Netflix holds ground in streaming wars against Apple, Disney

Streaming company Netflix has a great chance of survival when it comes to competition with Apple and Disney. Netflix added 8.8 million new subscribers during Q4 2019, surpassing expectations at a time when company is facing heated competition from all corners of OTT segment. Well, Netflix mand to hold its ground and successfully passed its first big test since Apple and Disney launched rival content streaming services.

Netflix had said it expected to add 7.6 million subscribers, and analysts thought service would fare even better. growth rate for Netflix during said quarter [8.8 million] this year was significantly lower than in same period last year [8.9 million]. stock dropped about 2.5% immediately in after-hours trading, likely due to a cautious forecast for first quarter. But shares rebounded and later traded up more than 2%.

Netflix w boasts more than 167 million subscribers worldwide, bolstered by a list of well-received movies and shows released late last year. boost helps reaffirm Netflix’s strong standing in increasingly crowded world of video streaming. fourth quarter was an important milestone for Netflix, as it was marked its first head-to-head competition with Apple’s $5-per-month streaming service and Disney’s instantly popular $7-a-month option.

In spite of all this, future is unkwn and it’s unlikely to be a smooth road for Netflix. NBC, HBO, and startup Quibi are all planning to launch new streaming services soon. Netflix CEO Reed Hastings ackwledged increased competition in a call following earnings but said he believes services are mostly capturing new viewers who are transitioning from traditional TV watching.

“It takes away a little bit from us,” he said of Disney Plus launch. “But again, most of growth in future is coming out of linear TV.”

Netflix’s most popular subscription plan comes at price of $13 a month, far more than competitors from Disney, Apple, and Quibi. But its price is comparable to HBO w, and it boasts one of largest libraries of TV shows and movies, t to mention regularly updated original shows.

(With inputs / photo from AP)