Netflix will enter the mobile gaming market in 2022 with a free service, integrated into its video streaming platform. It is concentrating on exclusive games based on its original video titles, while adding third-party games will ensure early traction following launch. Netflix must specifically focus on acquiring game developers to add experience and competitive edge to its gaming division.

Netflix is following a traditional film-makers’ approach to gaming

Following in the footsteps of Disney and Warner Bros, Netflix is building exclusive games based on its movies’ intellectual property (IP). Netflix is building an in-house gaming division as well as licensing IP to game developers. It is known to be working with developers like Bonus XP and Ludic Games, which have built games based on Netflix’s IP, such as Stranger Things and Kate. In September 2021, it acquired game developer Night School Studio to add established mobile titles such as Oxenfree and Afterparty to its portfolio of exclusives.

Netflix gaming will resemble Apple Arcade

Apple Arcade is a subscription-based, ads- and microtransactions-free service that features downloadable, exclusive game titles for Apple devices. Similarly, Netflix’s games will be available to download to a device, and the service will be integrated into its video streaming platform, with no ads or additional charges. While this is a consumer-friendly approach, Netflix should note that Apple Arcade has been struggling to add new users over the past two years.

A free service including exclusive titles is not enough to succeed in the competitive mobile gaming industry. The quality of the games and Netflix’s ability to attract users will ultimately determine its success in the long run. Therefore, Netflix must consider including popular third-party titles like PUBG Mobile and Among Us to increase the appeal of the service and attract users post-launch. It could also use its associations with gaming giants such as Sony and Riot Games to collaborate on games for its new service.

Gaming popularity varies

The popularity of mobile gaming genres varies from one country to another. According to Facebook’s Genre and Great Games report, published in 2020, Japanese gamers particularly enjoy role-playing and augmented reality (AR) games, while those in the US and UK prefer casino and card games. Netflix should follow country-specific trends to ensure the success of its gaming service.

Netflix does not operate in China, a market that accounted for about 35% of global mobile gaming revenues in 2020. Therefore, the company must focus on other fast-growing markets like India, Brazil, Canada, Germany, France, Italy, and Spain. Presumably, aware of the opportunities in these countries, Netflix has begun testing the gaming service in select markets, including Italy and Spain.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

View profiles in store

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Submit

UK USA Afghanistan Åland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos Islands Colombia Comoros Congo Democratic Republic of the Congo Cook Islands Costa Rica Côte d"Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati North Korea South Korea Kuwait Kyrgyzstan Lao Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macedonia, The Former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palau Palestinian Territory Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Réunion Romania Russian Federation Rwanda Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Pierre and Miquelon Saint Vincent and The Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and The South Sandwich Islands Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates US Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela Vietnam British Virgin Islands US Virgin Islands Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Kosovo

Industry * Academia & Education Aerospace, Defense & Security Agriculture Asset Management Automotive Banking & Payments Chemicals Construction Consumer Foodservice Government, trade bodies and NGOs Health & Fitness Hospitals & Healthcare HR, Staffing & Recruitment Insurance Investment Banking Legal Services Management Consulting Marketing & Advertising Media & Publishing Medical Devices Mining Oil & Gas Packaging Pharmaceuticals Power & Utilities Private Equity Real Estate Retail Sport Technology Telecom Transportation & Logistics Travel, Tourism & Hospitality Venture Capital

Tick here to opt out of curated industry news, reports, and event updates from Verdict.

Submit and download

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Experience in the market is needed

Netflix is a new entrant in the evolving and heavily contested mobile gaming industry. It lacks experience in gaming and must invest to overcome competitive risks and succeed in the industry. One of the quickest ways to succeed in any theme is to acquire a company that is already excelling.

Netflix should acquire game developers to strengthen its gaming division. It should purchase and develop video content that can be converted into attractive gaming content. Appropriate expansion of the games portfolio will help improve the gaming service’s appeal and ensure customer retention in the long run.