- After two years of offering free mobile games, Netflix discusses monetization strategies and ads for ad-tier subscribers.
- This pivot could offset expensive new projects as Netflix struggles with declining subscribers and losses.
- However, monetization risks disrupting differentiated user experience if not thoughtful after years of free games.
Two years after launching mobile games free for subscribers, Netflix reportedly considers ways to generate gaming revenue. According to The Wall Street Journal, the company has discussed implementing common mobile monetization strategies like in-app purchases and placing game ads for its ad-tier subscribers.
Fighting a declining subscriber base
While Netflix declined to comment, the move would make sense given growth and profit struggles. After losing subscribers for the first time in 2022, Netflix raised prices again recently.
Discussions also don’t always lead to implementation – during an April 2023 earnings call. Executives touted not needing to worry about “monetization” in Netflix games.
A big bet on gaming
Plans can pivot, though, especially after tough years. Netflix previously reversed stances on launching an ad tier and account sharing crackdowns. Generating gaming revenue could offset expensive new projects – the company posted a job listing for a AAA PC game director.
With analysts calculating Netflix has spent $1 billion on gaming so far, monetization may finally help justify costs.
Big potential if it works
As the mobile gaming market experts to top $111 billion this year, Netflix has the potential to capitalize on subscriber engagement through strategic gaming monetization.
However, it risks disrupting a differentiated user experience if not implemented thoughtfully after two years of free game offerings.
