For two years, Netflix subscribers have been able to download tons of mobile games, all included for free with their subscription. Netflix has developed over 75 mobile games, featuring popular IPs like Grand Theft Auto, Love Is Blind, Monument Valley, Oxenfree, and many more.
Now, Netflix is likely exploring ways to generate revenue from its gaming business, a recent report suggests.
according to The Wall Street Journal, the company has had discussions about how to monetize its games for months, including in-app purchases, putting a price tag on more premium titles and placing ads on games that ad-tier subscribers can access. These methods are common (and effective) in the world of mobile gaming, where consumers are expected to spend $111.4 billion On mobile games in 2024.
Netflix declined to comment to TechCrunch.
Discussion doesn’t always lead to action, so a company may decide to move away from monetizing games. Netflix appeared to nix the idea of in-game ads and payments during its April 2023 earnings call.
“We want to have a different gaming experience and part of that is giving game creators the ability to think about creating games in terms of just player enjoyment and not having to worry about other forms of monetization, whether that’s ads or in-game ‘payment,'” the co-CEO said. For Netflix’s Greg Peters to investors.
Plans change, though. After all, Netflix was initially against launching an ad-supported tier and cracking down on password sharing, but reversed its decision after losing thousands of subscribers in 2022, marking its first subscriber loss in more than a decade.
Additionally, a move into gaming monetization would make sense for the streamer given its growth stagnated at the start of 2023, laying off 3% of its workforce as a result. Netflix also recently raised its prices again, with the Premium plan now costing $22.99 per month for new customers in the US.
Also, Netflix posted a job listing in 2022 for a game director to work on a AAA PC game, which can be a fairly expensive project in the video game industry. UK Competition and Markets Authority (CMA) mentioned AAA games can have development budgets of $200 million or more. Netflix has reportedly discussed charging money for its future high-budget games, the Wall Street Journal wrote, adding that analysts have determined that Netflix has spent nearly $1 billion on acquiring game studios and investing extensively in its gaming business.