Netflix CEO and founder Reed Hastings
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Netflix CEO Reed Hastings doesn’t seem too worried about the influx of competitors into the streaming industry.
A phenomenon that has been dubbed “the streaming wars” is a hot topic in the entertainment world. As Disney, NBC and WarnerMedia, among others, gear up to launch their own standalone streaming services, analysts have questioned if Netflix will take a hit.
Hastings said Wednesday these streaming wars are a good thing.
“The advantage of having something be catchy like ‘the streaming wars’ is that it draws more attention, and because of that, consumers shift more quickly from linear TV to streaming TV,” Hastings said during the company’s earnings call Wednesday.
After the company’s second quarter earning report Wednesday, shares of the company fell more than 10% as Netflix revealed global net adds of 2.7 million, well below its guidance of 5 million. Still, Netflix forecast 7 million global paid net adds for the next quarter.
The company blamed price hikes and a lackluster slate of new content for the lower-than-expected subscriber growth. However, Netflix has said that the third quarter’s content, including the recently released third season of “Stranger Things,” will help turn the tide.
Netflix has acknowledged it will soon lose two of its most-watched shows, “The Office” and “Friends,” but that not having these costly programs will free up the company’s budget and allow it to spend more on its own original content.
“I think everybody gets that people will subscribe to multiple [platforms],” Hastings said. “I’d wager that most Netflix employees are HBO subscribers. We love the content they do and that spurs us on to want to be even better.”
“Competition grows the industry,” he said.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.