Netflix Might be Heading in a New Direction

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The year 2022 has not been abysmal for Netflix, especially in earnings, stocks and other sides of the business. The company claimed that the first subscriber loss since 2011 was reported in April. This year alone, the company’s stock has dropped more than 60%.

But the streaming juggernaut’s current problems could not represent the beginning of a downward trend or the end of its days. As opposed to that, it’s evidence that Netflix is evolving into a more conventional media company.

The Wall Street abbreviation “FAANG” stood for Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix, and Google. For example, Netflix (NFLX) was first valued as a Big Tech company and included in this group (GOOG). When Wall Street first valued the company, it was at around $300 billion, which put it on the level with many Big Tech businesses but was ultimately too high for Netflix’s business model to sustain.

Netflix, though, has never truly been a tech firm.

Yes, it depended on subscriber growth like many tech businesses do, but its subscriber growth was based on offering movies and TV episodes that viewers wanted to watch and would pay for. Compared to a Silicon Valley tech corporation, that is more like a Hollywood film studio.

Compared to Disney, Comcast, Paramount, or CNN parent company Warner Bros. Discovery, Netflix had a much more tech-focused appearance. However, as those traditional media firms begin to resemble Netflix a lot more, it is also starting to imitate its competitors’ strategies. For example, it will soon begin showing adverts and has begun releasing some series over a period rather than all at once.

Read Also: Netflix designs way to increase cost for shared accounts 

According to Netflix, a crackdown on password sharing and a lower-cost ad tier could happen in 2019. It has a partnership with Microsoft (MSFT) for its ad business.

Netflix is changing its strategy

Netflix is stepping up its push into video games and intends to increase its selection by the end of the year, but as of right now, only a small portion of the streaming giant’s members are playing.

The games have been available since last November as a method for the corporation to keep customers interested in between episodes of shows. Subscribers are the only ones who can access the games, which must be downloaded as separate apps.

According to Apptopia, an app analytics firm, the games have had a total of 23.3 million downloads and an average daily user base of 1.7 million. With 221 million customers, that is less than 1% of the total.

Read Also: Netflix takes a hit in its Q2 subscriber count 

In recent months, as the firm has faced more intense competition for users’ attention, it is debatable that the importance of games to Netflix’s overall strategy has increased. In the second quarter, Netflix saw its first subscription decline in more than ten years, shedding over a million subscribers after losing 200,000 in the first.

In a communication to its shareholders last year, Netflix mentioned Epic Games and TikTok as two of its main competitors for consumers’ attention.

Greg Peters, the chief operating officer, said that Netflix has been learning how games can keep users on the service for “many months and even years” now.

A number of genres and Netflix series, including “Stranger Things: 1984,” are covered by the company’s current selection of 24 gaming applications. Some of them are based on well-known card games, including “Mahjong Solitaire” and “Exploding Kittens,” for example.

A company spokesman stated that by the end of the year, there would be 50 games in the library, including “Queen’s Gambit Chess,” a game based on the popular Netflix series.

Opinions expressed by San Francisco Post contributors are their own.

Jennifer Smith

A social-media savvy and works as an IT consultant on a communication firm in Los Angeles. She manages her blog site and a part-time writer.

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