Introduction
In the entertainment industry, competition rarely happens inside clearly defined categories. Streaming services, gaming platforms, audio products, and live experiences increasingly compete not on content quality alone, but on how consumers allocate time & attention.
This is why indirect competitors in the entertainment industry often have a stronger strategic impact than direct rivals. They do not attack the same audience with similar offerings. Instead, they reshape consumption habits and redefine what “entertainment” means in practice.
In this article, we’ll explore indirect competitors examples in the entertainment industry, explain how indirect competition works, and break down real-world cases involving major entertainment companies.
What Are Indirect Competitors? TL;DR
Indirect competitors are businesses that serve the same underlying entertainment need but do so through different formats or experiences, often operating in completely different market categories.
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In the entertainment industry, users rarely choose between brands or platforms — they choose between activities, deciding how to spend their time rather than which company to engage with.
Indirect Competitors in the Entertainment Industry
The entertainment industry operates in a fundamentally different competitive environment than most traditional markets. Unlike traditional markets, the entertainment industry operates as a shared attention pool. Here, competition is not defined by product similarity or industry boundaries, but by a single constrained resource: people’s discretionary time. A consumer does not decide whether to use a specific platform; they decide how to spend an hour in the evening or a weekend.
As a result, platforms that look unrelated — video, audio, gaming, live experiences — frequently compete in the same decision context. The following examples illustrate how this indirect competition plays out in real business terms.
This is why focusing exclusively on direct competitors has long been insufficient in entertainment. As early as 2017, industry leaders were already publicly acknowledging this reality. Reed Hastings famously remarked that Netflix’s true competition extended far beyond other streaming services such as Amazon or HBO. Any activity that absorbed leisure time was part of the competitive landscape. Further more, he even pointed out that, , in the attention economy, Netflix competes with sleep.
This framing highlights a defining characteristic of indirect competitors in the entertainment industry: they substitute time allocation, not features. A user deciding whether to watch a show, play a game, scroll a feed, attend a live event, or simply go to bed is making a single decision about how to spend available attention. The alternatives may look unrelated from a product standpoint, but they are directly comparable in the mind of the consumer.
Understanding indirect competitors in the entertainment industry means accepting that the market is not defined by content type, but by behavioral substitution. Companies that ignore this reality risk optimizing against the wrong rivals while losing the real competition for time, habits, and routine.
Example 1: HBO → Steam
Both compete for the same long, uninterrupted leisure sessions where users seek deep engagemenеnt.
Aspect | HBO | Steam |
|---|---|---|
Core entertainment format | Long-form scripted series and movies | Interactive PC games |
Primary user motivation | Passive immersion, storytelling | Active engagement, challenge, progression |
Time context | Usually on evenings & weekends | Usually on evenings & weekends |
Example 2: Netflix → Instagram
Netflix competes indirectly with Instagram for the same moments of free time — especially before sleep. While Instagram does not replace Netflix functionally, it absorbs attention in smaller intervals, making it harder for users to commit to long-form content.
Aspect | Netflix | |
|---|---|---|
Core entertainment format | Long-form video (episodes, films) | Short-form, algorithmic feeds |
Consumption pattern | Planned, focused viewing | Fragmented, habitual scrolling |
Time context | Evenings, pre-bedtime | Idle moments, pre-bedtime |
Research consistently shows that over 80% of viewers use a second screen while watching TV, most often scrolling social media on their phones. In practice, this means that even when users choose Netflix, their attention is frequently split with platforms like Instagram.
This “second-screen” behavior fragments attention, reduces immersion, and lowers tolerance for slow pacing or narrative build-up. As a result, Instagram doesn’t need to replace Netflix entirely to compete with it—it only needs to interrupt focus.
Example 3: AMC Theatres → Meta Quest (VR)
As VR technology becomes more accessible and content quality improves, virtual reality increasingly substitutes experiences that previously required leaving the home. The competition is not about storytelling versus gameplay, but about depth of immersion and experiential payoff. In this context, VR does not need to replicate movies to compete with cinemas — it only needs to satisfy the same desire for escape and spectacle.
Aspect | AMC Theatres | Meta Quest |
|---|---|---|
Core entertainment format | Passive, large-screen movie experience | Interactive, immersive virtual environments |
Consumption context | Out-of-home, planned activity | At-home or location-based, on-demand |
User motivation | Visual spectacle, shared viewing | Presence, immersion, novelty |
Conclusion
The entertainment industry has entered a phase of extreme abundance. Users are surrounded by more entertainment options than ever, across formats, platforms, and contexts. As a result, audiences have become highly selective — and increasingly impatient. Winning attention today is less about outperforming direct competitors and more about understanding what other experiences are shaping user expectations.
By observing how alternative platforms capture attention, reduce friction, or create habit-forming experiences, entertainment brands can adapt faster, rethink engagement, and stay relevant in a market where loyalty is fragile and choice is endless.
Want to Explore More Indirect Competition Examples?
If you want to dive deeper into how indirect competitors operate across industries, read our dedicated guide where we break down more real-world examples.
FAQ
What are indirect competitors in the entertainment industry?
Indirect competitors in the entertainment industry are companies that offer different forms of entertainment but compete for the same user time, attention, and emotional engagement.
Why is indirect competition so strong in entertainment?
Because users have limited free time and low switching costs, making it easy to replace one entertainment activity with another.
3. What are real-world examples of indirect competition?
Indirect competitors can be any activity that satisfies the same entertainment need and “wins” the same leisure time. For example, a streaming service indirectly competes with social media (TikTok, Instagram, YouTube), gaming (mobile games, console/PC, casual puzzle games).
