Netflix is really into gaming. In its quarterly letter to shareholders, the video streaming service announced that it is currently in the “early stage” of games adoption. Regarding the income statement, Netflix founder and co-CEO Reed Hastings said they “insist” on it, and COO and Chief Product Officer Greg Peters called games “a core part of our subscription offering.” Netflix will start with mobile games – as most of its members have phones, and the platform has many developers – who will use the existing properties of movies and TV, but will also license games from other sources to build their catalog, just like it does on the entertainment front. … Netflix will also greenlit standalone games, which could one day turn into an original Netflix movie or series, according to Peters.
Hastings repeatedly noted that Fortnite Battle Royale was among the competitors of Netflix – along with YouTube, TikTok and … sleep. And well, Netflix is now trying to come to dinner with Fortnite, it looks like, although unlike many mobile games, Netflix games won’t be free. They will be offered as part of a Netflix subscription at no additional cost. Think of it as some sort of opposition to Apple One (which offers Apple TV + and Apple Arcade together, in addition to more Apple services), as well as the lines of more basic game subscription services like Xbox Game Pass, Google Play Pass, EA Play and PlayStation Now and more.
But Peters isn’t worried about tying games to a subscription model. In fact, he thinks – like other game subscription service providers – that this allows Netflix to focus on a gaming experience that is “currently under-served by dominant monetization models and games.” We don’t need to think about advertising. We don’t need to think about in-app purchases or other monetization. We don’t have to think about shopping by name. ” Peters noted that Netflix is already in talks with many developers who put “all their creative energy into great gameplay without worrying about other considerations.”
Another big reason Netflix is into gaming is engagement. While movies and TV shows offer a linear, limited experience, games allow fans to create their own travel experiences. Peters added: “We’re in the business of creating these amazing worlds, great storylines and incredible characters. And we know that fans of these stories want deeper. They want to continue studying. In fact, they want to direct a little where their energy goes. And what’s great about interactivity is, first, that you can provide universes that just provide a really significant amount of time for people to engage in and explore. They can also give a little premeditation. Where do they want to explore? What are the characters? In which parts of the world? What parts of the schedule? There are many interesting things that I think we can do in this space. ”
Now, this isn’t Netflix’s first foray into the gaming space. He previously partnered with developers to create a couple of Stranger Things games – and offered a number of interactive games on his platform, such as Black Mirror: Bandersnatch, You vs. Wild and Unbreakable Kimmy Schmidt: Kimmy vs. the Reverend. , in addition to a children’s tablet. But this expansion into games is a multi-year effort for Netflix, Peters noted, and so it starts relatively little with mobile-only games. However, it will not stop there. While mobile is the mainstream of Netflix gaming right now, it will eventually be available on all devices, including TVs, smart devices and – well, game consoles, Peters said.