May 9, 2025 International Trending News Stories

Netflix gains new customers – but the major streaming attack is imminent

Reliable financial statements, uncertain outlook: The streaming market leader Netflix did surprisingly well in the fourth quarter thanks to series and movie hits such as “The Witcher” and “The Irishman.” But in 2020, the top dog must fear the competition from Walt Disney and Apple.
But the big challenge is only just beginning with the attack by financially secure rivals such as Hollywood giant Walt Disney or iPhone giant Apple. The intense competition is already making itself felt on the US home market – suddenly, a whole series of new rivals are chasing Netflix.

In the letter to the shareholders, Netflix shows itself to be combative. “We have a big lead in streaming, and we will build on that by focusing on what we have been focusing on for the last 22 years – satisfying our customers”. However, CFO Spencer Neumann admitted during a conference call after the presentation of the balance sheet that there had already been a slightly increased churn rate of customers due to Netflix’s intensified competition and comparatively high prices.

Netflix gains new customers and exceeds expectations

Overall, however, business is still running very smoothly: In the final quarter, Netflix attracted a surprisingly large number of new customers. The number of paid subscriptions rose by 8.8 million worldwide in the three months to the end of December, as the online video service announced on Tuesday after the US stock market closed. Netflix thus exceeded its forecast and also market expectations. By the end of 2019, the company had a good 167 million paid memberships.

However, Netflix is still struggling in the US home market, where Disney and Apple have recently launched streaming services. Here, only 423,000 subscription customers were added in the fourth quarter. This was significantly less than expected, which briefly depressed the share price in the post-trading period, even though the share price quickly turned positive again. All in all, Netflix on Wall Street has not been a high-flyer for quite some time now – last year’s US stock market rally passed the streaming king from Los Gatos in California by.

Netflix prepares for weaker times

The outlook for the current quarter makes it clear that Netflix is preparing for periods of weaker growth. The company is forecasting global growth of seven million customers – significantly less than analysts had expected. By comparison, 8.9 million new subscribers were added in the first quarter of 2019. The problem: The US market is now relatively saturated. Also, new competitors such as Disney, Apple, Viacom, and Comcast, as well as established rivals such as Amazon and Hulu Netflix, are undercutting Netflix prices with their streaming services – in some cases considerably.

But nobody should underestimate the market leader. Thus, profit and sales in the final quarter surprised positively. Netflix achieved a surplus of 587 million dollars (530 million euros), whereas the company had earned only 134 million in the corresponding period of the previous year. Revenues grew to 5.5 billion dollars – a significant increase of 31 percent year-on-year. The company, which once set new standards in online TV with series such as “House of Cards,” still sets the pace often enough with its content.

Just last week, 24 Netflix productions received Oscar nominations, meaning that the streaming service outperformed all other studios. Last year, Netflix had already made it into the prestigious “Best Film” category for the first time with the black and white film “Roma” by Mexican Alfonso Cuarón. This year the company has double chances in this coveted category with “The Irishman” and “Marriage Story.”

But to keep the competition at bay, Netflix also digs deep into its pockets. Last year, the company spent a production budget of 15 billion dollars, and by 2020, even more could be spent. But even with all that money, not everything can be bought. Netflix has lost the rights to two of its most popular shows – “Friends” will run on its arch-rival HBO and “The Office” will run on the new Comcast service Peacock from 2021.

Related Posts

Between Banks and Finance Influencers, This Is How Investing Coach Vittorio Rigato Is Redefining the Term Investment and Financial Freedom

January 25, 2023

January 25, 2023

Over the years, the way the world structures its financial axis has changed drastically. Between the pandemic, recession, and sustained...

The Inspirational Journey of Dr. Lyn Corbett, Leadership Development Coach

February 14, 2023

February 14, 2023

Dr. Lyn Corbett is the President of The Pivotal Group Consultants Inc._– a consulting firm based in California. To strengthen...

Founding Father of SEO Bruce Clay is Still Making Waves in the Digital World

April 9, 2023

April 9, 2023

Bruce Clay, considered the founding father of search engine optimization (SEO), has been making waves in the digital world for...

Relationships Require Work, or Do They? Lion Has the Answers

July 19, 2022

July 19, 2022

Anyone who has been in a committed relationship knows how things require work. That work is about being honest, opening...

Overcoming Barriers and Tackling Mental Health: Kai Lanier is the Living Example of Resistance and Resilience

January 24, 2023

January 24, 2023

From being nothing and having zero followers to being an uprising social media influencer with a community of half a...

Beauty Industry Mogul, Ludmila Padre Cardoso Reminisces about Her Transition Into The Business World

August 25, 2023

August 25, 2023

Many people are stepping into the business world to fulfill their goals and objectives. The business industry allows people to...

7 Effective Entrepreneurial Skills for a Successful Fashion Career

March 1, 2023

March 1, 2023

Fashion entrepreneurship is a vital industry component in many ways. The market requires business leaders who understand what consumers want...

Get Wander-Fully Lost With Mikaela Janalyn as She Travels With Style

July 5, 2022

July 5, 2022

The best travel blogs on the internet offer amazing travel tips, photography, and video content. Some of the best bloggers...

How Bill Garbarini Is Helping Revolutionize the Fertility Business

May 1, 2023

May 1, 2023

Thanks to the well-known mover and shaker Bill Garbarini, IVF health care is taking a new turn. With his profound...

Matthew Peach and Mike Madigan’s M-1 Studios: Your One-Stop-Shop for Script-to-Screen Business Video Productions

July 20, 2023

July 20, 2023

In this digital age, video content has become a key ingredient to promoting businesses, their services, and audience engagement in...

“I’m Thankful That God Is a Promise Keeper” –Physician and Content Creator, Tashinea Bernadin on Her Infertility Journey

May 8, 2023

May 8, 2023

“I’m Thankful That God Is a Promise Keeper” –Physician and Content Creator, Tashinea Bernadin on Her Infertility Journey  The infertility...

Loa Blasucci on Self-Healing through Biofield Purification Technique

April 2, 2024

April 2, 2024

In a world where the clock ticks relentlessly and the pressures of modern life weigh heavily upon us, the quest...

The Resonating Power of Susan Darvishi: A Rising Star in the Global Music Scene

June 27, 2023

June 27, 2023

“Those who danced were thought insane by those who couldn’t hear the music,” Friedrich Nietzsche once remarked, beautifully capturing music’s...

How Content Creator Charles Thompson Has Become an Inspiration to Young People

March 28, 2022

March 28, 2022

Content creation is a modern way to educate, entertain, and inspire audiences in the digital era. Content creation has various...

How Seyi and Abisola Shof, a US-Based Nigerian Couple, Are Setting An Example For Struggling Couples

January 22, 2023

January 22, 2023

Marriages are not always rainbows and butterflies and there are going to be good and bad days. Many people find...