Netflix claims that several video game developers "really like" its expansion into gaming.
According to The Hollywood Reporter, Netflix product chief Greg Peters said on an earnings call, "We’re finding that many game developers really like that concept and that focus and this idea of being able to put all of their creative energy into just great gameplay..."
Peters continues on to say that offering games through Netflix ensures developers will not need to "worry about the other considerations that they have typically had to trade off with just making compelling games."
While the leap into gaming may be a significant move for Netflix, the company doesn't expect games to function as an individual revenue stream but rather boost Netflix's overall value. "They’re not a profit pool of any material size on their own," said co-CEO Reed Hastings, during the earnings call.
"The reason we’re doing them is to help the subscription service grow and be more important in people’s lives," said Hastings. "So, I would say, really, we’re a one-product company with a bunch of supporting elements that help that product give incredible satisfaction for consumers and a monetizing engine for investors."
Given the consistent growth of the gaming industry, Netflix's move to offer subscribers some form of gaming entertainment is a calculated one. The mobile games offered by the company will not result in an increased subscription fee for users. Greg Peters previously stated that Netflix's subscription model, "yields some opportunities to focus on a set of game experiences that are currently underserved by the sort of dominant monetization models in games. We don't have to think about ads, we don't have to think about in-game purchases or other monetization."
While Netflix has yet to confirm when subscribers can expect mobile games to appear on the app, the company has already hired, Mike Verdu, an industry veteran to facilitate the expansion. Verdu has previously served as Facebook's vice president of virtual and augmented reality content and the senior vice president of EA Mobile.
Source: The Hollywood Reporter
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