Science & Technology

Netflix faces rising competition from Disney and Apple

In Q4 2019, the company’s revenue growth lowered to 4%, compared to 6.5% in Q3 

Netflix

Netflix faces rising competition from Disney and Apple. Source: freepik.com

GlobalData revealed that Netflix’s sentiments have been hit because of rising competition from Disney+ and Apple TV+, along with slow revenue growth. Besides, GlobalData’s Company Filing Analytics platform found that Netflix’s overall sentiment score decreased by 11% in the Q4 of 2019 compared to Q3 2019.

Along with that, Netflix’s domestic streaming segment faces severe pricing pressures. For example, Disney+ costs $7/month while Apple TV+ costs $5/month vs $9/month for Netflix’s economy plan.

What is more, Netflix’s subscriber gains were deflated by Disney+, which gained 26 million subscribers by the end of Q4 2019.

Due to the slow quarterly growth in domestic subscribers and rising price pressures, Netflix hasn’t changed its pricing strategy in its domestic streaming segment to limit the subscriber shift.

Netflix posted good results for Q4 2019 and the management is content, yet not too optimistic about future growth, as it continues to clash with Amazon Prime Video, the new Disney+ and Apple TV+ to gain subscribers. However, outside the US, Netflix has not seen a drastic impact from competition. Unlike the US, the company has followed a low price strategy to achieve customer traction in countries such as India, Indonesia, and Malaysia, which also ensured growth in its international subscriber base
Aurojyoti Bose, Lead Analyst at GlobalData

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