Netflix on Tuesday announced its Q1 2019 earnings, reporting $4.5 billion in revenue, up 22.2 percent year-over-year. The streaming giant told investors it’s not worried about competition from new streaming services coming from Apple and Disney.
The #1 streaming video service says Apple and Disney are “world class consumer brands” and it’s excited to be competing with them.
Recently, Apple and Disney each unveiled their direct-to-consumer subscription video services. Both companies are world class consumer brands and we’re excited to compete; the clear beneficiaries will be content creators and consumers who will reap the rewards of many companies vying to provide a great video experience for audiences.
The firm is optimistic when it comes to growth, saying it doesn’t anticipate the new services will materially affect their growth, due to the differences in content offerings and the massive opportunity in the streaming business. Netflix compares the situation to the U.S. cable industry in the 1980s.
We believe we’ll all continue to grow as we each invest more in content and improve our service and as consumers continue to migrate away from linear viewing (similar to how US cable networks collectively grew for years as viewing shifted from broadcast networks during the 1980s and 1990s).
Netflix says that there is a “vast demand for watching great TV and movies,” and says its service is only satisfying “a small portion of that demand.”
Apple announced its upcoming Apple TV+ streaming service last month. The new service will act as the home for the company’s original TV series and movies. Disney announced details of its Disney+ streaming service last week. The new $6.99 per month service will launch in November, and will feature the entertainment giant’s full catalog of movies and shows.