Why Netflix is Now Making Video Games

Its no secret that Netflix is in a bit of trouble. What could they do solve it? Well the plan apparently is a pivot to enter gaming but will it work? In this episode we check out how this is going for them.


» Twitter | @ColdFusion_TV
» Instagram | coldfusiontv

ColdFusion Merch:

If you enjoy my content, please consider subscribing!
Bitcoin address: 13SjyCXPB9o3iN4LitYQ2wYKeqYTShPub8

--- "New Thinking" written by Dagogo Altraide ---
This book was rated the 9th best technology history book by book authority.
In the book you’ll learn the stories of those who invented the things we use everyday and how it all fits together to form our modern world.

Sources:

//Soundtrack//

Burn Water - Power

Sleepyfish - Forgot it was Monday

Justin Martin - Don-t Go (Dusky Remix)

Bon Iver - Perth (The Polish Ambassador Remix)

Burn Water - Nostalgia Dreams [The Deep Mix]

Producer: Dagogo Altraide

[Thinking_Business]

Netflix is getting into video games for the same reason Apple is launching a car and Amazon is getting into healthcare. These high high tech company have to constantly keep growing in order to justify their insane valuations, and in many cases their core businesses wont offer enough revenue to satisfy investors growth expectations

[punk]

This is the problem with these big companies, their core offering starts to fail and they think moving focus elsewhere is the answer instead of making sure their core offering is decent.

[bob-a-booey-]

Wondering how they can get more engagement while they banned the rating system you gotta love corporations and their infinite wisdom

[mantasvalciukas]

Gaming is extremely competitive and expensive, seems like they're just going to make their situation worse.

[b.rizzle]

I didn't even know they were going into gaming but I'm excited to hear how it's not working out for them

[JackieWelles]

The problem with this that by focusing on totally different thing rather than better content we, subscribers are paying the price with increasing subscription fee.

[KevinSheppard]

Large sunk cost. Anytime a company scrambles into a new area out of desperation and panic from shareholders, it's very likely that effort is going to fail.

[muhammadidrees]

Looks like MBA students will be studying the business case study in 5 years on how Netflix tried to create customer engagement and eventually lost more customers because all popular shows never renewed for their new seasons.

[tubaterry]

As a cloud engineer, this sounds a lot like an early R&D project that got approval to gather public interest data. The very short turnaround speaks to prototype-ish expectations (or completely unreasonable leadership, could be both), and the softest soft launch ever makes it sound very exploratory. Contacting out the work on a new project also is pretty common with modern software practices when fast/low cost startup is the goal, probably especially Netflix

[closeben]

I think it’s so silly that Netflix feels the need to compete with YouTube and TikTok. I think these platforms should be able to exist together in harmony as they each offer very different products. Eg. People can follow along with reactions/reviews and video essays while watching a Netflix series.

People also don’t typically like when YouTubers are given a large budget like with YouTube Red originals, so Netflix buying out certain YouTubers is not the right idea…

[Tommmmmmmmmm]

Netflix in a lot of trouble now especially as more market competition comes in from other distributors. This move into gaming will not do them any favours.

[isssma]

Netflix isn’t even trying at this venture. You’d need actually good games for a successful gaming service.

[renebaebae]

Why dont they just acquire documentary streaming services like nebula and curiositystream and integrate it into the netflix subscription?

[triphung]

I think the bet they're making here is, if people are obsessed with a TV series and are looking for the same experience in games then they can facilitate this by building a gaming ecosystem intertwined to its TV series ecosystem. For this to succeed, a large enough portion of the Tv series fans have to enjoy and engage mobile games as well. However, there are inherent behavioural differences between watching TV series (very passive) and playing video games (more active); and it might just be that the majority of users on Netflix are passive content consumers that would never engage in a more active form of entertainment, given how strongly they've associated the Netflix brand with passive content consumption.

[adilsongoliveira]

I'm far from being a business wizard but it seems logical to me that Netflix should compete with their direct competition in the area they already do business on: video. What about becoming an alternative hub for user's videos like Youtube or TikTok? They already have the technology and the could use that as the platform to launch the ad-paid plans that have been rumored about lately.

[israelpacheco]

I didn’t know there was Netflix Games.

[JoeMamaisgae]

I dont think it will ever work. There are many orher more established gaming platforms out there

[greevar]

The reason Netflix is struggling is because they keep losing content, their own content, when it's good, is constantly neglected, and they keep raising the price without adding commensurate value to justify it. Getting into games demonstrates that they are not recognizing what they're doing wrong and simply trying to find a new source of revenue instead of fixing their faults. People are getting sick of having the price increased while more and more good content disappears or takes far too long to update. People are used to getting the next season of a series once every year, but many of them are taking 2 to 3 years to release, even before COVID.

[SylentLight]

This is HILARIOUS and weird idea that is a waste of time. Yall dont realize how many huge companys thought itd be easy to capitalize on the gaming industry and failed hard

[BlindMango]

I remember over a decade they tried to split their company and subscriptions into two, one for movies and one for gaming - and their stock took a big hit at the time. They reversed that decision lol