Version that will be the next service to offer
SAN RAMON, Calif. (AP) — Netflix has hired veteran video game executive Mike Verdeau, indicating that the streaming service plans to expand into a more fertile field of entertainment.
Verdu’s additional stint as Netflix’s vice president of game development comes at a time when the company is looking to maintain the momentum it gained last year when people turned to streaming for entertainment during the lockdown.
Netflix added 37 million subscribers worldwide in 2020, the biggest annual gain ever in its history. But the scenario has changed dramatically with the development of pandemic management and the return of people to normalcy.
The company stumbled in the first quarter of this year, in which it reported its smallest customer growth in that period in four years and predicted its spring growth would be even lower.
Adding video games will give Netflix another way to grow to its 208 million subscribers at the end of March. This will come as no surprise, given that the firm’s co-CEO Reed Hastings has long said that the company competes with video games and streaming services offered by Amazon, Disney and Apple for viewers’ free time. does.
Netflix hasn’t openly mentioned its foray into the world of video games, but it leaves little doubt when it announced the appointment of Verdu, a resident of Facebook’s Oculus, where he oversaw the virtual reality set developer’s games. He previously worked at video game makers Electronic Arts and Zynga.
Netflix Chief Operating Officer Greg Peters informed investors in April that video games could be another way to attract customers who are already immersed in the service’s series and movies.
“We’re trying to figure out what all these different ways we can increase those connection points, we can deepen that fan base,” he said.
Investors appeared cautious about Netflix’s potential foray into video games.
just have a look
date in doubt
The biggest question is when will Netflix start offering video games and whether it plans to charge a separate fee.
Tuna Amobi, an analyst at CFRA, called the games a logical addition to Netflix’s vast catalog, setting the stage for a price hike.