Netflix (NFLX - Get Report) suddenly has two more, rather powerful, competitors than it used to, but it doesn't appear to mind the company. 

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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.  

"Both companies are world-class consumer brands and we're excited to compete; the clear beneficiaries will be content creators and consumers who will reap the rewards of many companies vying to provide a great video experience for audiences," the company wrote. "We don't anticipate that these new entrants will materially affect our growth because the transition from linear to on demand entertainment is so massive and because of the differing nature of our content offerings."
 
Unlike Netflix, Disney+ is a family-friendly content service that features brands such as Pixar, Star Wars, the Disney Channel and NatGeo. Meanwhile, Apple hopes to leverage its installed base of 1.4 billion to drum up interest in its TV+ originals.
 
But Netflix isn't concerned that either will chip away at its market share -- rather, it seems to feel there's room for multiple players, and likened the rise of direct-to-consumer streaming to the the years-long ascendance of cable networks several decades ago. 
 
"We believe we'll all continue to grow as we each invest more in content and improve our service and as consumers continue to migrate away from linear viewing (similar to how US cable networks collectively grew for years as viewing shifted from broadcast networks during the 1980s and 1990s). We believe there is vast demand for watching great TV and movies and Netflix only satisfies a small portion of that demand," the company wrote.
 
On an earnings broadcast with investors, Netflix CEO Reed Hastings said that while Apple and Disney will make formidable peers in the streaming world, the new competition is a drop in the bucket in the broader scheme of entertainment options, which encompasses everything from live sports to Fortnite and more. 

"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." 

 
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