One of the most widely used and known OTT platforms, Netflix, is now attempting to enter the gaming world after having been through an eventual decline in its yearly subscriptions and memberships.
Netflix Inc said it will go further into online games as the television and Movie streaming business forecasted slow membership growth due to intense competition and the easing of flu prohibitions that had kept people back home. Through after trading on Tuesday, the company’s stock price fell at $531.10.
In a recent interrogation with the company, the following was said in relation to its roots expanding into the gaming sector-
“We’re also in the early stages of further expanding into games, building on our earlier efforts around interactivity (eg, Black Mirror Bandersnatch) and our Stranger Things games. We view gaming as another new content category for us, similar to our expansion into original films, animation, and unscripted TV. Games will be included in members’ Netflix subscription at no additional cost similar to films and series. Initially, we’ll be primarily focused on games for mobile devices. We’re excited as ever about our movies and TV series offering and we expect a long runway of increasing investment and growth across all of our existing content categories, but since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games.”
After a surge in new consumers in 2020, spurred by stay-at-home orders to combat the COVID-19 epidemic, Netflix is seeing a steep drop in new subscribers. Netflix lost around 430,000 members in the second quarter in the United States and Canada, only the third sequential decrease in ten years.
The streaming video pioneer said that it was in the process of extending its video game services, which would be available to members at no additional cost. Initially, the firm will concentrate on mobile gaming.
In its quarterly statement to shareholders, the firm added, “We regard gaming as another new content area for us, comparable to our growth into original films, animation, and unscripted TV.”
“We understand that admirers of those stories want to learn more about them. They want to continue the conversation “According to Peters. Netflix has ventured into online games, with names such as “Stranger Things” and “The Dark Crystal: Age of Resistance” being tied to shows.
Following years of fast development, some experts believe the business that controls streaming video has to find new methods to jump-start memberships. Thus according to eMarketer, Netflix’s share of membership streaming video revenues in the United States will fall to 30.8 percent by the end of 2021, down from almost 50 percent in 2018.
“As competitiveness in the streaming business accelerates, Netflix produced another lackluster quarter,” said Investing.com senior researcher Jesse Cohen.
COVID-19 had an influence on TV production this year, leaving Netflix with a tiny selection of new shows. Simultaneously while, customers were drawn to Walt Disney Co’s Disney+, AT&T Inc’s HBO Max, and other services, while summer blockbusters returned to theatres. People were also enticed out of their houses and away from their screens when pandemic safety precautions were eased. Revenue for the first half of the year was $2.97 per share, much below the average expectation of $3.16.
In the second quarter of 2021, Netflix pledges a more robust roster, including new seasons of “You,” “Money Heist,” and “The Witcher.”