Remember the good old times when we used to gather at a random person’s apartment in the whole building to watch that one special show every weekend? Yeah, me neither. So, that’s a story I can’t use to act like some wise old person in my life. However, I do remember the time when I had to share the television with my parents or siblings because you couldn’t watch different things back in the early 2000s. Television was the only source of media entertainment at that time, and having multiple sets was a privilege beyond imagination. Times have changed, and streaming services like Netflix, Amazon Prime, Apple TV, and others are the current frontrunners in today’s entertainment world. This industry seems to keep growing as more and more companies follow suit. Recently, to make their websites more interactive, Over-the-Top (OTT) streaming services have started to integrate gaming with their content, and it’s working.

At its essence, an OTT (Over the Top) streaming service functions by using a platform (the internet) and provides a library of content to each subscribed individual. Like most websites and applications, OTT streaming services want their customers hooked on their website. However, with so many options, it’s natural to get overwhelmed, which can lead to an overall decline in viewership. Similar streaming services providing the same dimensions of content make the ecosystem tougher for any company to thrive, eventually making the field competitive. To stand out, Netflix started using games. Named “Netflix Games,” it became a separate feature offered by a streaming service, never before seen in the hemisphere of OTT services. However, this is not the first time Netflix ventured into uncharted territory. An example of a solid strategy would be how Netflix made it easy to access them on any and all devices so that a person can conveniently watch movies on the go. This led to Netflix having an app and integrating with gaming consoles, paving the way for other OTT streaming services.

So, what does Netflix Games look like? Does this mean Netflix eventually wants to transform itself into a gaming platform? Is this a strategy to gain the attention of gamers so that they can expand their viewership? To put it simply, they are expanding their horizons. More time on the platform means more profit for them, and they can keep the content growing. Hence, this is their approach to retaining their customers. This also parallels Google’s approach from many years ago, where small gestures, like the offline dinosaur game in Chrome, demonstrate care and commitment.

Initially, games on Netflix included popular titles like “Stranger Things,” fan favourites, and names that resonated with the emotions fans associated with Netflix. Before the introduction of games, Netflix was seen producing interactive movies, most notably Bandersnatch, an episode of Black Mirror where viewers are presented with multiple options about the decisions of the protagonist, and the story progresses accordingly. Seeing the reception, Netflix went into overdrive and hired big-shot executives and creative directors from the gaming industry. Because, at its core, Netflix has people who have never worked in the gaming industry, so trying to lure a community of people without knowing their demands would prove to be quite baseless. With their board currently, the library is flooded with various genres and even offers popular titles like Grand Theft Auto. And from the looks of it, they plan to expand it each year.

So, what do you need to play these games? Nothing really. Just an internet connection and a Netflix subscription. This has established goodwill among the gaming community with its no in-app purchases and ads; something that is missing in the smartphone gaming scene. As a result, as long as people don’t cancel their Netflix subscription and the device is compatible with the requirements of the game, things should be fine.

But what is the aftermath of the entire proceeding? For starters, Netflix has invested about $1 billion in their gaming division. However, the numbers may not be hitting the targets they want to achieve. A proper explanation would be Netflix is in it for the long game. Their investment has also allowed a lot of developers to create games without the need to integrate advertisements. While Netflix literally did something no one ever thought of, things might still backfire. To gain traction in the mobile gaming industry, it is competing with the Google Play Store and Apple Store. They do have an edge over their competition because of no advertisements and microtransactions, even though the traction isn’t there yet. But to get back on the road for compensating the investment, Netflix might include microtransactions or advertisements, which would surely surrender the advantage they have.

Since August 2022, only 1% of their subscription base has downloaded titles from Netflix Games. However, there has been a rise in the fiscal year of 2023 when they introduced popular gaming titles like Grand Theft Auto. Nonetheless, they are still miles away from competing against big-name gaming corporations and should not immediately wade into the waters with the big sharks. Furthermore, just expanding the library and hoping people would just hop on the hype train doesn’t necessarily ensure growth. Integration of big-name titles that produce a momentary uprising doesn’t also mean that the service is working. In this regard, Netflix needs to trim out the irregularities of a service that could potentially shake the mobile gaming and, perhaps, the console gaming industry.

A return on investment over the years is something that Netflix is eyeing, and while the numbers may not help them currently, they are hopeful things will take a turn for the better in the future. However, time moves fast, and their investment is no child’s play. Failure to see anything close to their target may result in significant losses and the entire division being shut down. While being stagnant doesn’t help anyone, creating substantial changes also requires stability. If Netflix doesn’t figure out their problems, this could yet again be another example of how timing is crucial for every service in the modern world.

 

Author: Malik Araf