Sumary of Netflix turning to games as streaming growth slows:
- The streaming television leader offered details of its plans to move into games in its latest update confirming cooling growth even as the Silicon Valley giant spins off hit shows.
- Analysts said the Netflix move is not aimed at disrupting the expanding gaming market but keeping its own viewers interested by offering new kinds of content.
- “Entertainment and tech brands are adding gaming because it is adjacent to their video products, which makes gaming a somewhat natural extension of what they already do,” said eMarketer analyst Ross Benes.
- Loup Ventures manager partner Gene Munster called Netflix’s action a “smart move to retain and inch up paid subscriptions” noting there are some two billion gamers worldwide.
- Wedbush Securities analyst Michael Pachter on Wednesday expected the Netflix move to have “zero” impact on the game world.
- “We also view games as a ‘shiny new object’ that might distract investors from what we perceive to be Netflix’s slowing growth.
- “The marriage of Hollywood video production and games based on that content has faced a troubled history,” said Third Bridge senior analyst Joe McCormack, noting that both Disney and NBCUniversal have shuttered video game units.