Despite increasing competition in the online streaming market, Netflix continues to perform strongly, adding 8.8 million subscribers in the fourth quarter of 2019—surpassing its projected 7.6 million.
The company’s latest earnings report reveals a global paid membership of 167 million, with over 100 million outside the United States.
Financially, Netflix reported $5.47 billion in revenue and an earnings per share (EPS) of $1.30, both exceeding expectations.
Navigating the Streaming Wars
The end of 2019 saw heightened competition with the launches of Disney+ and Apple TV+, and 2020 promises even tougher rivalry with the upcoming debuts of WarnerMedia’s HBOMax and NBCUniversal’s Peacock.
Yet, Netflix remains unfazed, as reflected in its robust results.
In a letter to shareholders, the company noted ample growth potential for multiple services as traditional TV declines, with viewing per membership increasing globally and in the US compared to the previous year.
Confidence in Original Content
Netflix highlighted the popularity of its original series, “The Witcher,” which outperformed Disney+’s “Mandalorian,” Apple TV+’s “Morning Show,” and Amazon’s “Jack Ryan” on Google Search Trends.
Despite Disney+ being available in select countries, Netflix argued its lead would hold even with global rollout, suggesting a collective shift from linear TV rather than direct competition.
“The likely outcome from new services will accelerate the move from linear TV to on-demand entertainment,” Netflix stated, drawing parallels to how cable networks like TBS and ESPN grew without cannibalizing each other’s audiences in the past.
