Netflix has been growing its subscriber base despite the ongoing Disney+ Loom
The foremost streaming network- Netflix in its latest report for the third quarter (Q3) ending September revealed that its subscription-based has seen yet another increase to the tune of 6.77 million, a little below the anticipated 7 million subscribers for Q3 2019. The latest number recorded by the company is also said to be an all-time record per quarter.
On the contrary, the company was not able to record so much retention rate in its local market- the US. While that was mostly a result of the recent price hike, the company also experienced the same in some other locations as well, although justifies the course with a statement that “With more revenue, we’ll continue to invest to improve our service to further strengthen our value proposition.”
That been said, Netflix is also curious about the high competition that is about to set into the streaming market towards the end of the year, with new entrants such as the recently launched Apple TV+, and the upcoming Disney+. In its address to investors, Netflix told that the problem is not the competition with top dogs, but soothing investor’s nerves.
Netflix plans to bank on time- the company told that both Disney and Apple are launching at lower prices, however, it will take a while before they can offer a wider range of items as it currently does- that, despite the many withdrawal of movies from its platform. Also, Netflix thinks offering a lower price for a start is a strategy to gain more subscribers, as the likes of Disney may be eventually forced to raise prices in the long run just like it did in order to be profitable.
Below is the video interview portion of Netflix’s earnings release.