Netflix Inc (NASDAQ: NFLX) has dominated the online streaming space for years. And now, it wants to diversify into interactive entertainment.
According to Bloomberg, the media and streaming giant is set to introduce video games on its platform. The new standalone genre is expected as soon as next year, but what’s more exciting is that subscribers won’t have to pay extra for video games.
Rich Greenfield’s remarks on CNBC’s “Squawk Box”
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Commenting on the news, LightShed’s Rich Greenfield said Netflix’s push into gaming is a natural expansion. On CNBC’s “Squawk Box”, he said:
“The media space is now a war for time and attention. The COVID-19 pandemic sure fuelled a huge surge in video streaming. But the growth in time spent on gaming has dwarfed the time spent on streaming. And so, I think it’s a very natural extension.”
Subscribers, however, shouldn’t expect Netflix to create blockbuster titles like Grand Theft Auto anytime soon, clarified Richfield. He expects the media giant to start small, perhaps with mobile games, and expand over time.
“Netflix already has 200 million people on its platform from around the world. Why wouldn’t it want to expand into gaming that is rising rapidly in terms of overall time spent,” added Richfield.
Netflix hired an industry veteran as the VP of game development
As part of its push into interactive entertainment, Netflix hired Mike Verdu as the vice president of game development. Verdu is an industry veteran who has previously served at Facebook and Electronic Arts.
Netflix is scheduled to report its quarterly results next week. Here’s an analysis of whether you should buy the stock ahead of the earnings. Shares of the $247 billion company were 1% up in premarket trading on Thursday but lost the intraday gain on market open. The stock is up only 4% in 2021 to date.
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