This year could be a rough one for Netflix. The company's revenue touched $16 billion in 2018 and they remain the go-to platform for streaming Movies and TV shows, yet they're about to have competition in the form of WarnerMedia and Disney, who are poised to launch their own services.
As things stand, services such as Hulu, Amazon Prime and HBO (a WarnerMedia subsidiary) are thought to be the main competitors. However, Netflix would disagree.
The company published their earnings report on Thursday, revealing that they garner 10 percent of television screen time in the United States and slightly less for total mobile screen time. Apparently, that isn't down to competition from rival streaming companies; it turns out that Fortnite is mostly to blame.
“We compete with (and lose to) Fortnite more than HBO,” the report states.
YouTube is also listed as a major competitor, and Netflix reports that their viewing and signings spiked when the free service went down for just a few minutes in October last year.
“When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time,” they added. “Hulu is small compared to YouTube for viewing time, and they are successful in the US, but non-existent in Canada, which creates a comparison point: our penetration in the two countries is pretty similar.”
Netflix, who garnered 139 million subscribers by the end of 2018, have made it quite clear that consumer screen time is their most valuable metric and note that their biggest competition for same comes from Epic Games, who announced upwards of 200 million registered users for their blockbuster battle royale game.
But, while the streaming service is losing screen time to Fortnite, they expect a massive surge in 2019 as hit series Stranger Things is set for a return in July, while interactive movies such as Black Mirror: Bandersnatch is also set to pull viewers.
"Our focus is not on Disney Plus, Amazon or others, but on how we can improve our experience for our members,” the company claims.
Their battle with Fortnite, though, won't be getting any easier this year, especially given an anticipated bump in their subscription fees.