Netflix isn't worried about the upcoming Disney+ and Apple TV+ streaming services from Disney and Apple, respectively, the company said today in its Q1 2019 earnings report. [PDF]
In the document, Netflix says that it's "excited" to compete with Apple and Disney, and that it does not feel that the new services will affect Netflix's growth because of the "differing nature" of the content offerings.
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Netflix says all streaming services will continue to grow as the market transitions away from the traditional cable viewing.
Recently, Apple and Disney each unveiled their direct-to-consumer subscription video services. Both companies are world class consumer brands and we're excited to compete; the clear beneficiaries will be content creators and consumers who will reap the rewards of many companies vying to provide a great video experience for audiences.
We don't anticipate that these new entrants will materially affect our growth because the transition from linear to on demand entertainment is so massive and because of the differing nature of our content offerings. We believe we'll all continue to grow as we each invest more in content and improve our service and as consumers continue to migrate away from linear viewing (similar to how US cable networks collectively grew for years as viewing shifted from broadcast networks during the 1980s and 1990s).
According to Netflix, there is "vast demand" for watching "great TV and movies," with Netflix satisfying only a small portion of the demand. Netflix says that its streaming hours in the United States represent roughly 10 percent of total TV usage, giving it plenty of room to grow. Netflix also sees growth opportunities in other countries and on other devices like mobile.
In its quarterly earnings report, Netflix reported $4.52 billion in revenue, beating analyst estimates.
Both Apple and Disney are set to launch new streaming services this fall. Apple has not provided specific details on launch timing or pricing, but Disney recently said its new service, Disney+, will come out on November 12 and will cost $6.99 per month, well below what Netflix is charging.
Disney and Apple are investing huge amounts of money into original programming for their streaming services, and Apple has more than two dozen original TV shows and movies in the works.
Netflix recently increased its pricing. It costs $8.99 for a basic non-HD streaming plan, $12.99 for an HD streaming plan, and $15.99 for a "Premium" UHD streaming plan. Netflix also controversially ended AirPlay streaming support on Apple's iOS devices, citing Apple's plans to expand AirPlay to third-party devices and an inability to determine which AirPlay device is which as a reason why.
Top Rated Comments
If you buy a yearly membership it's less than half the cost of Netflix. Meanwhile, Netflix is going to be losing a lot of their Disney shows. When you have access to Disney, Pixar, Marvel, and Star Wars—plus potentially Fox at some point—for half the cost of Netflix, with a ton of new shows and a large back catalog, it's going to be a lot of content and people will be thinking long and hard about whether they really need a Netflix subscription because they are already drowning in content.
Nice knowing ya Netflix.
They shouldn't be concerned about Apple TV+ but they should be concerned about Disney+.
I was going to say the exact same thing. I can totally see myself switching from Netflix to Disney+ the second it comes out.Hopefully Netflix has learned from the mistakes Blockbuster made in how they dealt with Netflix and that they will do a better job at dealing with Disney+
I don't think Apple TV is going to be a very popular service nor have much impact, but Disney+ will.