Netflix is getting more and more active in the game market. Could such a move by the entertainment giant mean a major problem for the industry or at least a reorganization of market leaders?
This seems to be becoming increasingly likely, given that Netflix was very slow to enter the gaming industry initially, but is now making even bigger strides into this market by purchasing Next Games – or does it just seem that way?
Netflix chose the same path to stream years ago. The company started by buying licenses for popular movies and TV shows before deciding to create its own productions. So it has slowly built an ever-growing user base.
Why is Netflix getting into gaming?
Netflix can no longer ignore how powerful computer and video games are, especially among middle-aged viewers. Likewise, the largest streaming platform has noted for some time how well its games are in the fight for this age group.
The aforementioned big acquisition comes in the course of developing the Metaverse concept, which will surely be connected to the gaming industry in many ways. However, the gaming industry is first and foremost a culture that is becoming stronger and more interactive with its audience. This is a fast growing customer base because never before have so many people played games in history!
Could Netflix soon be found in the online casino sector?
The world of online gambling is also included in the huge growth of the gaming industry: there are 3.9 billion users who have smartphones on our planet and most of them also use their mobile phones to play games.
The growth of online players has reached 6.1%, and statistics predict 4.5 billion customers by 2024. So it will not be surprising in the near future to find online casinos that offer the best free spins on the Netflix platform.
With such an expectation, one must not forget that the gambling market has little in common with the movie market, even if it also includes broadcasting. Netflix’s strength in the streaming market is not the only driver of its success, as can also be seen from the digital giants of the typical game industry: but they are not universally known as leaders in the eyes of gamers.
Could Netflix also become a market leader in the gaming market?
Netflix has made a name for itself as a leading video streaming company, but the company clearly wants to go beyond just showing movies and TV shows to diversify its portfolio with other content as well. The company’s entry into the gaming business is sure to intensify the competition.
The streaming giant will compete with Microsoft, Google and Apple, which have already started offering their services to players in different parts of the world. So Netflix has a lot of catching up to do when it comes to building a solid gaming platform.
On the plus side, this isn’t the first time Netflix has entered the gaming arena. The company already has some experience developing games based on popular TV series, including Stranger Things, Money Heist, Black Mirror and Bandersnatch.
With this in mind, the real challenge for the video streaming company is to bring popular third-party titles to its platform. Only time will tell if the company can make this happen, especially at a time when things are not going well for Netflix.
Big losses for Netflix
The company’s revenue report for the first quarter of the year shows that the streaming platform lost about 200,000 subscribers compared to the fourth quarter of 2021. Moreover, trends indicate that it is expected to lose another 2 million subscribers in the current second quarter of the year.
Netflix is currently facing stiff competition from streaming companies. The largest loss of subscribers in the first quarter of 2022 is due, on the one hand, to the increase in service prices, and on the other hand, to the withdrawal from the Russian market.
Some market experts have questioned the company’s growth plans that include launching a cheaper or free advertising service. Also, the streaming giant’s plans to combat password sharing (or at least charge users extra for sharing an account) may turn more people away from Netflix.
The company estimates that more than 100 million families are currently using the service for free with subscriptions from friends and acquaintances.
The streaming market is developing, and the high expectations placed on Netflix are dwindling. Despite this, Netflix remains the world’s leading streaming service, with over 220 million subscribers.
The reason for this has always been that the company has focused on creating its own content and sees its strength in the number of new products it uploads each week. Netflix has become a well-established brand in this sector, positioning itself as a complete, yet independent and complete entity in the film industry.
However, the film industry is still and the popular platform is still associated with series, movies, and documentaries. Thus, entering new territories cannot be considered a revolution, let alone a threat to other players in the electronic entertainment market. Movies and games, while often overlapping, are completely separate domains.
27 June 2022