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HomeUncategorizedCan video games be the salvation of streaming platforms? • ENTER.CO

Can video games be the salvation of streaming platforms? • ENTER.CO

Netflix started 2022 with an unprecedented loss of 200,000 subscribers and since then, the company has had to give serious discussions in order to maintain its validity in the streaming industry, among which is the strengthening of its video game offer on the platform .

This is not the only idea that has been put on the table in order to diversify the company’s portfolio and attract a new public. Other proposals are related to the possibility of broadcasting live content such as concerts, to offering a cheaper subscription plan that would allow future users to access the platform’s catalog in exchange for seeing some advertisements.

These strategies are intended to deal with the losses that Netflix expects to continue to have in the year and in the face of a drop in market value that exceeded USD$50 billion: a situation that has forced the company not only to take some uncomfortable measures with the in order to maintain their own financial health (such as cutting costs through hundreds of layoffs in the US, Canada and Europe); instead, you have to open the discussion around how to strengthen your current product to maintain its position in the market.

Why are there streaming platforms that want to offer video games?

On Netflix they have already been seduced by video games. The service not only premiered Netflix Games in November 2021, but recently made a decision in favor of the segment that was questioned by some. The company decided to cut the budget for its animation area (which will cost the lives of several 2D movies and series) and, instead, increase the one dedicated to video games.

The reason for this bet lies in the current success of the gaming industry, which has already managed to capture almost 3,000 million gamers around the world and has reached an estimated market share of US$200 billion.

If to this panorama we add the fact that the constant increase in the number of consumers responds to the fact that accessibility to any virtual game no longer depends exclusively on a console, one of the conclusions that can be reached is that, technically , anyone who has a cell phone has, at the same time, their own hardware that can allow them to consume video games.

Therefore, Netflix is ​​not the only company that finds the option of offering online games attractive. The Chinese social network, TikTok, has also expressed its interest in being a platform from which gamers can also broadcast their games, but in addition to that, where users can find a whole range of virtual mini-games. The question that many are asking is: will it work to further strengthen the content that is already established by other sectors?

It may interest you: The consumption of mobile games increased by 63% in the last year

So far, none of the aforementioned platforms has fully focused on promoting their video game-related products, despite the fact that they already have some content of this type. For this reason, it is hasty to answer whether the acceptance of a new segment by the public of both platforms will be enough for it to be truly competitive in the market.

And although it may be true that the profiles of a series consumer may not be the same as that of a video game consumer (as well as the motivations of someone who decides to play and someone who decides to watch a movie, they could be radically different), It is true that both Netflix and TikTok have only one goal: to expand their user base.

Therefore, if the goal is closer to attracting new customers than retaining existing ones (although hopefully they are not neglected), then the bet could yield interesting results. Whether these are positive or negative will depend only on the quality of their games to compete against existing competitor products.

The truth is that, in the case of Netflix, the company must take special care to maintain the quality of the curation of its traditional offer, since it currently cannot afford to lose more subscribers and less when it has already predicted that for the second quarter By 2022, it could lose up to two million users.

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