Netflix Says 'Fortnite' Is Tougher Competition Than HBO
With Netflix being a streaming service that mostly offers catch up series, old and new-ish films, and in-house productions, you'd imagine that live TV, new cinema releases, and other streaming platforms will be among its main competitors.
Yet in its latest financial report, the company explained how video game Fortnite is one of its major rivals, and a bigger threat than one of America's largest and most successful TV networks, HBO (HBO produces the popular Game of Thrones series and has its very own streaming service, for comparisons sake).
This statement came in a letter partnered with Netflix's Q4 results, as Games Industry reported. It explains how competition for "consumer screen time" comes from a "very broad set of competitors".
"We compete with (and lose to) Fortnite more than HBO," Netflix said. "When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time.
"There are thousands of competitors in this highly fragmented market vying to entertain consumers and low barriers to entry for those with great experiences.
"Our growth is based on how good our experience is, compared to all the other screen time experiences from which consumers choose."
I guess it makes sense; Fortnite's immense popularity, and consequential income, isn't exactly a secret. Epic Games earned around $2.4 billion in profit last year thanks to the hit battle royale, according to SuperData's annual report. And that's despite it being free to play on all platforms.
Netflix, however, brought home a staggering $4.2 billion in revenue in the past three months alone. This is up 27% on the same time last year, and is probably thanks to new releases, such as YOU and Birdbox.
And I know revenue isn't the same as profit, but making over $4 billion in three months, eh... Fortnite pinching users may be a problem, but in the grand scheme of things, it sounds to me like the company's doing just fine.
What do you think about this news? Who do you think Netflix's biggest rival is? Make sure you let us know.
Featured Image Credit: Netflix