Netflix has beat estimates in its first quarterly earnings for 2019 revealing revenue of $4.52bn on an expected $4.5bn. The company said it was not worried about the entrance of new streaming players such as Apple and Disney.
The company added nearly 10 million subscribers in 1Q19, the highest number of quarterly paid net adds in the company's history, the majority of which came from international territories in which Netflix has been investing in and creating a large amount of original content.
Disney's and Apple's proposed TV streaming offerings have received a lot of media attention of late. Disney recently revealed a pricing structure of $6.99 a month or $69.99 annually – undercutting Netflix's price – and Apple has signed up big names such as Oprah Winfrey and Steven Spielberg to create original content for its streaming platform. However, while Netflix has acknowledged that the two competitors are "world class brands", it said it was "excited to compete" and was not worried that the new streaming platforms would steal subscribers or impact Netflix's growth.
"We don't anticipate that these new entrants will materially affect our growth because the transition from linear to on demand entertainment is so massive and because of the differing nature of our content offerings," Netflix wrote in its letter to shareholders, comparing the shift from linear viewing to streaming to that from broadcast to cable in the 1980s and 1990s.
"We believe there is vast demand for watching great TV and movies and Netflix only satisfies a small portion of that demand," the streaming giant added.