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Netflix Confident Disney+ Won't Be Competition, But Is That True?

Netflix Confident Disney+ Won't Be Competition, But Is That True?

While on other hand FactSet industry analysts surveyed revealed 5.48 million subscribers' growth during the same period.

Because of how different Apple TV+ and Disney+ will be in terms of content, Netflix isn't anxious that those competing services will impede it, saying that its streaming service only represents about 10% of total TV usage, so it still has a lot of room to grow.

"What's making investors nervous is that there are signs of a slowdown in the second-quarter subscriber growth", said Haris Anwar, senior analyst at Investing.com. "We're thrilled to have Disney and Apple in".

The company said the viewers would be able to watch its content on Disney+ after paying a subscription fee of Dollars 6.99 per month. This was likely because the company provided a less-than-ideal outlook for its next quarter's performance. Netflix launched a similar half-price mobile plan in Malaysia in November previous year.

"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", the Los Gatos-based streamer said.

Also consider even more niche streaming services like Criterion Collection that offers independent and classic foreign films.

As far as the competition, Netflix doesn't seem outwardly concerned about Disney+ or TV+, and expects all of them to grow as cord-cutting continues.

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A number Netflix expects to rise to 153.9 million by the end of the second quarter of 2019. The Disney+ service will launch in November. Now, many have made a decision to keep their content for their own services as Netflix and another tech giant, Amazon.com Inc., continue to lure new customers to streaming.

Of the record additions, the company reported 1.74 million U.S. streaming additions, substantially up on analyst expectation, while there were 7.86 million new global streaming additions.

While Disney+'s main advantage is its vast library of content, its price of US$6.99 is a "clear signal" that it is willing to compete with other existing streaming players in the market, Joseph said.

Similar to Netflix, Disney+ will be ad free and while some brands might see this as a challenge, Joseph said brands can still work around this through product placement, brand integration in content, strategic partnerships, events, social media and activation built around apps, content and their consumers.

This strategy has resulted in a tripling of debt in just two years, from US$3.36 billion in 2016 to US$10.36 billion in 2018.

It's been "a phenomenal start, " Hastings said on a call with analysts. Total revenue increased 22% year-on-year to $4.5 billion, while subscriber count grew 25% year-on-year.

The stakes have risen for Netflix Inc. since the last time the video-streaming pioneer reported earnings. Investors expected the streamer to achieve 57 cents per share ahead of results.