Netflix is looking to expand its empire by investing more in the entertainment industry. While the company is known for its serial productions and movies, as well as its streaming video service, the “entertainment” we’re talking about is in an entirely different realm, namely the world of video games. According to informants close to the project, Netflix would seek to strengthen its video game offer, mainly by offering a subscription system to play titles.
A money-making industry
As we know, video games are an industry that is doing extremely well, whether it is casual games for occasional players, core games for more invested players or online casino. The amount of money generated by the video game industry continues to increase year by year.It is predicted that the industry will exceed $200 billion in revenue by 2023 and the game model that will normally be developed by Netflix (mobile and tablet games) alone account for over half of the industry’s revenue.
Initially, Netflix intends to develop games for smatphones and tablets. The platform says it will build on previous experiences like the game related to the series “Stranger Things”, designed in 2017 and that had to be downloaded ; as well as on series and major characters. Considering that there are video games based on movies or series, it’s not a bad idea. These games will be quite simple far from the very complex games that can be found on consoles. Positive point for Netflix customers, these games will be free. The model that Netflix favors is a model where the product is attached to another already existing product and without additional cost. The game is not intended to create economic value but rather to keep the consumer loyal to the platform and especially to retain it because when you get involved in a video game, you spend a significant number of hours on it or even days, weeks or months. The American company is therefore embarking on a strategy of diversifying its offer, whereas until now it was quite “classic” with a simple VOD offer and the production of content.
A challenge for Netflix
Most of its competitors are already active in video games. This is the case of Amazon or Apple with its Apple Arcade product. But other giants have broken their teeth in this very specific field of video games, such as Google and its Google Stadia platform, which is really struggling to take off, or Disney, which has decided to close its video game development studios. The success of Netflix’s arrival in the gaming sector will also depend on the gamers themselves. Here again, it is very difficult to predict if they will respond to Netflix’s offer as the profiles of these lovers of virtual worlds are numerous. Moreover, the video game industry is a competitive sector that evolves very quickly.
It is difficult to project on the success of Netflix in the video game sector because we have little information on the strategy that will be used. Let’s wait for the streaming platform to communicate more to make more accurate assumptions.