Video streaming platform Netflix said that it added nearly 9 million new subscribers during the fourth quarter of 2018, CNN reported.
The development came to the fore on Thursday.
The platform is approaching 150 million subscribers; it now has 139 million subscribers globally and expects to add another 8.9 million users in this quarter that ends in March, the report said.
However, the company stock was down about three percent in after-hours trading Thursday following the report.
Spencer Wang, Netflix'sVice President of Finance and Investor Relations did not state a content budget for 2019 but hinted that the company will be “spending more on content” going forward.
According to the report, there are many cash-rich rival companies which are planning to launch streaming services this year such as Apple, Disney and WarnerMedia, the parent company of CNN. And that’s not good news for Netflix as it recently hiked the pricesof its services. In other words, the streaming market is getting crowded.
“The latest price increase may slow domestic subscriber growth dramatically this year,”said Michael Pachter, an analyst with Wedbush. “Streaming options from Amazon and Hulu are now slightly more affordable than Netflix.”
But it may not be easy for new players to topple Netflix or slow its growth.
“In the US, we earn around 10percent of television screen time and less than that of mobile screen time,”Netflix said in its letter to shareholders.
“Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members,” the company said.
“I think about it really as us winning time away, entertainment time, from other activities,” Reed Hastings, Netflix’s CEO, said in the interview. “Instead of doing Xbox or Fortnite or YouTube or HBO or a long list, we want to win and provide a better experience.” Mr.Hastings was quoted as saying.