By
Chimamanda U. Martha
April 12th, 2024
By moving into game developments, Netflix believes that this would be another way of luring new subscribers and also keeping the old ones.
To expand its business scope, Netflix Inc (NASDAQ: NFLX) the video streaming TV company, is planning to introduce video games, and it is hiring an ex-Electronic Arts Inc and Facebook Inc (NASDAQ: FB) executive to lead the team.
NFLX stock has positively reacted to the news. Yesterday it closed with a 1.34% rise, at $547.95, today in the pre-market it is also in the green. NFLX stock is trading at $561 (+2.38%).
Mike Verdu, Facebook’s erstwhile Vice President who was saddled with developing games and other contents for the Oculus virtual-reality headsets, would be reporting directly to the Chief Operating Officer of Netflix, Greg Peters. In his new role, he is expected to use his vast experience and expertise in the field to help the video platform in game development.
Per a Bloomberg report, “the idea is to offer video games on Netflix’s streaming platform within the next year.” It was also revealed that the firm plans to make the game appear as a programming genre like it did with its previous developments like documentaries and stand-up specials. Also, the report stated that “the company doesn’t currently plan to charge extra for the content.”
The new moves come on the heels of the firm’s inability to add more subscribers to its list, according to its recent quarterly report. While it has remained ahead of its other competitors like Disney+ and HBO Max, the video streaming company wants to keep growing.
This is why it has added new features like building out its kids’ programming, selling merchandise through its online shop, and bringing in renowned movie producer cum director Steven Spielberg to help the firm add more movies to its portfolio.
So by moving into game developments, Netflix believes that this would be another way of luring new subscribers and also keeping the old ones. It also would be a way for the firm to stay ahead of others as none of its current rivals has branched into this field yet.
Already, the firm is advertising game development related positions on its website, an indication that it is looking to fill the new department of its organization.
Netflix Quarterly Report on the Horizon amid Its Video Games Plans
According to available information, Netflix’s second-quarter report is a matter of days away. Analysts have predicted that the company would record strong growth in its revenue, however, indications of its subscriber growth remain low.
According to a report, “following a year of abnormally strong subscriber growth, when demand was pulled forward as people were staying at home and looking for ways to stay entertained, the streaming service is now facing some very tough year-ago comparisons.”
Many analysts have predicted that the company would have added less than 2 million subscribers within this period.