Netflix launches into video games

Competition is fierce between subscription video platforms. Amazon, Apple TV +, HBO Max and especially the juggernaut Disney + are increasingly nibbling on Netflix’s shares. On Tuesday July 20, the company presented its results. If in the second quarter of 2021, Netflix garnered $ 7.3 billion in sales for a net profit of 1.35 billion (twice as much as last year), management regrets a slowdown in its growth. number of subscribers. They are currently 210 million: 5.5 million more in the second half of the year, while nearly 430,000 accounts have been terminated in the United States. Figures below Netflix’s expectations.

The pioneer of paid streaming will diversify its offer. An online merchandise store has already opened and Reed Hastings, the director of Netflix, has announced the upcoming release of video games on the platform, without increasing the price of the subscription. These will be offered on smartphones and tablets and adapted from their own flagship licenses.

Keep the viewer’s attention

Netflix’s plan is not to fight the video game giants. It is about strengthening the service of the platform and not creating a separate source of profit. ” It’s a bit of a bonus, indicates Louis Wiart, specialist in the economics of platforms, who sees this project as an additional means of building subscriber loyalty. Lhe goal is to keep it within the Netflix environment, thanks to the very large number of hours that can be spent in front of a video game.

→ READ: Stadia, Google’s new on-demand video game service

The bottom line is that Netflix wants to become the sole, or at least major, interlocutor of the household for home audiovisual entertainment., adds Pascal Lechevallier, president of What’s Hot, a consulting firm specializing in new media. Faced with increasingly fierce competition on subscription video, we need to stand out with other opportunities. “

A booming market

Amazon has also done this with its Prime service: this one-time subscription gives access to a service of movies, series, music, books and video games on a single screen. This diversification is the best way to hold the consumer’s attention as long as possible, the main objective of these platforms.

Video games seemed the best opportunity for Netflix. The platform has already experimented in this universe in 2017 with the mobile game Stranger Things, derived from one of the most popular original series, and Black Mirror: Bandersnatch, an interactive film released in 2018. The sector is buoyant since in France, mobile games represent 27% of overall video game sales.


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