Netflix CEO Reed Hastings isn’t worried about Disney+ or Apple TV+.
Netflix’s premise is based in the belief that consumers will continue to “migrate away from linear viewing, similar to how US cable networks collectively grew for years as viewing shifted from broadcast networks during the 1980s and 1990s.”
The company notes that time spent on Netflix still makes up only about 10% of total TV watching and just 2% of mobile viewing, according to networking equipment company Sandvine.
Netflix’s strategy has been to offer a linear streaming service filled with both original content and licensed shows from other programmers. Netflix may spend up to $15 billion on content this year, according to some analyst estimates.
That far surpasses what Apple and Disney plan to spend on their streaming services. Disney said last week during its investor day that even by 2024, it still plans to spend only $2.5 billion a year on original programming for Disney+.
Netflix is counting on its larger offering to buffer it from competitive streaming services which may fill niches but won’t replace it.
Both Apple and Disney “are world class consumer brands and we’re excited to compete,” Netflix wrote. “The clear beneficiaries will be content creators and consumers who will reap the rewards of many companies vying to provide a great video experience for audiences.”
Netflix added 9.6 million paid customers in the first quarter, giving the company just shy of 150 million paid subscribers.
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