Netflix could soon venture into the video gaming business

Netflix could soon venture into the video gaming business
3 weeks ago
2 mins read

Streaming giant Netflix (NASDAQ: NFLX) is reportedly planning to diversify its core business into video games amid rising competition. 

The company is searching for an executive to spearhead the gaming segment that will feature a bundle of games similar to Apple’s (NASDAQ: AAPL) online subscription model, a source close to the matter told The Information. 

Although details about the gaming venture are still scanty, the company does not plan to feature any ads, just like the streaming service. 

The source indicates that Netflix has already approached various gaming industry veteran executives regarding the role with no official job listing. 

Games competing with streaming companies

In the past, Netflix CEO Reed Hastings has acknowledged that games have emerged as big competitors’ for users while singling out Fortnite. He claimed that the battle royale shooter is a major competitor than other streaming platforms. 

“Our focus is not on Disney+, Amazon, or others, but on how we can improve our experience for others. We compete with (and lose to) Fortnite more than HBO. When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time,” said Reed. 

The report comes after Netflix and other streaming companies registered a surge in users inspired by the coronavirus pandemic lockdowns. Furthermore, the gaming industry has also recorded an influx of users during the health crisis. 

In recent years, the Netflix streaming business has focused on producing in-house content to minimize paying licensing fees. However, it is not clear if the firm will take the same approach for the gaming venture. 

Netflix has shown increased interest in interactive content, offering users a chance to engage more with shows like ‘Bandersnatch’ and ‘You v. Wild’, or games based on ‘Stranger Things’, ‘La Casa de Papel’, and ‘To All the Boys’.

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Oliver Scott

Oliver is a revolutionist in the sense that he embraces change as it comes. He is passionate about blockchain, digital assets, the Internet of Things, Artificial Intelligence, and all evolving technologies. At Finbold.com Oliver covers data-driven stories and researches that reveal meaningful insights for the reader.