Netflix Outperforms Its Forecasts on Net Adds, Welcomes Disney Competition

​Netflix had 5.3 million net subscription streaming additions in Q3, significantly better than the 4.4 million net additions it predicted in its July forecast, the company said Monday in its quarterly letter to shareholders. Netflix had 850,000 net adds in Q3 in the U.S., outpacing its July forecast by 100,000. Internationally, the company had 4.45 million net adds, much better than the 3.65 million it predicted in July. For the past four years, Netflix has taken the long-term view “that we’re in the early stages of the worldwide, multi-decade transition from linear TV to internet entertainment,” the letter said. That transition recently has been “unfolding right before our eyes,” the company said, citing Disney’s announced plans to launch direct-to-consumer services for ESPN and its other brands and the international expansion of CBS All Access. The letter mentioned nothing about Disney's decision to pull its films from Netflix starting in 2019 (see 1709080027). Linear TV networks are “cutting down on scripted series” as online services like Netflix have “ramped up activity,” it said.