With Apple TV+ expected to launch on November 1 and Disney+ breaking cover on November 12, one would imagine that this would put a lot of pressure on existing streaming providers, particularly Netflix. Well, it doesn’t appear to be the case as Netflix posted strong results for the third quarter of 2019 while even surpassing expert estimates.
In a letter to its shareholders, Netflix said – “The upcoming arrival of services like Disney+, Apple TV+, HBO Max, and Peacock is increased competition, but we are all small compared to linear TV. While the new competitors have some great titles (especially catalog titles), none have the variety, diversity, and quality of new original programming that we are producing around the world.”
In terms of quarterly performance, the company added 6.26 million international customers vs. 6.05 million expected, as per estimates by FactSet. Domestically, Netflix added 517,000 vs. 802,000 expected, so it’s clear that the surge in subscriber count is coming mostly from outside the U.S.
The essence of this letter is that Netflix expects customers to choose the platform for its exclusive content. The company remains hopeful that customers will stick to Netflix despite subscribing to other providers solely for the wide selection of movies and TV shows it offers.
Apple, on the other hand, is prepping for the release of Apple TV+ on November 1 with some exciting discounts and even a free subscription for new iOS device buyers this year. Other users will only have to pay $4.99 per month for the service which is much cheaper than rival offerings in the market today.
Are you excited for Apple TV+? Do you think you will use Apple TV+ and Netflix together? Let us know.