Two years ago, Netflix introduced some mobile games on its platform, which were included in its subscription plan for users. Since then he has published more than 75 mobile gamesunderneath Grand Theft Auto, Love Is Blind, Monument Valley or Oxenfreeamong many others.
Now, Netflix is looking for ways to generate more revenue from its gaming business, according to a recent company report published by The Wall Street Journal. The company has been discussing how to generate revenue from its games for some time. Options they are exploring include in-app purchases, pricing premium games, or placing advertisements in games depending on the user's subscription plan. These are the methods commonly used in the world of mobile gaming to achieve profitability.
Facts about mobile games
In 2022, smartphone users worldwide will spend about $110 billion on mobile gaming apps, reports Statista. In-game ads are expected to increase by 2023, and although the expected numbers were not reached, eMarketer said that mobile advertising revenue in games in the first half of 2023 only accounted for 3.9% of total mobile advertising spending made up. , slightly higher than last year's 3.7%.
From Techcrunch they inform that Netflix had already considered some of these measures in 2023, but decided to abandon the idea of advertising and payments within the game. Nevertheless, the company emphasized its interest in this business niche: “Games are a huge entertainment option. We're talking about $140 billion in consumer spending on gaming outside of China and Russia. And from a strategic perspective, we believe we can build games into a strong content category by leveraging our current core of films and series and connecting members, particularly those who are fans of specific IPs, with games they will love» says the statement for the third quarter of 2023 Netflix co-CEO Greg Peters.
This decision change could be motivated by the decline in subscriptions and their growth. Additionally, Netflix has already increased the prices of its Premium plan, which currently costs $22.99 per month for new US customers. Therefore, the company needs to look for new measures to increase its revenue in 2024.