Several months after announcing its intention to tackle the video game market, Netflix finally took action on Wednesday, releasing five new titles, available free on Android to subscribers to the service.
This is a long-term project for the company, which intends not only to launch its games on iOS soon, but above all to develop this component as an integral part of its distribution service. Here are five Netflix wishes that spell out your interest in the gaming industry.
Grab the attention of subscribers
For online distribution services, the struggle to acquire subscribers is above all a struggle to hold their attention. In 2017, Netflix CEO Reed Hastings claimed that his company’s biggest competitor was not another streaming service, but the dream.
When it comes to deciding which platform to subscribe to or stay subscribed to, consumers must, after all, choose based on their budget, but also the time they have available. A $ 10 a month Netflix plan is not expensive, but it is still too much for those who do not spend the night watching their movies and series.
Providing video games allows subscribers to grab the attention of subscribers at other times, such as in transportation, or even when they are watching a series broadcast by a competitor, increasing the value of the service to them.
Create brand attachment
Of the five games Netflix offers so far, two are from the Stranger Things series (the others are small arcade or puzzle games).
Hopefully, other movies and series are entitled to such treatment. For example, a game like Battle Royale, where one hundred players compete online until only one winner remains, based on games for children would be a hit at the beginning of the second season of the Squid Game series.
Video games can create a link with Netflix properties and even benefit from a synergy, since the scenes seen on the small screen can influence the action of a game and vice versa.
In a call to investors last summer, Netflix announced its intention to use the data accumulated with the games to influence its programming. Not only could the success of a video game lead to the creation of a new series, but the popularity of a character in a game could lead Netflix to increase its screen presence, for example.
The vision won’t necessarily emerge this way, but gaming habits can still allow Netflix to get to know its subscribers a little better.
Justify higher prices
Netflix games are currently free to all subscribers, with no ads or in-app purchases. However, if this new stream of operations is successful, expect it to be reserved for the company’s more expensive plans, to encourage members to pay more per month.
Netflix will find it increasingly difficult to grow its subscriber base. In particular, due to the high competition from other services, but also due to its already high penetration rate in developed countries. After all, 52% of Quebecers had access to Netflix last year, according to the NETendances 2020 study.
Therefore, video games could allow the company to generate more revenue despite modest growth, without raising the price of its basic packages.
Do not get ahead
Netflix is aware that several other platforms already have the advantage of offering additional services. Subscribers to Amazon Prime, for example, get access to Prime Video, but also music and free shipping. Apple One subscribers can enjoy Apple TV +, plus Apple Arcade, Apple Music, and online storage.
For someone who does not have time to see everything and who does not want to pay for different subscriptions, the presence of another service, such as games or music, could weigh heavily on the scale. This will have nothing to reassure the Québec broadcasting platforms, which already have to fight unevenly against the international giants, and whose main competitor has just added a string to their bow.
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