At the moment Netflix could be considered one of the most popular streaming services. In fact, some would even go as far as to say that it is the best streaming service of the moment, especially since it managed to become a part of the popular culture as well.
We would’ve believed that Netflix got this far by outsmarting the competition, but it appears that Netflix doesn’t consider other streaming services the main competition. In fact, it appears that Fortnite is considered their biggest rival at the moment.
The earnings report
In the fourth-quarter earnings report, Netflix explained what its challenges are. “We earn consumer screen time, both mobile and television, away from a very broad set of competitors. We compete with (and lose to) ‘Fortnite’ more than HBO.” the quarterly earnings statement read.
In addition to that, it appears that the company focuses directly on the users’ needs. “Our growth is based on how good our experience is, compared to all the other screen time experiences from which consumers choose. Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members,” continued the report. It appeared that this is a strategy that worked for them, as by the end of last year, Netflix had 139 million subscribers and it had managed to increase its revenue by 35%.
This is not the first time Netflix mentions an unusual rival. In 2017 CEO Reed Hastings explained that they are competing with sleep. “You know, think about it, when you watch a show from Netflix and you get addicted to it, you stay up late at night. We’re competing with sleep, on the margin. And so, it’s a very large pool of time,” Hastings explained back then.
Nora Reynolds is a major in biology and a minor in Biological Basis of Behavior, writing about science in general. She also likes to try new gadgets and sports about the AI new era.