Netflix forecasts tough start to 2020; Disney+ going global | The Daily Star
12:00 AM, January 23, 2020 / LAST MODIFIED: 01:14 PM, January 23, 2020

Netflix forecasts tough start to 2020; Disney+ going global

Netflix Inc has entered a new year that will be far tougher than the one it left behind.

International growth helped the streaming video service trounce expectations in the last quarter of 2019. But the company acknowledged competition had an impact in the United States, where growth missed Wall Street targets - and that competition will become more global as the Disney+ service launches across Europe in March.

Rivals including Walt Disney Co and Apple Inc are now fighting for streaming customers, and Netflix said it expects to add 7 million subscribers globally in the first quarter, below analysts’ average of 8.82 million, according to IBES data from Refinitiv.

For a company that has historically taken great pains to avoid mentioning competitive forces - it once called the video game Fortnite a bigger rival than other streaming services - it spent a considerable amount of time explaining why Disney’s power will not have as damaging an effect on its engine of growth outside of America.

“Despite the big debut of Disney+ and the launch of Apple TV+, our viewing per membership grew both globally and in the US on a year over year basis, consistent with recent quarters,” the company wrote in a letter to investors.

Netflix Chief Executive Officer Reed Hastings described the fourth quarter’s 8.76 million net subscriber growth - boosted by a new season of royal drama “The Crown” and two films nominated for Best Picture Oscars - as “just amazing.”

That number beat Wall Street estimates for the fourth quarter, helping to send shares up 2.2% in volatile after-hours trading on Tuesday.

The Disney+ and Apple TV+ streaming services both launched in the United States in November. Disney+, which is also live in Canada, Australia and New Zealand, will launch in the U.K., France, Germany, Italy, Ireland, Spain, Austria and Switzerland on March 24. Apple TV+ is available in over 100 countries and regions.

The Disney+ service launched in the United States and Canada for $7 per month and $13 a month for a bundle with ESPN+ and Hulu; it reached 10 million sign-ups on its first day. Apple TV+ launched Nov. 1 for $5 per month and is free for one year with the purchase of some Apple devices: its performance has been harder to define. AT&T-owner WarnerMedia’s HBO Max will cost $15 per month when it launches in May.

Netflix is available in over 190 countries; its standard US plan costs $13 per month. Netflix has had an outsized impact on the pay TV landscape, changing the way that people consume TV and film and forcing media and tech companies to shift their business models. As streaming video has grown in the United States, the market has become more competitive, pushing Netflix to look overseas for growth.

Stay updated on the go with The Daily Star Android & iOS News App. Click here to download it for your device.

Grameenphone:
Type START <space> BR and send SMS it to 22222

Robi:
Type START <space> BR and send SMS it to 2222


Banglalink:
Type START <space> BR and send SMS it to 2225

Leave your comments

Top News

Top News

Top