https://sputnikglobe.com/20220807/netflixs-video-game-bid-does-not-appear-to-be-paying-off-so-far-1099345716.html
Netflix’s Video Game Bid Does Not Appear to be Paying Off, So Far
Netflix’s Video Game Bid Does Not Appear to be Paying Off, So Far
Sputnik International
The streaming giant has lost subscribers in the past two quarters, tanking its stock price. In an attempt to turn things around they have been experimenting... 07.08.2022, Sputnik International
2022-08-07T00:08+0000
2022-08-07T00:08+0000
2022-08-07T00:08+0000
netflix
video games
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Netflix’s foray into the gaming industry has been slow going. According to CNBC, only 1.7 million subscribers play their games daily, less than 1% of the streaming giant’s subscriber base.Netflix’s foray into video games, which is separate from the recent interactive movies on its streaming service, is an attempt to differentiate itself from competitors who have recently entered the space like Disney+ and HBOMax. The games must be downloaded as separate apps, which may explain the hesitancy of most users to engage with the venture.The subscriber base has been shrinking for Netflix, they lost nearly a million subscribers in the second quarter of this year after losing 200,000 subscribers the quarter before. That was the first time Netflix’s subscriber base shrunk in more than a decade.The hope is that outside benefits, like free games, will encourage subscribers to stick with the service rather than jump to rivals. However, Netflix COO Greg Peters said last year that the company was likely “years” away from learning how to utilize games to keep subscribers on the platform, but their main goal is to keep attention on their franchises through the games in between seasons. However, their current library focuses on original IPs not connected to Netflix shows. Of the 24 game apps they currently offer, only two are strictly connected to Netflix’s original properties, Stranger Things 3: The Game and Stranger Things: 1984. They do offer an Exploding Kittens game based on the best-selling card game of the same name that is getting a Netflix adaptation soon. One other app, Hextech Mayhem Netflix Edition is based on the popular PC title League of Legends, which got its own Netflix adaptation last year titled Arcane. The rest of the titles in Netflix’s gaming catalog have no connections to its shows.It is not known how much Netflix has invested in its gaming division but its purchase of developer Next Games cost roughly $72 million, not an insignificant investment. It also seems that Netflix will continue to make games that are not directly linked to its original IPs going forward and may rely on licensing other popular IPs to bring in new subscribers.While Netflix appears to have some big plans in the gaming space, it is currently in the testing phase and moving slowly. For comparison, Epic Games, which Netflix recently named as a rival for people’s time, invested nearly half a billion dollars into its Epic Game Store as of August 2021, in an attempt to steal some market share from its rival, Steam. Netflix is competing with the iOS store and Google Play, storefronts that are even more ubiquitous with their platforms than Steam is with PC games.If they plan to make gaming a major part of their business model, they will have to offer something no other platform can, something Netflix appears to be aware of.“We have to be differentially great at it. There’s no point of just being in it,” Netflix co-CEO and co-founder Reed Hasting said in January.
https://sputnikglobe.com/20220702/running-up-that-hill-netflix-gets-overwhelmed-as-stranger-things-volume-two-drops-1096877642.html
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netflix, video games
Netflix’s Video Game Bid Does Not Appear to be Paying Off, So Far
The streaming giant has lost subscribers in the past two quarters, tanking its stock price. In an attempt to turn things around they have been experimenting with different strategies, including a lower-cost ad-based tier and choose your own adventure movies.
Netflix’s foray into the gaming industry has been slow going.
According to CNBC, only 1.7 million subscribers play their games daily, less than 1% of the streaming giant’s subscriber base.
Netflix’s foray into video games, which is separate from the recent interactive movies on its streaming service, is an attempt to differentiate itself from competitors who have recently entered the space like Disney+ and HBOMax. The games must be downloaded as separate apps, which may explain the hesitancy of most users to engage with the venture.
The subscriber base has been shrinking for Netflix, they lost nearly a million subscribers in the second quarter of this year after losing 200,000 subscribers the quarter before. That was the first time Netflix’s subscriber base shrunk in more than a decade.
The hope is that outside benefits, like free games, will encourage subscribers to stick with the service rather than jump to rivals. However, Netflix COO Greg Peters said last year that the company was likely “years” away from learning how to utilize games to keep subscribers on the platform, but their main goal is to keep attention on their franchises through the games in between seasons.
“I would say the eyes that we have on the long-term prize really center more around our ability to create properties that are connected to the universes, the characters, the stories that we’re building,” Peters said during an earning conference call last year.
However, their current library focuses on original IPs not connected to Netflix shows. Of the 24 game apps they currently offer, only two are strictly connected to Netflix’s original properties, Stranger Things 3: The Game and Stranger Things: 1984.
They do offer an Exploding Kittens game based on the best-selling card game of the same name that is getting a Netflix adaptation soon. One other app, Hextech Mayhem Netflix Edition is based on the popular PC title League of Legends, which got its own Netflix adaptation last year titled Arcane. The rest of the titles in Netflix’s gaming catalog have no connections to its shows.
It is not known how much Netflix has invested in its gaming division but its purchase of developer Next Games cost roughly $72 million, not an insignificant investment. It also seems that Netflix will continue to make games that are not directly linked to its original IPs going forward and may rely on licensing other popular IPs to bring in new subscribers.
“We’re open to licensing, accessing large game IP that people will recognize,” Peters said in January.
While Netflix appears to have some big plans in the gaming space, it is currently in the testing phase and moving slowly. For comparison, Epic Games, which Netflix recently named as a rival for people’s time, invested nearly
half a billion dollars into its Epic Game Store as of August 2021, in an attempt to steal some market share from its rival, Steam. Netflix is competing with the iOS store and Google Play, storefronts that are even more ubiquitous with their platforms than Steam is with PC games.
If they plan to make gaming a major part of their business model, they will have to offer something no other platform can, something Netflix appears to be aware of.
“We have to be differentially great at it. There’s no point of just being in it,” Netflix co-CEO and co-founder Reed Hasting said in January.
