Competition Mounts and Netflix Does Fine
Netflix (NASDAQ: NFLX) passed a big test with its fourth-quarter earnings report last week. The company is confronting more intense competition, most notably from Walt Disney and Apple. In the United States, where the effects of new competing services were felt most keenly, the number of Netflix subscribers grew 420,000 in the fourth quarter.
Combining the U.S. and Canada, there were 550,000 additions in the quarter . This is lower than the 1.75 million new subscribers in the year-ago period, and management placed part of the blame on the increased competition (along with price increases). Nonetheless, it is noteworthy that there was subscriber growth in the U.S. and Canada.
The subscription growth comes after the heralded Disney+ came to market in November , with its wide-ranging Disney content (including Pixar, Marvel, and Star Wars franchises) for $6.99 per month or a combined Disney+, ESPN, and Hulu subscription price of $12.99 .This is competitive with Netflix's three plans, which range from $8.99 to $15.99 per month. Apple TV+ was also launched in November at an introductory $4.99 monthly rate.
Source Fool.com
