Disregard the idea that Disney has to beat Netflix, it’s Fornite who poses a bigger threat.
Back in 2013 Netflix’s Ted Sarandos perfectly captured the strategic challenge that the growing streaming service rapidly faced: “The goal is to become HBO faster than HBO can become us”, he told GQ magazine, in reference to the premium cable powerhouse that broadcasts the likes of Game of Thrones.
In other words: Though Netflix’s streaming technology is new and exciting (or at least it was five years ago), the technology alone won’t keep Netflix ahead – content matters too. That’s why, fast-forward to 2019, Netflix has utterly transformed both the living room and the movie theater. This year it is expected to spend a eye-watering $15 billion on films and TV shows for us to watch.
In just a few short years Netflix has transformed from the new upstart challenger into the 800Ib gorilla in the entertainment industry. Even Amazon, a company that eats entire sectors for breakfast, has to play second-fiddle to Netflix when it comes to streaming.
And for that reason, there are some people out there like John Meyer, an industry analyst and founding partner at Transpire Ventures, who think that even Disney, one of the biggest names in entertainment, might not be able to beat it.
“I strongly believe Disney will not become a threat to Netflix whatsoever,” Meyer said in an email to TechRadar. “After all, they are a tech company at heart and have enormous power with the data they capture on their millions of subscribers, which helps them design what original content to create.”
But here’s the thing: Maybe Disney doesn’t need to beat Netflix. Maybe Netflix isn’t even Disney’s biggest strategic challenge. Instead, maybe Disney CEO Bob Iger should probably spend more time worrying about Fortnite.
Now, at first that might sound confusing. Why would Disney+, a new streaming service that bears close resemblance to Netflix, compete with an online game?
The answer was probably best given by Netflix itself in a letter sent to shareholders earlier this year: “Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members.
