– 22 January 2020 – Business
- Home page
- Netflix reaches 167 million paying subscribers but keeps an eye on Disney and Apple
Netflix added 8.8 million new subscribers in the fourth quarter of 2019, surpassing 100 million internationally. On the other hand, its growth in the United States is lower than expected, mainly due to competition.
Netflix now has 167 million paying subscribers worldwide, up 8.76 million from three months ago, announced the subscription-based video-on-demand (SVOD) platform at the presentation of its fourth quarter 2019 results on January 22. This is 1.16 million more than it had estimated and represents a 20% growth over last year.
This is the first time that the multinational company has exceeded 100 million international subscribers, reaching 106.5 million.
Reed Hastings in Paris at Netflix France // Source: (Photo by Dominique Charriau/Netflix)
On the other hand, growth in the United States is slightly lower than expected: only 420,000 new paying subscribers (for a total of 61.04 million) compared with the 600,000 expected. “Our slow subscriber growth in Canada and the U.S. is likely due to our recent rate increases and the introduction of competing platforms,” conceded CEO Reed Hastings in his letter to shareholders. Netflix increased the cost of its overseas subscriptions in January 2019, which at the time was the largest increase in its history.
The month of November was indeed rich in competition, with the launch of two major SVOD platforms, Apple TV+ (November 1) and Disney+ (November 12). The company boasts 10 million subscribers in 24 hours.
However, Hastings said Netflix “is well ahead of the game,” having started well ahead of the others and having a much larger subscriber base than the others: “We will continue to do what we’ve been doing for 22 years: keep our subscribers happy. We believe that if we do it right, Netflix will continue to thrive. »
And to spike his competitors with a Google Trends graph (which gives Google’s search trends) around the world, to show that Internet users are more interested in his series (The Witcher) than in those of Amazon Prime Video (Jack Ryan), Apple TV+ (Morning Show) or Disney+ (The Mandalorian).
Note that AppleTV+ was launched in 150 countries at the same time, but Disney+ is due to expand in Europe on March 24th (including France).
Google Trends comparison of people’s interest in Google for different US series on different platforms // Source: A capture of Netflix in its Q4 2019 letter
Netflix also decided that this was the last time it would report results from the US separately: in the future, they will be grouped in the UCAN zone, which corresponds to approximately “90% US and 10% Canada,” Netflix said in the last quarter.
- Read: European Netflix subscribers earn on average less than US subscribers