflix's interface. Netflix now has 148.8 million subscribers globally, 60.2 million of whom are from the US.

More than 80 percent of new Netflix customers already hail from overseas, and the company has invested billions of dollars to produce original series across Europe, Latin America and Asia.

Profit in the first quarter of 2019 rose to $344 million from $290 million in the first quarter of past year.

Currently Netflix selectively reveals figures for films and original programming that are performing well. It is the largest potential market given that Netflix isn't in China, and fellow online video giant YouTube has had great success.