Netflix just released its results for Q3 in 2019 (PDF), showing that it added slightly fewer subscribers (6.77 million) than the 7 million it anticipated, while still notching an all-time record for the quarter.
The company cited lower retention rates in the US since its most recent price hike, and justifies with a statement that “With more revenue, we’ll continue to invest to improve our service to further strengthen our value proposition.”
The one thing the company’s investor letter seeks to convince people is that the problem isn’t competition, with the likes of Amazon Prime and Hulu already here ahead of Disney+ and Apple TV+ launching later this year.
Specifically, it pulled up a growth chart for Netflix in Canada (as measured by penetration in broadband-connected homes) to compare with the US to claim that Hulu’s impact on it doesn’t really exist.
With more competition incoming, soothing investor’s nerves will be key. When Disney is dropping three-hour trailers for the video it has, the Netflix library will be compared, top to bottom, with these new entrants.
It said that flagship series Stranger Things notched its “most-watched season to date” with 64 million member households watching in the first four weeks, and noted expanding investment in non-English originals.
