Calm before the storm

Calm before the storm

Netflix faces its final quarter of calm before the streaming wars begin as Disney and other competitors aim for the very top.

Netflix presented on October 16th its third-quarter earnings, and all is good and steady, but it will be the last time the streaming company presents its quarter earning results before both Disney+ and Apple turn into selling streaming competitors. NBCUniversal’s Peacock and WarnerMedia’s HB will also be on the market by the spring of next year.

According to recent data from CNBC, Netflix’s stock has fell more than 22% since the last time it reported its quarterly earnings ( July 17). Since then, the company has just added an estimated 2.7 million new net subscribers, well below its 5 million estimation, and while one quarterly miss may not sound as a big enough problem, a new world of multiple, well-established competitors may have Netflix somewhat nervous about what’s to come.

According to Deloitte’s 13th Digital Media Trends Survey, streaming services have made great progress in recent years as 69% of U.S. households reported having a subscription to a streaming video service in late 2018, while 65% were paying for regular television, but that doesn’t mean things are safe for Netflix. The expansion of more and more options has shifted Netflix’s growth into international markets, however, Statista illustrated that this international expansion has also fallen sharply for the streaming giant, a fact that many observers attribute to the weak lineup of exclusive shows debuted over the past year.

Business Insider reported that the streaming giant crushed Wall Street’s earnings projections and added slightly more paid subscribers internationally than expected during the period: Netflix was much more profitable than analysts expected during the third quarter. It posted earnings of $1.47 per share, or $665 million, compared to $0.89 per share during the same period a year earlier. But the company missed its subscriber targets in the US, its largest single market, after rolling out price hikes earlier in the year. The miss came after Netflix lost US subscribers for the first time since 2011 during the second quarter.

Starting next year, Netflix will stop giving guidance for the US as a region, the company said in its release. Instead, it will report based on four regions: US and Canada, Asia Pacific, Europe, and the Middle East and Africa. It will provide guidance only on global subscriber additions.

The other side

Disney’s stock has risen by around 30% already this year after announcing that its much anticipated Disney+ subscription video-on-demand service will launch on almost every major streaming platform, beginning in the US, Canada, and the Netherlands on Nov. 12 costing $6.99 per month or $69.99 per year.

Users of Apple TV and iOS, GoogleChromecast, Android, Android TV, Sony PlayStation 4, Roku, and Microsoft’s Xbox One will all be able to access the service via subscription or in-app purchases.

Disney+ is the company’s attempt to take on the likes of Netflix, Apple, and Amazon, producing original content through the Disney, Marvel, Star Wars, and Pixar brands. It will also feature rebooted content from well known Fox franchises such as Home Alone, Night at the Museum, and Cheaper by the Dozen.

2019-10-16T22:18:17+00:00

About the Author:

Olivia Toledo
error: Content is protected !!