Has Netflix Bitten off More Than It Can Chew with its Gaming Offering?

by time news

Netflix has been at the top of the streaming industry for the last decade, but it recently witnessed a major drop off in subscribers. According to TheStreet, 200,000 people cancelled their plans in the first quarter of 2022, and many more could follow. This coincided with the release of Netflix Games, a brand-new addition to the service that allows users to play simple, arcade-style offerings.

This expansion into gaming was designed as a way for Netflix to offer an even more comprehensive service than its rivals. However, the release of the service has failed to take the world by storm. Has the media giant now bitten off more than it can chew?

Should Netflix Stick to What it Knows Best?

In the time that Netflix has grown to become a global behemoth of television and film, other library-based platforms have risen around it. Now, the entertainment industry is awash with pages that offer users dozens of options in whatever they’re searching for. Netflix does this for series and movies, while PlayStation Now does it for console games like God of War. Mobile services like Apple Arcade are putting players in touch with premium arcade titles like What the Golf?, and online casinos are offering users a vast choice when it comes to slots. The Betway slot library, for instance, has more than 450 titles, including new options like Kings of Crystals or Jurassic Park Gold.

The common theme with all these services is that they have become masters at what they specialise in. Users know that they can get world-class options at each of them, and they also have a good idea about what they will see on the pages before they open them. Consumers don’t log on to the PlayStation store to watch a film, just as they don’t turn to Netflix to play a game. Until now, that is.

The problem for Netflix is that it now wants to offer a service that many established giants are already delivering. If you look at the type of games available on the streaming service so far, you’ll find similar or better options elsewhere. For example, Netflix has its own gambling-themed titles like Card Blast and Dominoes Café. But why would users opt to indulge in these at Netflix when they can see a much greater number of options at online casinos? The same can be said for arcade games like Shooting Hoops and Bowling Ballers. Right now, Apple Arcade is providing a much wider array of selections.

Netflix Now Facing Stiff Competition from Rival Services

Netflix is breaking into gaming because it views gaming services as its main rivals. CEO Reed Hastings famously said that Fortnite is a much bigger competitor to the service than HBO in 2019. He was right to an extent, as gaming was and still is the entertainment option of choice for most people around the world. Indeed, it earned revenue of more than $134 billion in the year Hasting’s comment was made. However, the problem is that HBO, Amazon, and others are now making quality television and films that can turn viewers away from Netflix.

This means that Netflix’s focus still needs to be on its series and films, with the games as a secondary pursuit. The reason it is shedding viewers at such an astonishing rate is because people have realised that they can access top-quality content elsewhere. For most households, it is not feasible to sign up to every streaming service there is, so people need to make a choice. Netflix should aim to win viewers back through its traditional content, and then offer gaming as an added incentive.

Could Be the Right Idea in the Long Run

There’s no doubt that Netflix Games could be a great idea for the company in the grand scheme of things. There is a sense that the world is moving to entertainment platforms that offer everything users need in one place. This could be further enhanced when people start entering virtual reality metaverses. These early forays into gaming could put Netflix ahead of its rivals once again. It may be well established in a few years, while HBO and others scramble to catch up.

Netflix has expanded successfully in other ways during its existence. When it started releasing high-budget movies that went against the classic cinematic release model, it shocked the world. Now, this is becoming the norm, with Deadline reporting that Mark Wahlberg’s new film will skip the theatres before landing on Paramount+ in June. Netflix has also managed to break into animation and unscripted TV as ways to grow its service.

Right now, it seems like Netflix may have bitten off more than it can chew with its games as it could be argued that it should be focusing on beating HBO, Amazon, and Disney for content. However, in the long run, adding gaming to the service could end up being a masterstroke and Netflix may have an early edge on its rivals.

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