In its letter to shareholders, there’s a candid passage about where Netflix’s real competition lies.
It said it faces greater competition from people watching clips of video game Fortnite over those watching rival entertainment provider HBO.
“When YouTube went down global for a few minutes in October, our viewing and signups spiked for that time,” it added.
It’s what makes predicting Netflix’s future so interesting – they’re not so much in the entertainment business, but the eyeballs business.
You, the consumer, have more things than ever to look at, or interact with, and competition for Netflix will only get fiercer in 2019.
I predicted later in that brief take that Netflix’s stock would recover pretty quickly after a bit of slumping today. It still believe that will happen: there are so many reasons for investors to be optimistic. Not only are Netflix Originals proving to be consistently huge hits, suggesting the firm is a creative force to be reckoned with, the firm wow everyone with a new interactive format with Bandersnatch.