andappleArcades work similarly, with no ads, perks or in-app purchases in the game, and the aim is to keep customers waiting for the platform to hosttelevisionContinue to participate in the streaming service when new episodes of shows and series come.
For example, Netflix already bundles some of the available games with popular TV shows like Stranger Things and Revenant. Netflix didn’t say how much it invested in games, but the company bought Finnish developer Next Games for about $72 million, and Netflix said its catalog will grow to 50 titles by the end of the year.
However, despite Netflix’s investment, the latest engagement figures show that users aren’t too impressed with Netflix’s efforts, as less than 1% of Netflix’s 221 million subscribers play these games, according to Apptopia. In total, the games are reported to have been downloaded 23.3 million times, with an average of 1.7 million daily users, a far cry from the leaders in the mobile gaming industry.
Last year, Netflix Chief Operating Officer Greg Peters said the company has spent “many months, really, quite frankly, many years” learning how games can keep customers on the service. “We’re going to be experimenting and trying a bunch of stuff, but I would say that our focus on the long-term awards is really more around our ability to create properties that are relevant to the universe, the characters, the stories we’re building. “
Competition for user attention has intensified in recent months, likely increasing the importance of gaming to Netflix’s overall strategy since then. Netflix lost 1.3 million subscribers in the U.S. and Canada during the quarter despite a 9% year-over-year increase in revenue, according to data shared on the company’s second-quarter 2022 earnings call.
Netflix has also been raising prices, which has led some customers to abandon the service. In January, the company raised prices on all of its plans. The basic SD plan went from $8.99 to $9.99, and the Standard HD plan went from $13.99 to $15.49,ChekaThe plan goes from $17.99 to $19.99.
Netflix has blamed connected TV adoption, account sharing and competition for its subscriber loss, and to continue boosting revenue growth, the company said it is focusing on evolving monetization. A low-priced, ad-supported plan is in the works and will launch in early 2023, which could lure some subscribers who have ditched Netflix because of rising costs.