Recently, both Disney and Apple have announced that their companies will be making forays into streaming services.
However, Netflix remains unconcerned.
Netflix CEO Reed Hastings announced that Netflix has had one of its biggest quarters to date, with first quarterly earnings for 2019 much higher than seen previously.
With the quarterly earnings issued in a report, Hastings and Spencer Neumann, Netflix’s chief financial officer, addressed the news from Disney and Apple. The report notes that Disney and Apple are both “world class consumer brands” and that Netflix is “excited to compete.”
It appears that neither Hastings nor Neumann is overly concerned with market saturation. Instead, they have noted that “on demand entertainment is so massive,” so perhaps there is no need to worry overmuch about competition.
Netflix is certainly only gaining more loyal subscribers. In last quarter alone, Netflix gained 10 million new subscribers — the “highest quarterly paid net adds in Netflix’s history.
And Netflix growth isn’t just contained to the U.S. Instead, the majority of new subscribers came from international territories, where Netflix creates original content for subscribers.
It seems to be working, as only 1.74 million people joined from the U.S., while 7.68 million people joined Netflix from abroad.
As to Netflix’s future marketing and growth plan, they believe “We’ll all continue to grow as we each invest more in content and improve our services and as consumers continue to migrate away from linear viewing.”
In the past, Disney was partnered with Netflix before deciding to end their relationship and pull all original content off of Netflix by 2019. In response, Hastings noted that Netflix has done “incredibly well” without input from Disney.
Due to Netflix’s meteoric rise, it really seems as though companies who choose not to work with Netflix stand more to lose than Netflix does.