Netflix has always talked about expanding the field that is its core strength – on-demand TV and movies. But of late there were reports of the company trying something in other media like video games as well. Now, these rumours about Netflix foraying into gaming appear to be getting confirmed. This is because there are reports that the streaming company is looking for executives to lead the ‘expansion.’ Netflix is silently in talks with senior executives of the gaming industry for joining the company. Reports suggest that the company has told the veterans of the industry about its plan of boosting investment in the space. However, there is no report about what exactly the expansion plan would be. But some people are hinting towards the possibility of an Apple Arcade-like game subscription service.
The streaming company launched interactive TV series in 2017 that allowed viewers to affect plot lines and decisions of the character by clicking on their screen. Later it licensed out the popular series Stranger Things to video game developers. But recent development suggests that Netflix is planning for something bigger. According to a spokesperson of the company, this is an expansion of Netflix into what it calls ‘interactive entertainment.’ Video games are considered to be the extended part of interactive entertainment and Netflix can enter the space without walking away from what it does best. Also, the timing to enter the space is right as video game sales are booming. While the coronavirus pandemic-induced lockdown is partially responsible for it, the other reason is that Generation Z consumers like it the most.
Also, the streaming company seems to have positioned itself in a better position to invest. The company said that it no longer needs to borrow money for investment and expects to have a positive cash flow in 2022. Also, Netflix has over 200 million global subscribers and the company is willing to capitalize on this strength. Netflix COO and chief product officer Gregory Peters said that there is no doubt that games will become one of the prominent ways of entertainment. However, Netflix is going to have tough competition as there are already strong players in the space. Netflix will just like a newcomer in the industry which is dominated by companies like Sony, Microsoft, and Netflix.