(Reuters) - Netflix Inc added more paying subscribers than Wall Street expected in the fourth quarter as it faced new competition from lower-cost services from Walt Disney Co and Apple Inc for the first time in the streaming video wars.
The streaming media leader said it added 8.76 million paid global subscribers in the fourth quarter, boosted by strong releases that included a new season of royal drama “The Crown” and two films nominated for Best Picture Oscars. It beat the 7.6 million average expectation of analysts, according to IBES data from Refinitiv - the same growth Netflix forecast for the quarter.
Netflix shares were flat in after-hours trading on Tuesday.
The Disney+ service launched in the United States and Canada on Nov. 12 for $7 per month and $13 a month for a bundle with ESPN+ and Hulu; it reached 10 million sign-ups on its first day. Apple TV+ launched Nov. 1 for $5 per month and is free for one year with the purchase of some Apple devices: its performance has been harder to define. AT&T-owner WarnerMedia’s HBO Max will cost $15 per month when it launches in May.
Netflix is available in over 190 countries; its standard U.S. plan costs $13 per month.
The company acknowledged that competitive pressure would have an impact on its U.S. business, where subscriber growth fell short of analyst estimates.
Netflix on Tuesday said it expects to add 7 million subscribers globally in the first quarter, below analysts’ average of 8.82 million, according to IBES data from Refinitiv.
“We have a big headstart in streaming and will work to build on that by focusing on
