Netflix just announced that it is raising prices, which may be a sticking point for a lot of subscribers. But that isn’t stopping the streaming company from looking ahead and staying competitive in a very busy market.
Today, Netflix announced its earnings report for 2018 and it’s a bit of a mixed bag. The company earned just over $4 billion last year, and it added almost 9 million global new accounts. And while there are a variety of different streaming platforms out there, Netflix doesn’t necessarily consider any of those competition in the same way we might think. The company says it earns roughly 10 percent of TV time, and something less than 10% of mobile screen time.
Interestingly, Netflix says that when YouTube went down for a very brief point in October of last year, new account sign-ups spiked, as well as viewership. Hulu is referenced as well, but in a point where that particular streaming platform isn’t available in Canada, while Netflix is. Netflix does admit Hulu is successful in the United States, though. And while Netflix admits that there are so many different streaming options out there, Netflix says its own service’s stability and experience is why it is doing so well for itself — and why it can continue to compete even with new services like Apple’s upcoming streaming option, or the incoming Disney+ platform as well.
What really stuck out in the earnings report is the fact that Netflix is aware that it isn’t just about other streaming platforms, because this is a battle for attention and eyeballs. Which means other gigantic pieces of content, like Epic Games’ Fortnite Battle Royale, are actually prying attention away. Netflix said that “We compete with (and lose to Fortnite more than HBO”, which is probably pretty obvious in the grand scheme of things, but also pretty funny. Apparently people aren’t multitasking while they play Fortnite.
Netflix says it’s still going to focus on the general experience for the users out there in the world, which is a good thing. The price hikes may cause some hesitation from some customers, but it sounds like Netflix isn’t too worried about it.