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Netflix Increases Subscriber Numbers Despite Disney, Apple Threat

Netflix Increases Subscriber Numbers Despite Disney, Apple Threat
Despite reporting lower than expected number of new members for the third quarter of the current year, the United States video streaming company Netflix still reached an all time high for new subscribers for the quarter.
The company reported it had added 6.77 million new subscribers to its services compared to the 7 million that had been expected by the market. However the company continued to add on new subscribers despite threat from soon to be launched new streaming services from the likes of Disney and Apple.
The company also lost significant number of subscribers in the US after it had last raised its prices, the company stated in its earnings report. The company however justified its recent price hike in the statement arguing that "with more revenue, we'll continue to invest to improve our service to further strengthen our value proposition."
Analysts say that one effort from the company to convince its investors and one that stands out from its statement is its reassurance that the company is not very worried about the impending competition. Netflix is already operating in a competitive market with the likes of Amazon Prime and Hulu that are giving it a tough competition even before the launch of streaming services of Disney+ and Apple TV+ later this year. More competition is also being awaited from HBO Max and Peacock.
Arguing its case in the statement, Netflix stressed on a growth chart in Canada, which represents the penetration in broadband connected homes, and compared it with that of the US and claimed that there is hardly any impact on it by the services of Hulu.
The company is however also aware that it is necessary to cool down the nerves and concerns of investors stoked by more incoming competition. For example, it is most likely that consumers as well as investors would be comparing the library strength of Netflix – top to bottom, with those of the new market entrants such as the one from Disney, which has already dropped three hour trailers for the video it has.
The company in its earnings statement said that its "most watched season to date" was its flagship series Stranger Things as the content was watched by more than 64 million member households in just the first four weeks of its launch. The company also noted that it had expanded investment in non-English originals during the quarter.
Netflix is also set to face a price battle because the inaugural prices of the streaming services of Disney and Apple are lower. However Netflix feels that both the new entrants will take some time to match up to the wide range and number of items that are already present with it. it also believes that both the companies would also have to eventually increase subscription prices just like Netflix did in order to become profitable.

Christopher J. Mitchell

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