Netflix is a household name that we all know and love but they have seen a massive decrease in new subscribers in the second quarter this year. 1.5 million may seem a lot, but compared to the same quarter last year; 10 million it’s a massive decline and they’re now looking to move into gaming linked to popular shows.
The streaming giant is known for series such as The Crown and Bridgerton said games come at no extra cost for paying customers. Their initial steps are said to be into Netflix mobile gaming.
Netflix shared the much-anticipated move is due to their slowest growth in eight years after only gaining 1.5 million subscribers in the April-June quarter.
The pandemic saw a huge growth in new subscribers totalling a whopping 37 million throughout 2020.
Although their growth slowed the company now has around 209 million subscribers and totted up revenues of £5.4bn ($7.3bn) for the last quarter. £0.88bn ($1.2bn) more than last year and profits increased by 88% £1bn ($1.35bn).
Greg Peters chief operating officer said: “We know that fans of those stories want to go deeper. They want to engage further.”
Previously, Netflix dipped their toes into video games with some titles linked to The Dark Crystal: Age of Resistance and Stranger Things.
Reed Hastings Co-chief executive gaming and other things like merch and podcasts are “supporting elements” to retain and attract customers to its core purpose of streaming videos.
Senior equity analyst at Hargreaves Lansdown stockbrokers, Sophie Lund-Yates said:
“A foray into the world of gaming might simply sound like a nice idea, but it’s an important next step in Netflix’s efforts to keep our eyes on its screens.
“Netflix’s engine drivers need some grease.
“People rushed to sign up during the pandemic, but now things are returning to normal, that source of extra horsepower is no more, and means the group added its lowest number of new subscribers in years last quarter.
“A very high proportion of younger people already have a Netflix subscription, so getting them hooked on games, by leveraging its original content is a potential stroke of genius.”
Would you venture into the world of Netflix gaming?
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