Why Netflix is getting into video games

Analysis: It is clear that the company chose video games as one of the company’s first significant non-video-related business ventures because of two themes: data and intellectual property.

for the first time, Netflix The executives spoke at length about the company’s video gaming aspirations. His reasoning for expanding the company’s product offerings was very… Netflixian.

Superficially, Netflix will begin offering customers mobile games at no extra charge to add value to the service. Members in the US and Canada 400,000. decline of In the second quarter, there is a sign that the business may be reaching a near-term saturation point. Adding video games can attract new customers while reducing churn.

“The success of this initiative is fundamentally about great games,” said Greg Peters, Netflix’s chief operating officer and chief product officer. said during his company’s second quarter earnings conference call on Tuesday. “We think we can provide more entertainment value [games]”

But pull the curtain back, and it’s clear that Netflix chose video games as one of the company’s first significant non-related business ventures because of two themes: data and intellectual property.

Those two concepts are core to Netflix’s success as a video streaming service. Netflix has revolutionized streaming video by using streaming video data to recommend what a person should watch and guide original content production. The value of proprietary intellectual property has led to a global shift in media distribution, as companies increasingly hold their own creations and distribute content themselves via streaming rather than widely selling programming to others.

The results have seen Netflix dominate the entertainment world with 209 million global subscribers and a trail of copycat subscription streaming services from every media company. He has also pioneered a creative product that some people find gouache, not in the spirit of making art.

“These streaming services are making something they call ‘movies,'” said Barry Diller, who once ran Paramount Pictures and 20th Century Fox. earlier this month. “They’re not movies. They’re some weird algorithmic process that’s made things that last 100 minutes or so.”

Netflix’s gaming strategy

Peters acknowledged that the company will learn and grow and refocus our investments based on “what we see is working” with the game. He said the gaming provides “intentionally”, allowing users to dictate the characters they want to spend time with in different parts of the gaming world.

User-based decision making will not be overlooked by Netflix. Rather, it will guide Netflix – not only in making better games but also in making creative decisions. If there is one character in the Netflix-owned series that is heavily used in gaming, one can easily imagine that that character will be featured more prominently in the upcoming season of the show.

“Maybe someday we’ll see a game that spawns a movie or a series,” Peters said. “It would be an amazing place to see the really rich interplay between these different forms of entertainment.”

While Peters noted that Netflix will license some games — like Netflix built its video service on the back of licensing TV shows and movies — he noted that Netflix’s intellectual property is a key differentiating factor against other rivals in the space.

“the first of them” [differentiating factors] It’s about the IP we built,” Peters said. “We know fans of our stories want to go deeper and further connect. The great thing about interactive is that you can provide universes that provide a significant amount of time where people can connect. and can search.”

That “critical timing” is yet another important Netflix principle — keeping users within the company’s ecosystem. So Netflix founder and co-CEO Reed Hastings once said That sleep should also be considered a Netflix competition.

Gaming won’t become an independent driver of revenue anytime soon. Hastings referred to Netflix as “a one-product company with a bunch of supporting elements.” But for anyone who was confused as to why Netflix shied away from its famous focus on streaming, the logic is clear today: Hastings hopes that what works for video will work again for gaming.

Credit: www.nbcnews.com /

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