With a streaming giant like Netflix, you would expect their major competitors to be other broadcasting companies, like Hulu or HBO. However, in their recently released earnings report for Q4 of 2018, Netflix states that they see Epic Games as one of their biggest competitors.
As reported this morning by GamesIndustry.biz, Netflix recently released their financial report for Q4 2018 along with a letter. In the letter, they said to investors that when it comes to competition for screen time, television companies aren’t the only competitors. They have to deal with a “very broad” variety of other companies. Outside of the broadcasting industry, they offered only one major example: they compete and lose to Fortnite more than they do with HBO. In a market has thousands of competitors battling in order to be the ones that entertain customers, Netflix said their growth is based on how good the experience they provide is, compared to every other option customers could choose.
Fortnite earned $2.4 billion in 2018 and had over 200 million players late November.
However, the trend of a huge video game pulling views away from Netflix also works the other way around. In another GamesIndustry.biz article, publisher Christopher Dring gave readers 10 things to consider when they’re planning a game’s release date. Tip #8 told readers to consider ALL the competition. He cites a busy week in 2017 when we saw the releases of Super Mario Odyssey, Assassin’s Creed Origins, and Wolfenstein 2. In addition, Season 2 of Stranger Things premiered and Thor: Ragarok hit theaters around the same time. Dring says that MIDiA Research found a strong overlap between Assassin’s Creed fans and Stranger Things fans.
Netflix also spoke about plans to expand on cross-overs with video games. Following the success of the Black Mirror episode Bandersnatch, which made use of choose-your-own-adventure elements, Netflix is looking to experiment more with interactive fiction. They’ll be doing this with a custom-built technology called “Branch Manager.” They’re also planning on releasing a new Stranger Things game in collaboration with BonusXP. We can expect to hear more about these in the future.