Netflix explores including ads in its video games, pondering a change in strategy for a growing market.
Netflix is exploring several strategies to make its investment in video games more profitable, including the introduction of advertisements.
After a series of experiments and in-depth analyses, a change in dynamics seems to be emerging which, according to the Wall Street Journal, could lead to the development of a new business model on which Netflix will rely to consolidate its presence in the video game market.
Despite low user engagement, the company continues to invest significantly to offer a large catalog of titles.
The reason behind this massive commitment to subscriber gaming has always been an enigma, as the feature continues to be enjoyed by a very small percentage of users.
However, according to a report, this lack of performance may be the reason why Netflix is trying to make its business more profitable.
Plan in progress
Over the past two years, Netflix subscribers have been able to access over 75 mobile games for free, some of which have prestigious licenses such as Grand Theft Auto.
According to reports, the company recently looked at several options for monetizing its games and proposed some ideas, including in-app purchasesadvertisements within games or even the marketing of some paid titles.
Interestingly, in last year's April financial results, Netflix had excluded the idea to include ads and monetary transactions in its games.
Greg Peters, co-CEO of Netflix, told investors: “We want to provide a unique gaming experience, allowing creators to focus solely on entertaining players, without having to consider other forms of monetization, such as advertising or in-game payments .”
The end or the beginning?
Netflix seems to have revised its strategies to make its video game sector more profitable, also considering the issue of shared accounts and the possible introduction of advertising subscription levels.
It is speculated that, regarding the monetization of games, the cash charge could apply exclusively for AAA gamesto cover the largest budgets.
The idea of introducing forms of monetization suggests an evolution of the project towards something more complex: the cloud gaming could become more relevant in the future and Netflix seems to want an active role in this context, preventing other companies like Amazon from taking over.
Not long ago, it was found that less than 1% of users with access to the gaming area actually interacted with it.
This suggests an untapped potential behind the current subscription, and if the project gains momentum, Netflix could aspire to become a truly multi-scope entertainment hub.
#Netflix #ways #video #games #profitable
