LOS GATOS, Calif. – Netflix had just recovered from an abrupt downturn sometime during the second quarter of this year, but now finds itself in a difficult position due to the rise of several competitors in the streaming market. These so-called Netflix-killers are shaping up to be the dominant players in the market, offering more compartmentalized streaming packages geared towards specific niches and tastes.
In Q2 of 2019, Netflix’s US subscriber base diminished sharply, something that had not happened in eight years. International growth, though stable in comparison, did not produce sufficiently lucrative results to meet the company’s growth projections.
Netflix’s Q3 earnings report, however, announced the company’s stability and fiscal well-being despite the losses incurred during Q2.
Netflix managed to recover its losses during Q2 entirely, ending up with a net gain of 400,000 subscribers to the 60.2 million it had at the start of Q1. International growth has been steady, as well.
At present, Netflix remains ahead of its contemporaries, including Hulu and Amazon Prime Video, by a large margin.
Despite this recovery, Netflix remains beset by the question of whether or not it can stand up to upcoming competitors in the on-demand streaming market, particularly Disney, set to release its premium streaming service, Disney+, in the coming weeks.
Disney+ is slated to have a much smaller library than Netflix and will launch with even less than the full library. Yet what tech investors consider it to be one of the Netflix-killers for is its focused roster of content and low price point. The latter of the two is of particular interest, seeing as Netflix suffered its down spike in Q2 due to a price hike.
Disney+’s content library, which is expected to contain all of Disney’s in-house productions, supplemented by Marvel, Star Wars, and some Fox properties, have led investors to call it a streaming giant even before launch. With its lineup, it stands to be the strongest Netflix-killer to challenge Netflix’s position at the top of the market.
Cord cutting streaming services such as Disney+ are shaping up to be formidable challengers for Netflix’s domination of the market, but one thing investors are banking on is Netflix’s international growth. Given enough time, they insist, it could shore up any losses incurred from subscribers moving to Disney+ when it releases.