Netflix thinks "Fortnite" is a bigger threat than HBO

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Netflix believes that "Fortnite" is a bigger threat to its business than HBO. In its latest quarterly quarterly earnings report released on Thursday, the company says its streaming service now accounts for about 10% of US TV screen time, but no longer considers competitors as providing services. also TV content and streaming videos.

"We are competing (and losing against)" Fortnite more than HBO, "says the letter to shareholders of the company." When YouTube was used globally for a few minutes in October, our views and listings have multiplied … There are thousands of competitors in this highly fragmented market that are competing to entertain consumers and have few barriers to entry for those with great experience.

In other words, Netflix today considers that its competitors are those who aim to entertain their customers and to make them lose hours of free time. This includes epic game successes like "Fortnite".

Netflix's statement comes at a time when the Internet, mobile phones and games have diverted the attention and attention of consumers instead of watching television.

In fact, throughout the year 2012, experts in the mobile industry have warned that the time spent in mobile applications began to challenge television. And a few years ago, applications finally came to the fore. For the first time, the time spent in applications was greater than that of television.

Fortnite, in particular, has benefited from this change in consumer behavior and now has more than 200 million players. (Netflix just reached 139 million, for comparison.)

In 2018, Fortnite – along with other multiplayer games such as PUBG – has advanced a trend towards multiplatform games that can reach consumers wherever they are, such as streaming applications such as Netflix. According to a recent report by App Annie, this is only the tip of the iceberg. Cross-platform games, including not only Fortnite and PUBG, but all that will follow, are expected to expand in 2019.

Fortnite has also become a place where you do not just play, but rather "hang out". For kids and young adults, the game has replaced the mall or other areas of the city where it will be around his friends and socializes, wrote recently Owen Williams, technical writer, on his blog Charged.

"Fortnite is not only the new meeting place, the mall, Starbucks or the stroll in the city, but also the" third place "coveted for millions of people around the world," he said.

Roblox, with more than 70 million players, has a similar goal.

That means it's also a real threat to Netflix's time. If players hang out in virtual space with friends, they have less time to watch streaming TV. (And maybe – since many of the younger Netflix have never had cable to start with – have less desire to watch TV to start.)

"I think it's a wasted time, a time of entertainment compared to other activities," Reed Hastings, Netflix CEO, said on Thursday about the threat from users seeking time. . "So, instead of doing Xbox, Fortnite, YouTube, HBO or a long list, we want to win and provide a better experience. No advertising on request. Incredible content, "he said.