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Neither HBO Max, nor Disney+ nor Amazon Prime Video, this is Netflix’s true competitor


In the latest communication to investors, Netflix analyzes its market with very interesting details such as who is its most direct competition… Who are you betting on?

Neither HBO Max, nor Disney+ nor Amazon Prime Video, this is Netflix's true competitor
What if we told you that Netflix’s most direct competition is not HBO or Disney+, but YouTube?

It is not that the sector of transmission and audiovisual content is experiencing its best moment in recent years, and yet it seems Netflix is ​​beginning to show its accounts after the expected strategic move around the subscription sharing banwhich first meant an unprecedented drop and now against all odds a very important recovery of business volume. The last letter to investors published by the company attests to this, and We continue to draw conclusions from this report very interesting.

Not in vain, It seems that Netflix does not mind the competition and in fact they want “keep being intense”both within the transmission of purer content as well as among the classic competitors of traditional entertainment, which for them would be Disney, Comcast/NBCU, Paramount or Warner Bros. Discovery, among others. The Los Gatos, California-based company says that ideally sustain the growth of content libraries with increasing quality and creativity, as this is good for their customers.

Now, Netflix executives are also clear that now the industry giants are focusing on profits to continue building sustainable businesses in the long term, and they are also immersed in this process, identifying very well who your main competition is.

So, they say from Netflix that the big tech conglomerates – Amazon, Google and Apple – are investing a lot of money and betting very hard to increase their income in the business of transmission, making the battle fierce both at the level of subscribers and their movement between services, and therefore making it difficult to estimate the inflow of revenue from Netflix, HBO, Prime Video and others.

Neither HBO Max, nor Disney+ nor Amazon Prime Video, this is Netflix's true competitor

Percentage of total media consumption in a day in the United States (persons 2 years and older).

Regarding the competition detected from Netflix, they are clear that your main focus should be on YouTube usersand is that the service owned by Google is its main competitor by farboth in hours of content consumption and in income. The graph above shows this clearly..

In fact, the Netflix revenue was 32 billion in 2022 compared to the 40,000 million entered by YouTube in all its products, keeping those of Amazon at $35 billion. And now, it will be necessary to add to an Apple that continues to invest in its platform with more sports, the arrival of Messi in the MLS and more exclusive content.

Netflix is ​​clear that its biggest competitor today is YouTube, which far exceeds it in revenue with a technical tie in hours of content consumption. In any case, they affirm that the competition will be very great now also with Apple, in addition to Amazon and the traditional entertainment companies.

To reassure his investors, the letter explains that Netflix has shown that with a well-executed strategy and a solid approach, a great business can be achieved. in the field of transmissionand that is that long-term success is your biggest concern right now.

confirm that will continue to work with the creators to produce and license more interesting films, series and documentaries, as well as expand your catalog with TV shows and even games. They will also seek to create “a stellar discovery engine”as well as a more robust, reliable and scalable payment gateway always with the consumer and the customer on his horizon.

“We have much more to do and we are ready to face the challenge”. Sounds good, so let’s see, Netflix friends…

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