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Netflix is foraying in to the gaming arena
“We are in the business of making these amazing worlds and great storylines and incredible characters” in its original movies and TV series, Greg Peters,
Despite a carefully choreographed series of announcements about its expansions into retail, podcasts and gaming in the weeks leading up to its earnings report, investors have remained focused on the challenges facing its core business, as economies reopen and streaming competition intensifies.
He also sees scope for Netflix to offer games developers and players a better deal through subscriptions. “We don’t have to think about ads. We don’t have to think about in-game purchases or other monetisation,” Peters said.
“Entertainment is converging,” Severin said. “Whether you are a video, games, music, sports or a social media proposition, you ultimately compete for the same entertainment time and money.”
Analysts estimate tens of millions of people subscribe to console-based services such as Xbox Game Pass or PlayStation Plus.
Hastings, who famously says he likes to make “as few decisions as possible”, has finally decided to push the start button on Netflix’s gaming business.
As Netflix looks for new ways to retain its 209m paying subscribers, games could be one way to reduce churn, as Disney, Apple, WarnerMedia, Comcast, Discovery and ViacomCBS all look to lure away its subscribers.
Sign-ups in North America have ground to a halt in the past six months. From April through June, 430,000 people cancelled their Netflix subscriptions in the US and Canada.