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Netflix Growth Slows As Consumers Make Way For Disney+

Netflix is still growing, but at a slower pace as the company braces for the arrival of Disney+, one of the biggest competitors to enter the streaming market in years. The company has been preparing for the arrival of Disney+ over the last couple of years, expanding on its library of original shows and movies to keep people from dumping the service in favor of Disney+, which arrives early next month. Netflix growth slows overall, though, after it announced that it would be increasing its membership fees.

Netflix released its third quarter information to shareholders recently. The information revealed that the company is seeing growth slowing down, as well a significant loss in US subscribers for the first time since the streaming service launched back in 2007. The company expected to gain as many as 800,000 domestic subscribers and 7 million international subscribers in the third quarter, particularly because Stranger Things—its most lucrative original series—released a new season. Numbers were lower than expected, bringing in only 517,000 subscribers within the United States and 6.8 million internationally.

‘Streaming Wars’ Trigger Change For Netflix

Netflix, however, is not worried about the influx of new streaming giants set to enter the industry within the next year. While new streaming services make up a large portion of Netflix’s upcoming problems, the streaming giant assures that it has what it takes to stand out against companies like Disney and Apple as they prepare to launch their own platforms. Disney, which is about to launch Disney+ in November, makes up the largest, if not most threatening, of the upcoming streaming giants.

“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,” said Netflix in a letter to shareholders when it released its Q3 data earlier this month. The company saw a rise in profits from last year from $403 million to $605 million in the third quarter, but overall the number represents a slowed level of growth just after the company announced it would be increasing prices for its subscribers.

Other New Competition

NBCUniversal and AT&T are also looking to expand their respective streaming services. NBC, which will release Peacock sometime in 2020 and HBO Max, respectively. Netflix, however, seems confident that its vast library of diverse content will give it the advantage that it needs in order to not only maintain its current subscriber count, but see growth in the coming years. Disney+ may have a vast library of Disney content, but Netflix carries the widest genre variety and a steady income of both movies and new shows, as original content and as a host for other entertainment houses.

“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,” said Netflix in a letter to shareholders when it released its Q3 data earlier this month. The company saw a rise in profits from last year from $403 million to $605 million in the third quarter, but overall the number represents a slowed level of growth just after the company announced it would be increasing prices for its subscribers.