Netflix chief executive Reed Hastings expects an "arms race" to dominate web-based TV viewing, with Time Warner's HBO Go service his top competitor.
"The competitor we fear most is HBO Go," Hastings said at a UBS media conference in New York. "HBO is becoming more Netflix-like and we're becoming more HBO-like. The two of us will compete for a very long time."
Hastings downplayed the emergence of other competitors, such as Verizon Communications and Amazon.com, saying rivals will have to spend US$1 billion ($1.28 billion) to US$2 billion a year on content. New competitors also will have to get their offerings on more devices in the home, particularly so-called smart TVs with built-in web connections, he said.
Half of American home video viewing will come through the internet as soon as 2016, aided by expanding fibre-optic networks that can carry the data and more web-enabled TVs, Hastings said.
"The industry is very motivated around this concept of smart TVs," Hastings said.
