Many of us stocked up on home survival items, such as healthcare, food, skincare routines, workout sessions and a Netflix subscription, as we were locked into our home sweet homes in not so sweet year, 2020.
This is supported by the subscriber count. The company got a surplus of nearly 25 million new users in just the first half of 2020. They surpassed their previous record for new customers by the end of 2020, garnering a total of 37 million new subscribers. Despite Netflix’s tremendous user increase last year, the company’s user base graph significantly dropped this year. The decline in subscriber numbers could indicate that the company is nearing saturation.
As a result, Netflix is exploring new methods to increase subscriptions, which are now its only source of revenue, by diversifying into video games. The games might be based on existing Netflix franchises or original series, and they could be offered to Netflix subscribers as early as next year.
NETFLIX‘S VOYAGE TOWARDS GAMING?
Netflix is considering an expansion into video games after making its first major foray beyond television shows and films and has hired Mike Verdu, a former executive at Facebook Inc. and Electronic Arts Inc., to lead the charge.
According to a source familiar with the issue, the plan is to launch video games on a video streaming platform within the next year. The games will be shown alongside existing programming as a new programming genre, similar to how the video streaming and production company has done with documentaries and stand-up specials. According to the individual, who asked not to be identified since the discussions are private, the company has no plans to charge extra for the content at this time.
One of the most daring moves of the company thus far would be to expand into games. According to Mike Verdu, the company employs a senior executive who previously worked for Electronic Arts on popular mobile games such as The Sims, Plants vs. Zombies, and Star Wars franchises. Between 2009 to 2012, he was the company’s chief creative officer.
THE IDEA OF EXPANSION
Netflix has been looking for new methods to expand, particularly in places like the United States, where competition is fierce. This has included expanding its children’s programming, launching an online store to sell items, and enlisting the help of Steven Spielberg to bring more notable films to its slate. Although it continues to outperform streaming competitors like Disney+ and HBO Max, the firm attracted fewer customers than planned in the most recent quarter.
According to a source close to the situation, the company will beef up its gaming staff in the coming months. On its website, the company has already begun to post job openings in the game development field.
In addition to television services, many of the world’s major tech corporations sell gaming alternatives. Apple Inc. offers a gaming platform called Arcade, as well as a TV+ service for original video content. However, the game comes at a cost.
NEW VENTURE OR A PRICES HIKING STRATEGY?
Video games provide another way for the company to attract new users while also providing something that none of its immediate competitors presently do. Live sports are available through Walt Disney Co., AT&T Inc.’s WarnerMedia, and Amazon.com Inc.’s primary video services, but none of them offers to gaming.
In the end, the decision may make it easier for the video streaming platform to justify pricing hikes in the future. Games can also be used to promote existing programmes.
Netflix has already sold the rights to games based on its series, such as “Stranger Things,” but this new venture is much more ambitious. According to the individual, the Los Gatos, development plan. Netflix, in its own classic tradition, may begin with simply a few games and expand from there.