Netflix now expects that subscriber growth will decline year-over-year in the usually strong fourth quarter and for the entire year, even with a strong slate of new shows.
Netflix Inc. has been dismissive of the anticipated impact of an onslaught of streaming competitors, but as a wave of well-financed streaming services from big-name companies is about to be unleashed, the tone from executives has changed.
“The launch of these new services will be noisy,” Netflix executives said in their quarterly letter to shareholders. “There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance.” “Fundamentally, it is more of the same,” Netflix Chief Executive Reed Hastings responded. “Disney is going to be a great competitor, Apple is just beginning, but they will probably have some great shows too. But again, all of us are competing with linear TV. We are all small relative to linear TV.
“We did well during the first decade of streaming,” executives wrote in closing out the “Competition” section of its quarterly letter. “We’re ready to compete to earn consumers’ attention and viewing.”
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