Netflix Downplays Rivals But Admits Slowing US Growth
Netflix reports steady global subscriber growth for Q4 2019 despite new competition, but acknowledges a dramatic slowdown in the US market.
Netflix downplays concerns about rising competition in its Q4 2019 earnings report, highlighting that it adds 8.8 million global net subscribers. This number matches the previous year's performance and beats the company's own forecast of 7.6 million. The streaming giant insists that viewing per membership grows both globally and in the US, despite the high-profile launches of Disney+ and Apple TV+.
However, Netflix admits that growth in the US and Canada slows down dramatically as the company adds just 550,000 net subscribers in the region. Netflix directly attributes this drop to recent competitive launches in the US. Furthermore, the company projects only 7 million global net adds for the first quarter of 2020, citing slightly elevated customer churn levels as additional rivals like Peacock and HBO Max prepare to debut.
To argue that its original content still dominates the market, Netflix includes a Google search trends chart comparing its show "The Witcher" to rival programs. Critics view this comparison as clunky and desperate because it compares a global release to Disney+'s limited regional launch and an older show like Amazon's "Jack Ryan." As the streaming wars intensify, Netflix faces mounting pressure to prove it can maintain its market lead and lofty valuation against deep-pocketed media giants.