Streaming giant Netflix Inc. NFLX has confirmed its much-anticipated move into video games, even as it reported slowing subscriber growth in the second quarter.
What Happened: Netflix said Tuesday in its quarterly letter to shareholders that it sees gaming as another "new content category" for the company, similar to its expansion into original films, animation and unscripted TV.
The company added that it will offer video games in its existing subscription plans at no additional cost and will initially focus on games for mobile devices.
Why It Matters: Netflix’s confirmation of its expansion into video games comes along with the release of its second-quarter results on Tuesday.
Netflix said it added 1.54 million paid subscribers in the quarter, compared to the 10.1 million paid subscribers it added in the year-ago quarter. The latest figure indicates the company’s slowing subscriber growth amid the lifting of pandemic restrictions that had forced people to stay at home earlier.
The streaming giant plans to increase its customer base and revenue by expanding into the video game market. With its own gaming platform, the company could create games around its owned properties and original series.
It was confirmed last week that the company has hired Mike Verdu, a former Electronic Arts Inc. EA and Facebook Inc. FB gaming executive, to lead its expansion into video games.
Netflix has previously partnered with an outside developer to launch a game themed on its “Stranger Things” franchise.
Price Action: Netflix shares closed 0.2% lower in Tuesday’s trading at $531.05.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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