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In an earnings release posted Tuesday, the streaming giant topped estimates on new paid subscribers, both domestically and internationally, but offered light second quarter guidance, estimating it will add 5 million new subscribers versus the 5.5 million expected by analysts. Netflix shares dropped sharply as much as 5.69% in after-hours trading before recovering most of those losses.
But if there's a burning question around Netflix's earnings, it's what the arrival of Disney+, as well as Apple's TV+ service, will mean for Netflix.
To paraphrase the "competition" section of Netflix's first quarter letter to shareholders: "A rising tide lifts all boats." Disney (DIS - Get Report) unveiled its $6.99 Disney+ subscription last week, and Apple (AAPL - Get Report) announced its yet-to-be-priced TV+ in late March.
"Great competitions makes you better; we're thrilled to have Apple and Disney in," Hastings said. "On a practical basis, there's already so much competition out there. Apple and Disney add a little bit more, but frankly I don't think it will be material."