The overwhelming popularity of Fortnite appears to also be affecting many other business, including one of them most popular streaming services, Netflix.
Netflix has shared a letter to shareholders today talking about the state of their company and how their overall market share is projecting as the company looks to push forward into 2019 with many uncertainties in the streaming market. Netflix is set to lose many of its content as companies that share their TV shows on the service are building their own; Disney is taking on Netflix with Disney+ and removing Disney shows from Netflix, with NBC also planning their own streaming service for next year. Netflix announced this week that their price for subscription is increasing per month for all U.S subscribers.
In that investor note, Netflix has revealed that one of their biggest competitors in the US is not other streaming services, but rather Fortnite.
“In the US, we earn around 10% of television screen time and less than that of mobile screen time. We compete with (and lose to) Fortnite more than HBO. When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time. There are thousands of competitors in this highly-fragmented market vying to entertain customers and low barriers to entry for those with great experiences.”
Netflix argues that their biggest competitors are not other streaming services, but rather other forms of services taking users away from using Netflix all the time. Fortnite’s popularity keeps expanding and effecting many other business than just the video game industry. Fortnite also being on mobile has effected Netflix’s mobile user count as their biggest channel is also mobile users.
Worldwide, Netflix has 139 million subscribers while Fortnite has 200 million registered users, with 80 million monthly active users. That number has changed monthly with different game releases.