Netflix is heavily considering gaining more profit from the growing catalog of games within its platform by adding payment for select games, inserting ads, and implementing in-app purchases. Read on to learn more.
Netflix Heavily Investing Into Gaming
Looking to Further Monetize Games Despite Contrary Claims of Co-Chief Executive
In a report made by Wall Street Journal, it was discovered that Netflix higher-ups were figuring out more ways to earn more from its Gaming division. Some methods being considered are bumping the prices of some select games to make them seem “premium,” implementing in-app purchases or microtransactions, or inserting ads.
This would be a big departure from how Netflix Games initially launched back in November 2021, being a fully free-to-play service for all paid subscribers. It was first populated with titles either based on original Netflix IPs or third-party mobile games. Recently, however, Netflix has been testing the waters on streaming games onto TVs and PC browsers, utilizing smartphones as controllers.
This innovation into games by utilizing their streaming platform could be a sign of their steadfast interest in expanding their gaming division. And alongside that comes their plans to include as much monetization as they can, which could be a major reason why Netflix executives have been discussing the inclusion of more avenues for profit.
It would, however, be very contrary to what Netflix Co-Chief Executive Greg Peters said in an investors meeting in April 2023.
“We want to have a differentiated gaming experience, and part of that is giving game creators the ability to think about building games purely from the perspective of player enjoyment and not having to worry about other forms of monetization, whether it be ads or in-game payment.”
Netflix Yet to Finalize Any Decision, but Has Broken Promises Before
Not everything is set in stone, as more internal discussions within the company are yet to be had to finalize any decision. However, it won’t be the first time Netflix promised not to do something to then go on and do it anyway. Previously, Netflix renounced plans to implement any ads on its platform, but has since then added an ad-supported tier at a lower price. They also previously encouraged freely sharing account passwords between everyone, only to eventually restrict it to one household.
More Netflix Games in Development and to be Added in the Future
Netflix’s ever-growing catalog of games is something to look forward to, with more interesting titles being added as of late. Recently, the indie-roguelike Hades was announced to heavy fanfare, garnering excitement to its eventual release for the gaming service.
Netflix knows that it can’t make do with merely porting existing games onto its platform, and so they have been heavily investing into developing its own games. Over the past few years, the streaming giant has been acquiring game development studios and a reported 10+ games currently being developed in-house. This marks remarkable growth from its early origins of merely housing mobile games for the platform.
This big shift into developing bigger, higher-end games is definitely a risky venture, specially with how it was reported that only 1% of Netflix subscribers actually made use of its gaming service in 2022. However, Netflix Head of Gaming, Mike Verdu, says there is no reason to worry. Though the projections and the numbers are still small, Verdu states “We’re really pleased with the traction that we’ve had so far.” He mentions that they don’t “make a lot of big bets,” but will be patient and attentive to the risky ones they make(via Eurogamer).
His faith isn’t misplaced, as most recently, the Grand Theft Auto Trilogy - Definitive Edition was launched for their gaming service. In its month of release in December 2023, it accounted for 11% of the service’s downloads.
Netflix’s continuous investment into the gaming industry is surely a curious case, where from the outside, it seems like the streaming giant is merely throwing money at the problem and expecting results. Although very gradual, it does look like their patient investment might take a turn for the better in the future as their roster of games continues to grow.
Sources:
Wall Street Journal | Netflix Considers Ways to Make Money From Videogames in Possible Pivot
Netflix Starting From $6.99 a Month
An Update on Sharing
Eurogamer | Netflix developing over 10 games in-house currently
Eurogamer | Less than 1% of Netflix subscribers play its games daily
