The Strategist

WSJ: Netflix sets to conquer gaming industry

01/08/2024 - 04:54

Netflix is looking into ways to start generating revenue from its games, which may require a change in its streaming approach, writes the Wall Street Journal citing sources.

orangefan_2011 via flickr
orangefan_2011 via flickr
Netflix began offering games in 2021; at the moment, all its members can download free mobile games. The streaming provider is currently looking for ways to earn on this option. According to the newspaper, the provider is considering in-app purchases, advertisements, and payments for complex games. Historically, Netflix avoided including in-app purchases or advertisements in its games.

Even if the proportion of streaming subscribers who frequently play games is increasing, it is still rather modest; according to Apptopia, in October, it made up less than 1% of the global audience. Since its release in 2022, the most downloaded game, Too Hot to Handle, which is based on the same-titled reality TV show, has received 7 million downloads.

Analysts estimate that streaming has invested around $1 billion on game development and studio acquisitions (the first of which being the independent developer Night School Studio, purchased back in September 2021). Approximately $17 billion are spent annually on film and television productions.


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