Netflix is perceived as a media streaming giant for all the right reasons. That’s because you can watch a variety of TV shows, movies, and documentaries based on different genres like action, comedy, romance, drama, mystery, thriller, suspense, etc.
As per howtowatch.co.nz, a leading Kiwi website, Netflix is famous for producing some top-notch movies like The Midnight Sky, Extraction, Dangerous Lies, We Can Be Heroes, etc. for its viewers.
But now, the leading streaming platform has decided to become a part of the multi-billion dollars gaming industry. As you might know, the online gaming industry is expanding at an impressive rate of 9% on an annual basis.
That said, diving into an online gaming industry is not an easy task for even a streaming giant like Netflix too. The main reason behind this logic is intensive competition that can create hurdles for Netflix in the future because the platform has to compete with famous game subscription services including Xbox Game Pass, Humble Choice, Google Play Pass, etc.
Apart from this, the video on demand service has to consider other factors that can hamper its growth in terms of gaming subscription service in the coming years. These factors are:
Gaming is a different niche
Netflix should understand that there is a world of difference between entertainment and gaming niche. Although, the service has successfully grabbed the attention of its current subscribers to a great extent.
However, Netflix may face issues engagement-wise because gamers usually spend more than 1 hour daily on an average. Compared to gamers, streaming fans usually access Netflix for half an hour daily on an average.
Therefore, the service should focus on adding such attractive games in its armory that can engage gamers for a longer time period like Fortnite, Counter Strike, etc.
Apart from this, an ideal online video game should be free from different glitches otherwise they can spoil gamers’ fun a great deal. For example, CyberPunk 2077 had a big hype before launching but the game failed due to various reasons like boring gameplay, unattractive design and graphics, other issues, etc.
Unfortunately, gamers from all around the world remember CyberPunk 2077 as one of the decade’s biggest flop video games.
Competition is intense
Gaming subscription market is not a piece of cake for even Netflix, a media streaming giant. Every new entertainment either experienced or novice will have to face stiff competition from other major players such as Xbox Game Pass, EA Play, PlayStation Now, etc.
As far as Xbox Game Pass is concerned, the gaming subscription service currently enjoys the subscriber base of more than 23 million users. Similarly, other services mentioned above have established their names among gamers.
But sadly, Netflix has to gain the trust of existing and potential gamers from scratch and that is one of the most difficult tasks for the famous streaming platform right now.
Target Audience needs to be identified first
Like other gaming subscription services, Netflix will need to identify its target audience first. Otherwise, the service will not be able to expand itself in the gaming industry in the right direction.
Similarly, Netflix might experience problems in terms of subscribers base because the lack of clear target audience will surely hurt the video on demand platform in the long run.
Developing interactive games is an expensive business
There is no denying that developing online video games is a cost-effective thing. For example, an interactive online video game usually costs around $50 million to $100 million development-wise.
Therefore, Netflix must keep this figure in mind before developing any interactive game on its own. That said, budget is not the issue for a successful video on demand service like Netflix.
However, the service will have to include a dedicated team of professionals including game developers, marketeers and other support staff. This way, Netflix will be in a better position to market its games to the prospective subscribers with the right marketing tactics.
Wrapping Things Up
Netflix is popular among viewers for producing some of the top-notch original shows and movies like Control Z, Stranger Things, Extraction, etc. That said, the streaming giant has decided to become a part of the rapidly growing gaming subscription market.
If you go by our logic, it is a good thing for gamers as they will have the last laugh. They will be playing more games in the near future as the inclusion of Netflix in the gaming subscription market will offer them a huge opportunity to play their favorite online games on their desired devices.
Still, it is a long way to go for Netflix since the service has to make a mark for itself in the gaming industry that is already occupied by big names like Google Play Pass, Xbox Game Pass, Nintendo Switch Online, etc.