Netflix to add mobile games as streaming slows
Netflix is diving into video games, as its movie and TV streaming service is projected to slow, thanks to growing competition and the easing of stay-at-home restrictions.
In a quarterly letter to its shareholders, Netflix said, "We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV.”
Netflix is weathering a sharp slowdown in new customers after a boom in 2020 fueled by stay-at-home orders amid the global health crisis.
In the U.S. and Canada, Netflix reported losing over 400,000 subscribers in the second quarter, a rare drop for the company.
They’ve seen new competitors emerge in the streaming arena, with companies like Walt Disney and Paramount launching their own sites.
Meanwhile, summer blockbusters have started to return to movie theaters.
Netflix said it was in the early stages of expanding its video game content, starting with mobile games, at no extra charge for subscribers.
The effort will start “relatively small” with games tied to Netflix hits, according to company executive Greg Peters.
They’ve already dabbled in games linked to shows like “Stranger Things” and “The Dark Crystal: Age of Resistance.”
Netflix projects it will add 3.5 million customers from July through September, falling short of Wall Street expectations.
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