On July 16, Netflix referred to TikTok for the first time as a competitor that needed to be taken seriously, according tomedia reports. “The alarming growth of TikTok reflects the liquidity of Internet entertainment,” the letter read. Netflix generally rarely praises competitors, the report said.
Founded in 1997, Netflix is the largest online streaming service provider in the United States, with numerous rights to tv dramas and hit series such as House of Cards and Black Mirror. Netflix’s earnings include a portion of the fixed content on competition that specifically takes stock of competitors that could threaten its growth. In 2014, Netflix identified its main rivals as traditional television, including television stations such as CBS and HBO. A year later, Netflix began to include Hulu and Amazon among its competitors.
Over time, Netflix’s rivals have embraced almost all of the products it competes for: from YouTube to Facebook and even video games. Quartz reports that, apart from YouTube, Netflix has never looked at the threat posed by a popular app. Netflix, for example, has never mentioned Instagram, Snapchat or Twitch in its earnings. As a result, Netflix has an unusual significance for TikTok’s roll-out.
TikTok has been in the market since 2018. By-April 2020, ByteDance’s TikTok and Shake’s global downloads exceeded 2 billion, according to Sensor Tower. In June, Kevin Mayer, a former disney streaming executive, joined TikTok as Byte DanceCOO and TikTok CEO.