September 29, 2023

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Netflix limits its video game viewing for the next chapter as growth slows

Netflix limits its video game viewing for the next chapter as growth slows

Netflix launched its game streaming service at the end of 2021. Since then, it has expanded to buy multiple development studios.
Jakub Porzycki/NurPhoto via Getty Images

  • Netflix launched its video game streaming service in November 2021, investing in mobile app games.
  • The streaming giant has since bought several development studios and increased its game-focused staff.
  • The pivot to interactive streaming comes as Netflix’s growth slows to single digits.

As Netflix hunts down younger audiences and struggles to keep its existing subscribers content, the streaming giant has set its sights on a new chapter: video games.

With competitors like HBO’s Max and Disney+ launched and rebranded in recent years, limiting the number of shows available on Netflix as each network creates its own central hub for content, the OG streaming service has had to focus again on thinking about its next chapter. , this time is investing heavily in the world of interactive entertainment.

“We’re competing with (and losing to) more Fortnite than HBO, the company books in its 2019 earnings report, referring to the viral sensation for online gaming.

In late 2021, Netflix began co-creating its own mobile app games. The company brought in dozens of new employees and set up a dedicated studio in Helsinki, Finland, to create new streaming game titles, Insider reports.

Wednesday, Netflix It released its latest game, a graphic adventure game developed by Night School Studio, called “OXENFREE II: Lost Signals.” The sequel to the point-and-click supernatural thriller is available on the Netflix mobile app, Steam, PlayStation, and Nintendo Switch.

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Netflix representatives did not immediately respond to Insider’s request for comment.

The video game pivot comes as Netflix’s growth has slowed dramatically – according to the records it keeps Stock analysis, the company’s annual growth has not been less than 12% until last year. In 2022, even though revenue was at $31.62 billion, the company ended the year with growth of just 6.46%, down from 18.81% in 2021 and 24.01% in 2020.

It’s still not clear if Netflix’s latest venture will be a success, especially with other companies like Google shutting down their game streaming service after… less than three yearsbut the company has pioneered before: In 2007, Netflix spearheaded the entire entertainment industry’s transition to streaming.

So far, Netlfix’s slow but steady pace, especially compared to its competitors, seems to be working in its favor with creators, ringer mentioned.

Night School Studio was the first acquisition of the Netflix game studio and was acquired in September of 2021, a month after the streamer released two beta games that were related to the ‘Stranger Things’ series, Techcrunch mentioned.

“We’ve seen a lot of guys come into space and try to make big swings,” Ringer, Knightskool founder Sean Krankle, said this week. “[We heard] Early on, that approach was very cautious and measured and it wouldn’t be, ‘Let’s go up to the top of the mountain and put the Netflix flag up there and [say] We are changing the industry. “

Disclosure: Matthias Dupfner, CEO of Axel Springer, Business Insider’s parent company, is on the Netflix board.

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