Challenges in the gaming sector: Only one percent of Netflix subscribers use the offer

The streaming giant Netflix ventured into the gaming sector around two years ago. However, the offer still doesn’t seem to be well received by subscribers, as only one percent of Netflix customers use the games offer.

• In 2021, Netflix made a foray into gaming
• Netflix subscribers show little interest in games
• New efforts to convince users of the offer

Around two years ago, Netflix first announced its foray into the gaming sector. The plan: Lay a foundation for future sources of income.

Netflix is ​​making an effort in the gaming space

“The more potential sources of income [Netflix] brings to market, the more things they can highlight on an earnings call in the future when password sharing has had its day and they’re not attracting new subscribers,” CNBC quoted Insider Intelligence analyst Ross Benes as saying. Netflix had already announced in 2021 that gaming division seriously. The streaming giant planned to introduce titles as standalone apps for mobile phones. The strategy: Subscribers should be kept happy between seasons of their favorite series. However, they still show little interest in the offer.

Netflix’s motto for gaming: “Crawl, walk, run”

According to Netflix co-CEO Greg Peters, this development was expected. “This development is no different from what we have seen before,” CNBC quoted Peters as saying. “When we established a new region – or when we introduced new genres like unscripted,” we had to “crawl, walk, run, but we see a tremendous opportunity to build core entertainment value over the long term,” Peters explained in the advance recorded company conference call. The co-CEO compared the process to a toddler first learning to crawl, then walking, and finally running. But Netflix doesn’t seem to be able to get beyond the state of crawling so far.

Benes says convincing existing subscribers to download and play mobile games is a challenge, according to CNBC. As data from video analytics company Conviva shows, more than three quarters of all streaming service subscriptions are used on a television screen. If Netflix customers mainly stream via TV, marketing the mobile game library is of course difficult.

1 percent of users play Netflix games

According to data from Apptopia, Netflix games were downloaded 70.5 million times worldwide in September this year. An average of 2.2 million users played one or more Netflix games per day. In January of this year, the daily number of users peaked at 2.7 million, but between March and July the number fell back below the two million mark. These figures from Apptopia suggest that less than one percent of Netflix’s 247.15 million subscribers play a game from the streaming giant every day. And this despite the fact that the number of games tripled last year: Netflix expanded the range from 24 to 77 games in 2022.

New idea to convince gaming enthusiasts

In the meantime, Netflix has begun testing new games that can be played on any device, CNBC reports Mike Verdu, Netflix vice president of gaming. To play games on the TV, users would then either need their mobile phone as a controller, which they can access via the Netflix app on Android, or a separate controller-specific app via iOSaccording to CNBC.

Netflix is ​​also planning to convert more of its well-known series such as Wednesday, Black Mirror and Squid Game into mobile games, as the Wall Street Journal reports.

During the conference call, co-CEO Peters continued to say that gaming engagement “impacts core business metrics in a way that has a positive impact on films and series.” “It’s a completely different business model. The hope is that over time it will become a natural way to play games no matter where you are,” CNBC quoted Verdu as saying.

Editorial team finanzen.net

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