Netflix Says It’s Not Afraid of Apple TV+ or Disney+, This is Why

Streaming company says the market is big enough for all three tech & media giants

In their letter to shareholders today, Netflix said that they are “excited to compete” with Apple and Disney. “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​.”

Last week, Disney announced that their Disney+ streaming service would launch on November 12th at just $6.99 a month — compared to Netflix’s $13 monthly subscription. Starting with the 2019 theatrical slate, all Disney/Pixar/Marvel/Star Wars films will become exclusive to Disney+, many of those new releases and their library of films would have gone to Netflix as part of a distribution deal that started in 2016.

In late-March, Apple announced their Apple TV+ streaming service which will come in the Fall. While there was no pricing announced, it is expected that it may be free for those with Apple devices. The service will mix original programming and the ability to subscribe to other services through Apple like HBO and Showtime — similar to Amazon Channels. The company has already announced shows from Steven Spielberg (“Amazing Stories”), Oprah (“Oprah Book Club”), Reese Witherspoon, Jennifer Aniston, & Steve Carrell (“The Morning Show”), J.J. Abrams (“Little Voices”), Jason Momoa (“See”), and Kumail Nanjiani (“Little America”).

Netflix’s view is that the two companies will help the overalls streaming business increase the pie, rather than steal from their share. “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.”

While Netflix is the largest streamer their streaming hours in the US, “only represents roughly 10% of total TV usage.” Around the world, it’s estimated that they’re just 2% of global mobile internet traffic. With the company reaching 60 million U.S. subscribers this quarter, it is already in most U.S. households.