The origin of Netflix is truly fascinating and motivating. The multibillion-dollar company started from the fathom. It started as a DVD rental service and was successful at doing so. It stills runs as a DVD rental – those little red envelopes can still arrive at your door! However, Netflix’s true success lies in moving with the trends. It anticipated the shift to streaming being the preferred medium of viewing and changed its service accordingly. The price and being able to share an account are such massive reasons for the success of Netflix. It’s affordable, only about two coffees a month. There are two purviews on which the revenue percentage of Netflix is based. First is the revenue that Netflix generates and second is the cost it saves in the long run. Let’s say Netflix creates original content.
This is viewed by its existing subscribers who in turn will talk about it and enhance word of mouth publicity which will eventually help in bringing in new subscriptions thereby bringing in revenue. Netflix is now, no longer paying Disney for their content and so they are saving a fortune on expensive shows that they can either invest or keep as debt not accrued. Netflix is coming with a big change on its platform. For a long time, Netflix is primarily reckoned for streaming movies and web series. Then this streaming platform entered into production house. Now Netflix is taking another leap of faith. Netflix is working on introducing games on its streaming platform. The company will now provide gaming options to its users via the internet.
Netflix has been in talks with game developer companies. These companies are electronic arts and Facebook Inc. Netflix has collaborated with these companies and work in the process of providing games to its subscribers. The streaming giant was in the process to introduce games on its platform for a long time. The first revelation of the gaming availability on its platform came last year. It has also been known that Mike Verdu will handle the department of gaming on Netflix. He has been appointed as vice president of the game development department. Mike Verdu will directly report to Greg Peters. Greg Peters is the official chief executive officer of Netflix and all the information about the introduction of gaming availability on Netflix was revealed by him in an interview. He also told that soon the gaming option will available on Netflix.
Mike Verdu was previously working as vice president of Facebook in its gaming department. He has been primarily reckoned for his collab with developers of the gaming department in Facebook. They have introduced games for Facebook’s virtual reality headsets. Facebook had received tremendous applaud for its development of headset virtual reality owing to its endeavored developers. Now mike has joined Netflix as vice president of the gaming department, so there will be no denying the fact that Netflix is planning something big for its users. We hope that the availability of the gaming section will somehow revolutionize Netflix in the long run. The company also revealed that video games will start functioning on Netflix from the first quarter of the year 2022. The news about the initiation of the games on Netflix was revealed by a person closely working with the developers.
The game will be available along with the other contents of Netflix on its app. Just like the way, Netflix has introduced stand-ups as well as documentaries. Another source from the company also told that Netflix is in no mood to charge any extra amount for the games on its platform. The revelation of the no-charge came under the condition that the identity of the person will be kept secret as their information is vital and top-secret. After the news of the availability of games on Netflix, its shares topple to as much as 2.8% to $563.45 on Thursday. It has also been observed that the stock of Netflix gained up to 1.3% this year till Wednesday’s close. Netflix is working day and night to grow rapidly in the fast-growing market. The company is devoted to growing much faster especially in the US because it is one of the most saturated markets in the world.
The company has primarily focused on building its kid’s programming as well as inaugurating online shops to sell its merchandise. Netflix still has tremendous brand awareness for the time being. They also have the tech and infrastructure to deliver their product better than most. They’ve kept the price of their service shockingly low for what it offers (even with the recent price increases) and they seem to continue to pick up subscribers at a pretty fast rate. It still has a vast number of paying subscribers, it’s a little bit profitable, it has amazing market penetration, it’s on every device known to man, and has its own, extensive CDN in every major ISP to reduce costs. Anyone who says Netflix is in danger is not focusing on what’s important. The company has also been in talks with prominent Hollywood director, Steven Spielberg to make more mind-boggling movies for its platform.
Statistical data shows that Netflix is much ahead of its rivals such as HBO, Amazon prime, and Disney+. But the streaming giant has added fewer subscribers than earlier in recent months. This shows that the popularity of the streaming giant is degrading slowly and the company will have to work towards gaining its prominent position again. Now the company is making some strong decisions that will help it to sustain a top position for a long time. Netflix has got a lot of advantages naturally in the business of streaming. Frist big advantage is cost reduction in the longer run. Since Netflix does not own a lot of its content there are licensing fees that need to be paid periodically. With original content, you don’t have that hassle. Secondly, the lack of advertisements. This will change in the next few years; the lack of ads makes it a front runner when compared to cable television.
The younger demographic in particular needs for more instant gratification and ads turn many of them away. The move to introduce games on Netflix is undoubtedly the bravest and boldest step. The vice president of the gaming department of Netflix, Mr. Verdu is one of the prominent faces in the gaming sector. His prior works in EA are the Sims, Plants vs. Zombies, and Star Wars franchises. Mike Verdu has earlier served as the chief executive officer of Zynga Inc. He has served as CFO between the year 2009 to 2012. His entry into Netflix as a vice president of the gaming department will bring the next phase of revolution in the streaming world. A source familiar with the development of the gaming platform on Netflix has told that the games on Netflix will roll out soon in the coming months. Netflix has initiated the process of advertising game-related pieces of stuff on its official website.
“This feels like a significant event with broad ramifications across the video-games landscape,” Citi analyst Jason Bazinet wrote in a note Thursday. Furthermore, he also said that the entry of Netflix into the gaming industry will create an environment of competition among other game developers. It also holds a risk factor for other gaming developers who have already been sustaining in the gaming market. The Netflix model is the model for the future and one that everyone from Disney to Apple to Comcast to CBS is emulating. Companies that everyone is desperately trying to copy don’t become irrelevant, and since they were one of the first to start making original content specifically for streaming, they are hugely ahead of everyone. The only real contenders are Amazon and Disney. Netflix is one of the best platforms for new movies as well as web series.
They signed a contract a few years ago with Disney for limited online rights for their movies, which includes Marvel and Star Wars. Although that contract ended last year. Netflix has made a diverse plan to keep sustaining in the coming years without any worry or any contractual dependency. They’ve already started to pivot to protect themselves in the future. They knew that the more successful they became and the more content providers saw that they could offer their products direct that they would begin to lose more and more titles. That’s the primary reason they’ve gone in hard on original content. The stuff they produce and own never goes away, so even if they only get one season out of something, it can be there “forever”.