Netflix’s mobile gaming platform has been engaging less than 1 percent of Netflix subscribers since its launch last November, according to new data from app analytics company Apptopia (via ‘CNBC.).
Included with every Netflix subscription, Netflix Games allows users to play a small number of games on their mobile devices. The games are released as individual apps on the iOS App Store, while the full catalog of games, which currently numbers 24 titles, is housed in the Netflix app.
Similar to the way Apple Arcade operates, there are no ads, additional payments or in-app purchases included in the games, with the idea being to keep customers engaged with the streaming service while they wait. new installments of TV shows and hosted series. from the platform.
For example, Netflix has tied in several available games with popular shows, such as “Stranger Things: 1984”, “Stranger Things 3: The Game”, and an upcoming chess game based on The Queen’s Gambit. Netflix did not say how much it is investing in games, but the company acquired Finnish developer Next Games for about $72 million, and Netflix says the catalog will grow to 50 games by the end of the year.
Despite Netflix’s investment, however, the latest engagement figures are unlikely to be received favorably by Netflix, as less than 1% of Netflix’s 221 million subscribers play games according to Apptopia . In total, the game was reported to have been downloaded 23.3 million times and an average of 1.7 million users per day, which is far from the main mobile games.
Last year, the COO of Netflix Greg Peters said that the company was “many months and really, frankly, years” to learn how games can keep customers on the service. “We’re going to be experimental and try a lot of things, but I would say that our eyes on the long-term reward really focus more on our ability to create properties that are connected to the universes, the characters, the stories that we are building.”
The intensification of the competition for the user’s attention in recent months has probably since increased the importance of games for the general strategy of Netflix. According to data shared from the company’s Q2 2022 earnings call, despite revenue rising 9 percent year over year, Netflix lost 1.3 million subscribers in the US and Canada during the quarter.
Netflix has also been raising its prices, which has resulted in some customers abandoning the service. In January, the company increased prices for all its plans. The basic standard definition plan went from $8.99 to $9.99, the Standard HD plan went from $13.99 to $15.49, and the 4K plan went from $17.99 to $19.99.
Netflix blames its subscriber losses on connected TV adoption, bill sharing, and competition, and to further improve revenue growth, the company says it is focusing on monetization to evolve. A lower-priced ad-supported tier is in the works and is expected to launch in early 2023, and the lower-priced plan could attract some of the subscribers who abandoned Netflix due to rising costs.
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