AffluPars45 Why has Netflix entered gaming?
One of the main reasons can be that Netflix is trying to diversify its revenue system. Earlier the streaming platform was reliant on its subscription-based strategy to generate revenue, but this system has its own limitations. Recently, Netflix has been facing serious competition from rivals like Hulu, Amazon Prime, Disney+ and many more. To remain competitive and expands its revenue, Netflix needs to explore other platform and this is where the gaming industry comes in.
According to media reports, currently, the video game industry worth is over $150 billion and is expected to grow up to $300 billion by 2025. By offering video games, Netflix can easily tap into this growing market and diversify its revenue system.
Netflix’s gaming journey started in November 2021, when it launched a limited set of mobile games for iOS and Android users. The games were a mix of casual and midcore titles, and they were all free to play.
In April 2022, Netflix expanded its gaming offering to include more games and more platforms. The company added a handful of new games to its mobile lineup, and it also began testing a new feature that allowed users to stream games directly to their TVs.
Netflix’s latest gaming development is the launch of a cloud gaming service for PC and TVs. The service, which is still in the testing phase, is called Netflix Games on Windows. It allows users to play a selection of Netflix games without having to download or install anything.
Netflix’s gaming ambitions are still unclear. The company has not said how many games it plans to release, or how much it plans to charge for its gaming service. However, it is clear that Netflix is serious about gaming, and it is investing heavily in the space.
Here are some of the latest developments in Netflix’s gaming journey:
- In June 2022, Netflix announced that it had acquired Night School Studio, the developer of the popular adventure game Oxenfree. This acquisition is seen as a sign that Netflix is serious about developing high-quality games.
- In July 2022, Netflix announced that it would be expanding its gaming offering to include games for children. The company said that it would be working with developers to create games that are educational and fun for kids.
- In August 2022, Netflix announced that it would be opening a new gaming studio in Montreal. The studio will be led by former Electronic Arts executive Mike Verdu.
It is still too early to say how successful Netflix’s gaming venture will be. However, the company is clearly making a big bet on gaming, and it will be interesting to see how it plays out.
Here are some of the challenges that Netflix faces in its gaming journey:
- Competition: Netflix is not the only company that is interested in the gaming market. Other streaming services, such as Amazon and Apple, are also developing gaming offerings.
- Monetization: Netflix has not yet said how it plans to monetize its gaming service. It is possible that the company will charge a monthly subscription fee, or it may sell games individually.
- Technology: Netflix needs to develop the technology to stream games without buffering or lag. This is a challenge, as gaming requires a lot of bandwidth.
- Content: Netflix needs to create a compelling library of games that will appeal to a wide range of users. This is a challenge, as the gaming market is very competitive.
Netflix began its gaming journey in November 2021, which was exclusively accessible through iOS and Android platforms. Since making its initial stride into the gaming sphere, the collection of mobile games has expanded, encompassing more than 63 titles as of today.
In a recent blog article, the streaming platform unveiled its most recent undertaking: the integration of video game playing directly within its application and website, catering to users utilizing Smart TVs and computers.
Although presently in the experimental phase and selected users from UK and Canada can access this gaming content via TV and PC.
As of now, Netflix offers access to just two games, “Oxenfree” and “Molehew’s Mining Adventure,” which can be streamed through their platform. On television sets, these games can be managed using a game controller smartphone application, recently introduced by Netflix, eliminating the need for any other hardware such as an Xbox controller.
