The video streaming competition intensifies as Netflix approaches 200 million subscribers. Amazon and Disney+ are keeping pace.
Netflix recently confirms that it is on the roll to reaching 190 million subscribers before the end of the quarter. The company adds that it should be able to break the 200 million mark by the middle of the year. Many market analysts agree that competition will be stiff but Netflix might just come up on top.
Market data reveals that most people subscribe to about two streaming services. With Netflix having a commanding lead, many agree that the gap between the next competitor will continue to grow.
Netflix is comfortably leading the pack with one glaring advantage. The company has reached a critical mass of paying subscribers that its operating is already churning out revenue. On the other hand, the closest competitor is still struggling to reach the same number of subscribers.
— Nicole Junkermann (@NJFJunkermann) April 23, 2020
Experts estimate that Netflix should be able to close the year with $25 billion in revenue. This means that the company’s net income should be able to easily reach $300 million, The market currently values the company at around $188 million.
If trends are correct, the streaming giant only has one obvious weakness. In order to keep its subscribers into paying, the company must constantly release new and original content. New content means massive investment and this is churning out the company’s resources.
The race for third
By far, Netflix is clearly in the lead in terms of revenue, assets, and number of subscribers. Amazon is in the run-in with about 140 million subscribers. Although it is important to note that streaming is not Amazon’s main source of revenue.
The third place is currently up for grabs with smaller companies vying for a piece of the cake. Hulu is peering into third place with about 32 million subscribers. However, services like Disney+ are also taking the challenge with more than 50 million.
Disney might not be a clear challenger, but it does own a lot of franchises and assets. Among which are Pixar, and the highly successful and profitable Marvel and Star Wars franchises. Disney+ is also offering competitive pricing for just $6.99/month, the most affordable of the four.
Apple, with its Apple TV+ service, is also trying to make a break. While not as big as Netflix, the company can afford to lose resources as it challenges those who are on top.
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