Netflix has been an undeniable powerhouse in the streaming business, transforming the way we consume content, from blockbuster series to original films. However, when it comes to their foray into gaming, the response from subscribers has been rather tepid. With the gaming library growing from 24 to 77 titles in the last year, one would expect a resounding enthusiasm. But it appears that Netflix is taking a familiar approach – a crawl-walk-run strategy – to build a long-term centre of value in the gaming industry.
Netflix’s co-CEO, Greg Peters, emphasized that the trajectory of their gaming expansion isn’t unprecedented. Drawing parallels to their introduction of new genres and regions, he highlighted the need to lay the foundation for long-term success. This strategy involves offering games as standalone mobile apps, providing subscribers with an entertainment option in between binge-watching their favorite series, such as “Stranger Things.”
However, it’s not all smooth sailing for Netflix in the gaming world. Encouraging existing subscribers to download and engage with mobile games has proven to be a challenge. The majority of streaming service usage occurs on television screens, making it difficult to seamlessly integrate gaming into the streaming experience. Netflix’s games have been downloaded globally over 70.5 million times as of September 2023, with the highest peak of 2.2 million users playing one or more of Netflix’s games daily. These numbers are far from negligible, but they represent less than 1% of Netflix’s massive 247.15 million subscribers. Moreover, Netflix lags behind prominent mobile gaming publishers in terms of downloads.
Despite concerns that Netflix might abandon its gaming ambitions, recent reports suggest otherwise. The Wall Street Journal revealed that Netflix intends to bring “Grand Theft Auto” through a licensing deal. These moves indicate that Netflix is committed to expanding its gaming presence and leveraging its popular intellectual properties to attract more gamers.
So what does it all say? The gaming library and the decision makers of Netflix Gaming might be growing, but it has had little to no effect on the actual subscribers.