The news made headlines again just a few days ago: Netflix start a foray into the world of video games. This week the platform has confirmed that this information is true and that, in effect, they will work to enter the mobile market. In addition, these games will be added at no additional cost to the service for users. The company’s goal is to attract subscribers and / or strengthen their commitment, at a time when they have lost 40,000 members in the United States and Canada. The information has been shared during the recent Netflix financial meeting.
Netflix, video games and the world of streaming
In the latest financial results published last Tuesday, Netflix has confirmed that it is indeed in “the early stages” of expanding into the world of videogames. This decision comes after we have enjoyed interactive experiences as it was Black Mirror: Bandersnatch or the own games of Stranger Things that have been published to date. These titles will be included in the subscription of the catalog, and will be part of the mobile market “mainly”.
“We see games as another new category of content for us, similar to our expansion to original films, animation and unscripted television, “Netflix said in a letter to shareholders. growth across all of our existing content categories, but since we’ve been moving toward original programming for almost a decade, we believe that this is the right time to learn more about how our members value games“.
Fighting for screen time and the war for subscribers
It is no coincidence that Netflix has chosen mobile devices to start its foray into the video game sector: remember that the platform competes for screen time and entertainment. Based on recent studies that we spend about 3.07 hours a day with our eyes fixed on our phone, Netflix wants to be there too and to carve a niche at this time of day in our lives. In the letter to shareholders this Tuesday, Netflix again pointed out that is competing for screen time against “companies like YouTube, Epic Games and TikTok (to name just a few). But, for the most part, we are competing against ourselves. “However, the reality is that we spend a lot of time in the day with the mobile in our hands, and Netflix does not want to miss it.
In this way, it is worth noting that although Netflix has been cooking its arrival in the world of video games for a long time, the announcement of its declaration of intent comes at a very interesting moment: during the past quarter, Netflix did not reach their expected growth figures, citing a “weak list of content” as one of the reasons. Tuesday’s earnings report has indicated that Netflix lost 400,000 subscribers in the United States and Canada this quarter. This is the first time it has lost subscribers in the region since the second quarter of 2019, although it has gained 7.5 million subscribers in the two countries since then.
The declaration of intent comes as Netflix loses 400,000 subscribers in the United States and Canada
The report of Bloomberg in which these plans were leaked maintains that Netflix intends to add video games to its platform in the next 12 months, presented as a new genre that will be added to the library as well as other content that is already part of the catalog. At this time, the firm does not appear to intend to charge more for access to these games, although this new content does know that it could support a subscription price increase in the future.
That said, Netflix has already begun to compose its own team of developers to launch this new bet, offering various jobs in this division. At the moment, we will have to wait for the firm to share more details about it.