How Competition Will Affect Netflix



The streaming business is likely to see intense competition

The video streaming business is getting more competitive every day. Netflix said it’s aware of the competition from AT&T’s (T) Warner Media, Disney, and Apple, which are planning to have their own subscription services that offer original programming.

Netflix (NFLX) already competes with Hulu, HBO, and Amazon, which has deep pockets.

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Netflix’s growth might not be meaningfully affected by competition

The United States Department of Justice gave a green light to the AT&T–Time Warner merger, a transaction aimed at sharpening the carrier’s edge in the content industry.

The Walt Disney Company (DIS) acquired key assets of Twenty-First Century Fox, including its stake in Hulu. That could help Disney’s efforts to launch its own streaming site next year. Disney is also stripping its content from Netflix.

While these streaming services will give customers a number of good choices, it might not do a lot of damage to Netflix’s subscriber growth, given the service’s content scale and its cheap pricing and loyalty.

Many viewers have subscriptions to more than one streaming service. But Netflix warned that eventually, streaming companies will have to battle for the same consumer dollars.


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