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Why HBO Max Will Dominate Netflix Within 10 Years | VERSUS

This episode is part of our VERSUS series where we dive into the fiercest battles in business history.

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The Sparknotes πŸ“

πŸ† HBO’s commitment to quality beats Netflix’s commitment to quantity

“Netflix is a utility, a place you come to for a wide library of content. HBO is a place you come for guaranteed quality programming every single time.”

The streaming wars will be fought and won on the battleground of quality content, not quantity.

Technology has removed many of the barriers to entry for content producers. No longer is the cost of equipment, or the craft of editing, prohibitive to the average person.

The result is access to more content than ever. And that’s where Netflix made its bread as it revolutionized the face of video streaming.

But as the tech catches up, and companies like Amazon and Disney+ create streaming platforms with a ton of content, Netflix’s differentiation is diminishing.

That’s why those who produce quality content β€” like HBO β€” will be the ultimate winners in the entertainment, video streaming space.

πŸ“‰ Netflix’s lead over HBO Max β€” and in the streaming world β€” is shrinking

“With HBO Max, not only are you going to get the quality that you’re assured of with HBO, you’re also getting a wider library of content.”

With around 222 million subscribers, Netflix is still the leader in streaming services followed by Amazon Prime (175 million), Disney+ (115 million) and HBO Max (73 million).

But Netflix’s lead is getting slimmer. New streaming subscribers are signing up at higher rates for Amazon Prime, HBO Max, Disney+ and Discovery+, than Netflix.

Major mergers and acquisitions have allowed HBO Max and Disney+ to greatly increase the amount of content on their platforms.

Discovery+ for example will soon become part of HBO Max’s library. This following a merger between HBO’s parent company WarnerBros and Discovery.

Throw in Amazon’s multi-billion dollar appetite for producing content, and the competitive landscape looks insanely tough for Netflix.

🍴 But don’t stick a fork in Netflix just yet

“If you look at the last five years, Netflix’s total Emmy Awards has matched HBO’s including last year when Netflix tied the all time record for Emmys won in a single year.”

It’s not all doom and gloom for Netflix.

Despite slower than expected subscriber growth that resulted in the stock price tumbling 20%, Netflix isn’t done.

Other streamers are catching up when it comes to volume of content. But Netflix is proving that it can flex its quality muscles as well.

Netflix ties HBO Max for most Emmys by a network since 2017 at 116 apiece.

And while there’s no word of any major movie studio acquisitions, Netflix is looking to diversify its content through video gaming β€” acquiring three gaming studios in the past six months.

Netflix has been a major innovator twice already in its existence. Once as a direct-mail DVD rental service, another as a disruptor who changed the way we consume entertainment in the digital age.

The company may well pull another rabbit out of its hat by becoming a force to be reckoned with in the gaming world.

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What is β€˜The Competitive Enablement Show’?

Welcome to the Competitive Enablement Show. On this podcast, host Adam McQueen is joined by experts in the competitive intelligence industry to talk about innovative strategy, tangible advice and tactics that work, and building a competitive program that impacts the bottom line.