Netflix’s 4Q17 results
Streaming giant Netflix (NFLX) had another stellar quarter as it reported its 4Q17 earnings. In 4Q17, Netflix added 8.3 million subscribers, which is the highest net addition the company has ever seen. The company has nearly 118.0 million paid subscribers worldwide.
Netflix’s stock price has hit new all-time highs, having already soared 36.0% year-to-date. While the core health of the company seems to be good, Netflix does have some challenges.
Disney’s new streaming service could challenge Netflix
After releasing its 4Q17 results, Netflix (NFLX) mentioned several competitors in its report, including Amazon’s Prime Video, Google’s YouTube, and Disney (DIS). The company also mentioned Apple (AAPL) and Facebook (FB) in the same section.
Apple and Facebook recently entered the original content space, wielding relatively large budgets. Meanwhile, Disney has severed ties with Netflix, as it’s creating its in-house streaming service.
Starting in 2019, Netflix won’t be able to show Disney movies. If Disney is able to finish its intended $52.0 billion acquisition of 21st Century Fox’s (FOX) assets, it could make a formidable push into content, challenging Netflix’s pole position.