Netflix Internal Data Indicates Users Aren't Fleeing to New Rival Disney+
Although Netflix rival Disney+ gained 10 million subscribers within a day of its launch, customers did not mind paying for both OTT platforms, the report said.
Netflix has clarified that the company’s internal data suggests its users are not switching to its rival Walt Disney Co. and Apple Inc. for streaming videos. The debut of these streaming services has not made a major impact on the number of subscribers on Netflix. The same was shared in a report by Bloomberg, which received the data from a person who briefed on Netflix’s subscriber information as saying. The person who sought anonymity said that Netflix has not seen any major rise in customers opting out from Netflix following the launch of rival services by Walt Disney Co. and Apple Inc. The report mentioned Credit Suisse Group AG saying that external data from Google searches and market tracker Sensor Tower Inc. have confirmed that Netflix still holds a strong customer base and users are not switching from it. These measures are more centred on whether Netflix is adding more users, rather than losing out on the ones who are already using its services.
Disney+ has already got 10 million subscribers within days of its launch in North America, the report said. Customers did not mind paying both the $7 (approximately Rs 500) a month for Disney+ and $13 (approximately Rs 930) a month for Netflix, as they switch from cable and satellite packages to online streaming, Chief Executive Officer Reed Hastings was reported as saying. There is a possibility that most users will not opt-out for Netflix the moment they switch to Disney+. They may see the content before making up their mind on whether they need both or either of them.
The report also said that Netflix has added less number of customers than its earlier forecast in the last two quarters. Additionally, it may add lesser customers this year in total as compared to the last year, which may be a cause of concern for investors. Netflix offers its customers a variety of award-winning television shows, movies, animations, documentaries and others. Users can also download these services and can even watch them without advertisements. Netflix services can be watched on a smartphone, tablet, smart TV, laptop as well as a streaming device.