MUMBAI: Netflix Inc has confirmed plans to expand beyond its core proposition as a movie and TV streaming service into video gaming.
In a letter to investors, the streaming video pioneer formally announced that they were going to expand into gaming, with mobile games as their first port of entry.
Netflix’s latest letter to investors reads: “We’re also in the early stages of further expanding into games, building on our earlier efforts around interactivity (eg, Black Mirror Bandersnatch) and our Stranger Things games.
“We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV.
“Games will be included in members’ Netflix subscription at no additional cost similar to films and series. Initially, we’ll be primarily focused on games for mobile devices.
“We’re excited as ever about our movies and TV series offering and we expect a long runway of increasing investment and growth across all of our existing content categories, but since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games.”
Netflix has dabbled in video games with a few titles linked to series including “Stranger Things” and “The Dark Crystal: Age of Resistance.”
Analysts told Reuters that the video streamer needs to find new ways to jump-start subscriptions after years of rapid expansion.
According to eMarketer, Netflix’s share of U.S. revenue from subscription streaming video will shrink to 30.8% by the end of 2021, from nearly 50% in 2018.
“Netflix delivered another underwhelming quarter as competition in the streaming space heats up,” Investing.com senior analyst Jesse Cohen told the newswire.
“The absence of any new looming growth catalysts has been one of the main reasons for Netflix’s relatively mild performance this year.”
