It's been a tough few months for Netflix. Back in July the streaming giant announced that, for the first time in history, it had posted a loss in subscribers over the course of a quarter. The stocks for the company also took a pretty big hit when Disney rolled out plans for the affordable and ambitious Disney+ streaming service, which is sure to become the biggest competitor for Netflix sooner rather than later. Fortunately, things are now trending in the right direction for Netflix, thanks to an increase in downloads for its app.
According to a new report from Bloomberg, Netflix shares gained as much as 3.9% on Monday following a report from Bank of America regarding the streamer's spike in downloads. The report, based on data from SensorTower, stated that Q3 downloads are up 30% on a sequential basis and up 18% year over year. Downloads in the Unites States were up 13% while the rest of the world posted a 34% spike.
The initial report from Bank of America notes that the rise in downloads was likely due to the release of Stranger Things Season 3 on July 4th, in addition to some other popular content.0comments
This could bode well for Netflix heading into the launch of Disney+ on November 12th, which will arrive at just $6.99 per month, around half the price of Netflix's most popular plan. The launch of the new service is also resulting in Disney's steady removal of its current content on Netflix. Marvel, Pixar, Disney, and Star Wars movies streaming on Netflix are all in the process of being removed and will eventually have a permanent home on Disney+.
When Disney presented its streaming service plans back in April, Netflix stock saw a 2% drop the following morning. There's no telling what kind of impact Disney+ will have on Netflix once it actually goes live in November.