Netflix 2020 outlook tougher than 2019 as Disney+ gains traction
Netflix started the year struggling as increased level of competition dominated the streaming market. Such is expected to give the online streaming service a tougher year than 2019.
Global growth aided the streaming video service from underperformance as it boosted far above expectations in the last quarter of 2019.
However, the company recognized tighter market competition and its ramification in the United States, as growth were far from Wall Street targets. In line, rival companies will soon be accessible across the globe with Disney+ planning to launch service in European zone this March.
Walt Disney Co and Apple Inc are in close competition of acquiring streaming clients as Netflix disclosed expectation of gaining 7 million subscribers internationally in the first quarter. Outlook is marginally lower than analysts’ expectation of 8.82 million.
The company has endured issues with an intention of dismissing competition as it previously called the video game Fortnite a rival rather than acknowledging other streaming companies. It took some time for Netflix to assess why Disney will only have minimal effect on its growth outside the United States.