Netflix is, by a wide margin, the king of the streaming game right now with more than 150 million subscribers worldwide. But the marketplace is about to get a big shakeup with Disney+ and Apple TV+ set to launch in November. Both services have high-profile content from A-list creators, as well as impressive library content. Not to mention attractive price points. So, does Netflix have anything to worry about?
According to the results of a new survey, not really. The survey was conducted by Piper Jaffray, who gauged the interest from about 1,500 current Netflix subscribers in Disney+ or Apple TV+. Only 28 percent of those surveyed intend to subscribe to Disney+, while just 23 percent intend to sign up for Apple TV+. Michael Olson, an analyst at Piper Jaffray, had this to say about it.
"Our survey suggests that the majority (~75%) of Netflix subscribers do not intend to subscribe to either Disney+ or Apple TV+. For those that do expect to use one of these offerings, the vast majority expect to also maintain their Netflix subscription."
For many, Netflix has become an afterthought of an expense, even with the recent price hike. Netflix's most popular plan now costs $12.99 per month. There has been growing chatter in the industry that the onslaught of streaming services on the way, which also includes HBO Max and NBC's Peacock, could cut into Netflix's market share. On the contrary, as Michael Olson explains, most people are expecting to subscribe to multiple services.
"Most existing Netflix subscribers appear to be trending towards multiple streaming video subscriptions, especially as many continue to reduce their spend on traditional TV offerings."
Disney+ launches on November 12 and will run $6.99 per month, or $69.99 annually. Apple TV+, meanwhile, arrives on November 1 and is set at just $4.99 per month. Both companies seem to understand that competing with Netflix full-stop could be a fool's errand, given their spending ability and sheer volume of content. But can they offer an attractive supplemental streaming package at a relatively low price? That seems to be the bet. Disney will have the power of Star Wars, Marvel, Pixar and a host of other attractive IP at its disposal. Apple is leaning on key creatives, such as J.J. Abrams, Steven Spielberg, M. Night Shyamalan and Oprah Winfrey to attract subscribers.
Still, Netflix has a tough road ahead. The company's stock has taken a steep dive this year following missed projections, in terms of subscriber growth, in the last quarter. Analysts have also raised concerns over the increasing prices. While competition certainly doesn't seem like it will be beneficial to Netflix, it also doesn't seem to be a nail in the coffin by any means either. Granted, it's just one survey, but it is hard to imagine people bailing on all that Netflix has to offer for either of these services. This news comes to us via CNBC.