Next week, Netflix will report their Q4 earnings and total annual growth, with the company expecting a rise of 50 cents per share as original content and high subscription rates propel the video service into the new decade.
A growth of 50 cents per share also implies Netflix had a year-over-year growth of 70 percent, beating many estimates.
2019 was filled with new video subscription-based services flooding the market, with big corporations like Disney and Apple carving out their spot to compete with established platforms like Hulu, Amazon Prime and Netflix. Subscription rates have remained steady for most platforms, but many experts believe Netflix’s spot at the top will be at risk in the coming years.
Cracks in Netflix’s dominance are still expected to show with the Q4 earnings announcement. While the total subscriber rate continues to increase, the addition of paid subscribers is projected to be much lower than a year ago. New streaming competitors like Disney+ have also experienced unprecedented growth in their first months of launch, with the Disney app being one of the most downloaded apps of 2019.
For now, Netflix remains the company to beat by a wide margin. According to Statista’s Global Consumer Survey, 85 percent of respondents in the U.S. who pay for digital video content stated they pay for a Netflix subscription. The next closest service was Amazon Prime, trailing Netflix by a large 20 percent.
2020 will be an interesting year for Netflix, where the company can show investors it has either permanently solidified itself as the top video service for years to come or will succumb to larger competitors.