Netflix names a Battle Royale game as its biggest competitor
What's the story
Netflix is one of the most premiere streaming platforms globally and is compelled to supply new and exciting content constantly to sustain consumers' interest. In this field, Netflix has stated that its biggest competition does not come from other streaming devices. Instead, they identified their biggest competition as Fortnite by Epic Games. Read what Netflix had to say about it.
Fortnite
The free Battle Royale has grabbed attention globally
For those unaware, Fortnite is a free Battle Royale game. 100 players are dropped into a shrinking map, where they have to loot weapons and armor and attempt to eliminate all opposition to win the Victory Royale. The game has grabbed attention globally for being free-to-play (despite having in-game purchases) and for introducing exciting content, in form of the story, across the seasons, in-game.
Investor letter
Netflix acknowledges Fortnite's popularity, in letter to investors
Netflix acknowledged Fortnite's popularity saying, "We compete with (and lose to) 'Fortnite' more than HBO". They continued, "There are thousands of competitors in this highly fragmented market vying to entertain consumers and low barriers to entry for those great experiences". This indicates Netflix is not as concerned about competitors like Amazon, Hulu, as they are about improving their own service to win consumers' attention.
Big competition
Fortnite, YouTube are significant competitors for Netflix
Fortnite currently boasts of a gamer base of around 200 million. With a huge pool of consumers, the popular Battle Royale has generated around $2.4 billion or around Rs. 17,101 crore in 2018, as per reports from SuperData, the industry analyst firm. Apart from Fortnite, Netflix recognizes YouTube as serious competition due to its popularity and has acknowledged Hulu's growing popularity in the USA.
Opinion
Despite Netflix's statements, the reality is different
Despite Netflix not acknowledging other streaming services as main competitors, the reality is different. Studies show an average American user is willing to spend a total of $38/month (Rs. 2,707) on streaming services. Netflix competes for a share of this wallet against platforms like Amazon Prime. With new streaming platforms coming from Disney and WarnerMedia, the competition over content is going to get fiercer.