It is not without a certain irony that, of all things, a fearsome Monster ended the greatest horrors of Netflix. After the Streaming giant had to give its investors three months ago for the first time, a decline in the number of users in the home market, the United States, and the group was put under massive pressure, caused a turnaround in the teen Mystery series “Stranger Things” for a trend.
Overall the number of paid subscriptions in the three months to the end of September, in the world of 6.8 million. Thus, the group remained under the expectations, the forecast stood at seven million new users, overall, the market exceeded expectations but. The number of global subscribers to increase to 158 million. Netflix was able to increase sales by 31 percent to 5.25 billion U.S. dollars, profit of 665 million US dollars, also increased.
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For the coming Christmas quarter, the company expects 7.6 million new customers. Thus, the target is still well short of the 9.4 million new subscribers, which were issued in the “New York Times”, according to on Wall Street as the target.
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Whether at the end of so many new subscribers, it will show. Because if Netflix presents numbers the next Time his quarter, there are two powerful competitors: 1. November, Apple launched its own streaming service to Apple TV in more than 100 countries, on 12. November Disney comes out with his own platform, Disney+ at the Start.
Both of the competitors lure you in with competitive prices: Apple TV+ will cost € 4.99 per month, the buyer of a current device can try out the service in addition to a year free of charge. Disney+, which will initially be offered only in the United States, costs seven euros per month, but in addition to the well-known animation movies new high-profile Film and series productions from the “Star Wars” and Marvel universe.
The prices are put Netflix under pressure
Netflix Can offer new competitors the forehead, maybe even more of them to sell? Or device the Streaming pioneer under more pressure? Some experts believe that Netflix will remain because of the huge user base still is the market leader. The Analyst Haris Anwar is of a different opinion. Compared to the U.S. technology portal “The Verge”, he said: “In this environment, the stock looks vulnerable and I spot a possible positive price development of the question in view of the expected competition.” Above all, the cheap prices are a threat for Netflix, said the expert. In fact, Netflix is up to 15.99 euros per month more expensive than the two new competitors together.
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Netflix CEO Reed Hastings tried to dampen the expectations of investors. He was expecting a “tough competition”, once all the announced services are gone to the Start. But, of course, he believes in the own company: “Although some of the competitors have great titles, but none has the range, diversity and quality of in-house productions, as we can produce them around the world,” is Hastings self-aware.
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Similarly, it also sees Apple CEO Tim Cook. On the question of whether Netflix feel the announcement of its new service as a battle, replied Cook a few weeks ago, in the stern interview: “I think that the competition is afraid of us. The video section works differently: It is a question of whether Netflix wins and we lose. Or if we win and you lose. Many people use multiple services, and we are now trying to be one of them” (read here the entire Interview with Tim Cook).
“We don’t close every Deal, we chase”
will be the name of the Challenger also, Netflix currently produces more original content than the other companies. In the fourth quarter, Netflix builds especially on film productions, the most promising of the restart, Martin Scorsese’s “The Irishman” with Hollywood Stars Robert De Niro, Al Pacino and Joe Pesci.
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15 billion US dollars has taken Netflix this year, already in Hand to produce new content. To ensure this, you will have to give the company even more money to borrow. “Excellent content is expensive,” writes Reed Hastings to its investors. “We are not going to shy away, however before that to take brave steps if we believe that it will have a positive impact on our business.” You are not going to keep a cool head: “We close every Deal we chase. And we are not chasing every Deal that is on the table,” said Hastings.
With a message of promise, the group has Recently tried to keep Fans and investors at a bar: It will definitely be a fourth season of the Horror series, “Stranger Things” type. What time is left open to the group yet. However, it is clear that the Monster falter once again on the screen and Netflix will probably have to help once to get out of trouble.
sources: “The Verge”, “BBC”
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