Netflix Inc. (NASDAQ: NFLX), one of the world’s largest streaming content providers, plans to include video games in its catalog. The company is recruiting a group of specialists who may be involved in the development of the “gaming” direction.
Video game market history at Netflix isn’t pleasant: The company tried to succeed in this area in 2010 but was harshly rebuffed by consumers and eventually abandoned the initiative. Thus, the streaming service waited several years to announce its entry into the video game market. However, as it turns out, Netflix Inc. (NFLX) is adding video games to its catalog next year.
Mike Verdu, who ran Zynga and Electronic Arts’ video game divisions as well as Facebook’s division, which develops the virtual reality glasses, Oculus Rift, has been appointed head of the division. Additionally, Netflix is recruiting other professionals who might help the gaming business flourish.
Initial data indicates that Netflix Inc. (NFLX) does not intend to charge additional charges for access to games. However, the presence of such a directory in itself can also be a driving force in attracting and retaining customers.
There are already millions of Netflix Inc. (NFLX) users around the world who enjoy original and varied films and TV shows. Probably, the provider plans to follow this strategy with games as well. Games, like video content, offer excellent advertising opportunities.
The company has over 200 million subscribers globally, so it will almost certainly become a major player in online gaming soon after it launches, drawing attention from advertisers. Plus, Netflix is able to reach a very large audience around the world, which can attract video game publishers.
Netflix Inc. (NASDAQ: NFLX) stock closed Friday’s session at $530.31. The stock volume remained 3.4 million shares, which was higher than the average daily volume of 3.37 million shares within the past 50 days. The company has a current market of $240.74 billion and its outstanding shares stood at 443.22 million.