Shares of Netflix (NASDAQ:NFLX) fell sharply on Friday, declining 6% by 12:00 p.m. EDT. The stock's decline comes after the streaming TV company's CEO, Reed Hastings, admitted that competition is heating up.
The stock's decline extends a tough recent run for the stock. Shares are down about 25% over the past six months.
"While we've been competing with many people in the last decade, it's a whole new world starting in November," said Hastings in an interview with Variety. The CEO was referencing the new streaming services from Apple (NASDAQ:AAPL) and Walt Disney (NYSE:DIS) that are launching during the month, as well as Amazon's growing investment in the streaming space. Apple TV+ is launching on Nov. 1 and will cost $4.99 a month. Disney+ will launch on Nov. 12 and cost $6.99 a month. Both services are priced below Netflix's plans.
"It'll be tough competition. Direct-to-consumer [customers] will have a lot of choice," Hastings added.
To remain relevant amid intensifying competition, Netflix will "continue to hew closely to its core strategy of offering content for binge viewing, the phenomenon it helped create," Variety said.
Investors will get a glimpse of exactly how much impact Netflix expects this competition to have on the company when it reports its third-quarter results next month. In the quarterly update, management will provide guidance for its fourth quarter.