Netflix has reported a revenue of more than $4.5 billion (£3.5 billion) in the first three months of the year, even as the number of competing services multiplies rapidly.
The video streaming service disclosed that it had enjoyed the highest quarterly net increase in paid subscribers of its history, despite the price increases in Mexico, Brazil, the United States, and parts of Europe.
However, its year-on-year growth rate of 22pc was lower as compared to the first half of last year, when it swelled by approximately 40pc. The shares jumped as much as 5pc today ahead of the results, then fell to just below the day’s opening price afterwards.
It comes after both Apple and Disney announced that they will also enter the video streaming business, which last week caused the shares of Disney to increase by 14pc and the shares of Netflix to drop by 6pc.
In its letter to its shareholders, Netflix called its rivals “world-class consumer brands” and said that it was excited to compete,” however, it said that its growth would not be affected because of its unique stable of content.
The company stated: “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.”
Disney Plus, which will be available in the United States starting November, is being marketed as a “family friendly” streaming service, hosting content from the own archive of Disney as well as its other properties such as Star Wars, Marvel, National Geographic, and Pixar.
Disney’s service will cost $6.99 percent month, $2 less a month as compared to the cheapest subscription of Netflix, whereas Reed Hastings, the chief executive officer of Netflix, has said that incremental price increases are necessary as the firm invests more money in its programmes.
Apple has said that it will be launching its Apple TV+ streaming service in the autumn and has not yet disclosed how much it will charge for its service.