Netflix added record number of subscribers, but warns of tougher times ahead

Disney+ Confirms Vision and Scarlet Witch, What If?, And More Marvel Shows

This fall, there will be two more high-profile streaming services vying for your hard-earned dollars in addition to Netflix, Hulu, and Amazon Prime: Disney+ and Apple TV+.

Despite an overall healthy earnings report, Netflix's stock saw a steep nosedive-falling as much as 5%.

"What's making investors nervous is that there are signs of a slowdown in the second-quarter subscriber growth", said Haris Anwar, senior analyst at Investing.com.

Netflix added 28.62 million paid subscribers past year, a record, while spending more than $7 billion on programming, also a new high.

Netflix shares have fallen around 5.5 percent since the Disney analyst meeting where the media giant announced a $6.99 per month offering that would compete directly with Netflix's core business.

Netflix's results come after it announced a $2 price increase to $13 a month for USA subscribers, its largest audience.

Total revenue rose to US$4.52-billion from US$3.7-billion.

"There is some concern that real competition is entering the market, but Netflix is still a good proxy for investor risk appetite, especially for technology", said Joel Kulina, Senior Vice President of Institutional Cash Equities at Wedbush Securities. The streaming service even brought in a weekly billing system that costs just 1,625 won per week. AT&T Inc's WarnerMedia and Comcast Corp plan to move into the streaming market. "After all, they are a tech company at heart and have enormous power with the data they capture on their millions of subscribers, which helps them design what original content to create".

While Netflix declines to gives country-by-country specifics, Western Europe and Latin America have supplied most of its recent growth.

"We believe we'll all continue to grow as we each invest more in content and improve our service and as consumers continue to migrate away from linear viewing (similar to how United States cable networks collectively grew for years as viewing shifted from broadcast networks during the 1980s and 1990s)", the company said. The $6.99 per month price point won't hurt either.

The purchase of Fox has given Disney a wide variety of content that already has a built-in audience, and Disney+ will be the new home for audiences to catch tons of movies and TV shows, as well as new projects based on existing properties from the Fox library. Hulu, which is controlled by Disney, Comcast, and AT&T, had 25 million U.S. subscribers in 2018.

The service will also be the exclusive home to 30 seasons of "The Simpsons" - TV's longest running prime time scripted series.

The company burned through $3 billion in 2018 to pay for hit originals such as "Birdbox" and "Ozark". Last week, Walt Disney Co. unveiled plans for its kid-friendly online platform, which will cost several dollars less than Netflix. "We're quite bullish on that and we'll see how it does", he said.

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