Netflix Stocks Hit a 9-Month Low After CEO Cites "Tough Competition" from Disney, Apple
Published Sep 20, 2019Once again, Netflix's stocks are taking a tumble. After losing $26 billion in value this summer, Netflix shares dropped as much as 7 percent on Friday (September 20), marking a nine-month low for the streaming hub.
The valuation hit came after Netflix CEO Reed Hastings commented that the upcoming November launches of both Disney+ and Apple TV+ will bring a "whole new world" of competition, Variety reports.
Hastings was speaking at Royal Television Society conference on Friday in the U.K., where he said, "While we've been competing with many people in the last decade, it's a whole new world starting in November… between Apple launching and Disney launching, and of course Amazon's ramping up."
He also made reference to NBCUniversal's newly announced Peacock streaming service, which will arrive in April 2020.
"It'll be tough competition," Hastings said. "Direct-to-consumer [customers] will have a lot of choice."
Adding to this, Hastings pointed out that production costs continue to climb, saying, "Someday The Crown will look like a bargain." The Netflix series has a reported budget of more than $100 million a season.
As the markets showed, all this talk gave investors some serious fear, taking Netflix's already-troubled shares down even lower. In late July, Netflix's shares sunk nearly 20 percent — translating to a loss of $26 billion USD in market value — in just six days.
As previously reported, Disney+ will launch in Canada on November 12, while Apple TV+ will arrive in Canada on November 1.