Netflix has been making sweeping changes to make more revenue out of its services. Last year, the streaming giant put a stop to password-sharing to encourage more paid accounts, and now the company is looking for ways to make more money out of games.
A new report from the Wall Street Journal reveals that Netflix is having internal discussions on potential revenue strategies for its gaming wing.
Netflix currently has 68 games on its platform and has 90 more in the works. Some of its noteworthy titles include the GTA trilogy and some in-house games including Oxenfree 2. However, despite having some commendable game lineups, Netflix’s gaming platform has yet to see any consistent engagement. Even after a year of launching games, only 1% of Netflix’s subscribers are playing games on the platform and the figure hasn’t improved much since.
Netflix remains undeterred by the lukewarm initial reception to its foray into the gaming world. The company has demonstrated its commitment by making substantial investments, to the tune of approximately $1 billion, in the development of its gaming business. In this pursuit, Netflix has not only acquired studios like Night School Studio but has also forged collaborations with other renowned game developers.
As Netflix continues to chart its course in the gaming landscape, it’s actively exploring various strategies for monetizing its gaming platform. Among the options under consideration are the introduction of in-app purchases, the possibility of charging additional fees for select games, or even the incorporation of advertisements within the gaming experience, particularly within the new Netflix ad-supported tier.
Any of these steps would signify a significant departure from the current business model, highlighting Netflix’s determination to carve a meaningful presence in the competitive gaming industry.
In addition to direct monetization efforts, Netflix is actively delving into innovative approaches to entice gamers into its ecosystem. One avenue involves the use of smartphones as controllers for TV gaming, an idea hinted at by code discovered within the Netflix app. Furthermore, the realm of cloud gaming has piqued the company’s interest, as suggested by recent job listings seeking expertise in this domain.
While these strategies are still in the exploration phase, Netflix has laid out its immediate plans for the upcoming year. Among its initiatives are the forthcoming launches of new games, including titles like Cozy Grove: Camp Spirit, Sonic Mania Plus, Hades, Game Dev Tycoon, a game inspired by the Rebel Moon film, and an intriguing title set in the captivating universe of Squid Game.
