Netflix is not concerned about the arrival of Disney+ and HBO Max.
The subscription service declared its relaxed approach following the release of its third quarter earnings.
Netflix believes it’s in a good position to take on any newcomers, even those backed by Disney and AT&T.
The “noisy” Netflix competition
In a letter to shareholders Netflix described the arrival of the new services as “noisy.” Suggesting their impact is more bark than bite. Netflix did say it expects some pressure in the short-term, but the company sees long-term growth continuing “nicely.”
Further assuring shareholders, Netflix made a comparison between its Canadian and U.S. operations. Specifically focusing on how the growth has been similar over the years in the two regions.
The point being that as Hulu does’t operate in Canada, and in spite of its 30 million U.S. subscribers, it is not necessarily a Netflix competitor.
Netflix not concerned with the “streaming wars”
In the same letter, Netflix also brought up the topic of the “streaming wars,” noting how it’s not at war. Certainly not suddenly, anyway. With the streaming service explaining it’s been in competition with Amazon, Hulu and YouTube, as well as linear TV, for years.
If anything, Netflix still views linear TV as the real competition. Not just its competition, but the competition of all streaming services. As Netflix explained, “we are all small compared to linear TV,”
Netflix is not totally blind to the impact of the new services. The company did note the new arrivals are increased competition in the market sense. It just does not see the threat as one to itself, specifically.
Interestingly, Netflix did directly call out “Disney+, Apple TV, HBO Max, and Peacock.” At first, Netflix appeared to be complementing them by acknowledging they “have some great titles.” However, this was immediately followed up by “none have the variety, diversity and quality of new original programming that we are producing around the world.”
Needless to say, Netflix feels confident about the next few years. That’s likely in part helped by its latest results. Netflix reported positive earnings overall and appeared to bounce back from the previous quarter. Following those results, there was some suggestions this was a sign of things to come. Especially as those results came just months before Disney+ is due to launch. Disney had already confirmed Disney+ will launch on November 12.
Although, we did advise not to read too much into those numbers at the time.