Despite this incredible accomplishment, Netflix is seeing increasing pressure from a wider range of competitors, including Epic Game’s ludicrously popular Fortnite, which made $2.4 billion in 2018 alone.
In fact, according to the earnings report, Netflix views Fortnite as bigger competition than HBO, noting that it is currently losing out against the world’s most popular game.
“We compete (and lose to) Fortnite more than HBO,” Netflix added. “When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time. Hulu is small compared to YouTube for viewing time, and they are successful in the U.S., but non-existent in Canda.”
This is very similar to last June’s earning season when Fortnite was mentioned 54 times between analysts and executives at the various tech giants in the S&P 500 index. Including the term “battle royale,” Fortnite’s game category, bumps this number to 95. This significantly outpaced other popular topics like cryptocurrencies, which were mentioned only 45 times, according to MarketWatch analyst transcripts.
Interestingly, Netflix sees its quality as its major advantage versus other platforms. “Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members,” reads the report.
Despite the underwhelming earnings report, shares of NFLX are up over 26% in the last month to $339.10, giving the streaming giant a $148 billion market cap.