Netflix has set its sights on video games for its next chapter as streaming growth slows.
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As Netflix hunts to acquire new subscribers and struggles to keep its current ones with content, it has turned its attention to a new area: video games.
As competitors like HBO Max and Disney+ have launched and redefined themselves in recent years, limiting the number of offerings available on Netflix as each network creates its own central content hub, the streaming service has been forced to consider its next chapter, this time investing heavily in the world of interactive entertainment.
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In late 2021, Netflix began working on its own mobile app games. The company hired dozens of new employees and set up a dedicated studio in Helsinki, Finland, to create new streaming game titles, Insider reports.
On Wednesday, Netflix released its latest title, a graphic adventure game developed by Night School Studio, titled “OXENFREE II: Lost Signals.” The game, based on the successful supernatural point-and-click thriller, is available on Netflix’s mobile app and on Steam, PlayStation , and Nintendo Switch.
The shift to video games comes as Netflix's growth has slowed dramatically — according to records kept by Stock Analysis, the company's annual growth rate had never been below 12% until last year. In 2022, despite revenue reaching a record $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.
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It remains unclear whether Netflix's latest venture will succeed, especially with other companies like Google shutting down its own game streaming service after less than three years - however, the company has pioneered before: in 2007, Netflix spearheaded the entire entertainment industry's transition to streaming.
So far, Netflix's slow and steady pace, especially compared to its competitors, seems to be working to its advantage for creators, The Ringer reported.
Information source: businessinsider.com
