Netflix Inc expects 2020 to be much tougher than the previous year.
Global Leap Helps Video Streaming Exceed Expectations in Q4 and Wow Wall Street Experts.
Meeting the targets for the current year complicates the increase in competition. It is known that the global and ambitious Disney service will launch in Europe in the spring+.
In the US market, Netflix is already battling for consumer attention with Walt Disney and Apple. The company expects to gain 7 million new subscribers worldwide in the first quarter, below the analyst average of 8.82 million..
At the same time, the video service looks to the future with a positive attitude. According to company representatives, the computer game Fortnite is a bigger competitor for Netflix in the European market than Disney and Apple..
«Despite the successful debut of Disney + and Apple TV +, the number of views and subscribers is in line with our plans in both the global and American markets.», – the company said in a letter to investors.
Fourth quarter net subscriber growth was 8.76 million. During this period, the service released the sequels of several successful TV series, as well as two films nominated for an Oscar..
After the publication of the financial report, the company's shares jumped by 2.2%.
Disney + and Apple TV + streaming services launched in US in November. Disney +, also broadcasting in Canada, Australia and New Zealand, will launch in the UK, France, Germany, Italy, Ireland, Spain, Austria and Switzerland on March 24. Apple TV + is already available in over 100 countries and regions.
Netflix is available in over 190 countries. The company has had a huge impact on the streaming market by changing the way television and film products are consumed, thereby forcing media and tech companies to change their business models..
To expand its presence in the global market, the company has invested heavily in content in different languages.. 1.75 million new subscribers were connected in the Asia-Pacific region. Latin America Replenishes 2.04 Million New Subscribers Last Quarter.
As competitors pulled their content out of Netflix's repertoire, the company channeled money towards making original TV shows and films..
«The massive content and marketing budget of a streaming service can only be justified if the subscriber growth rate progresses regularly. If this process begins to lose speed, then this will certainly affect the price of the company's shares.», – by Haris Anwar, analyst at investing.com – yes.
Free ad-based counterparts such as Peacock and ViacomCBS could also undermine Netflix, Citigroup suggests.