Today, Netflix released its third-quarter financial results, and it would be inappropriate to say there is a lot of good news. In addition to exceeding forecast revenue for this term, the company also added more than 1 million new subscribers, once again exceeding expectations. With the positive news today, the company also shared a few things it will do going forward, such as investing in more shows and movies as well as expanding its game lineup.
While that last part might make you scratch your head, it looks like Netflix is doubling down on its game offerings. The company stated that in its first year of gaming, it was all about learning the way of the land and how its fans would react to the company’s new initiative. The service currently offers 35 games as part of its subscription plans, and appears to be seeing “encouraging signs” of games leading to increased subscription retention. For this reason, the company is delving into the gaming arena and currently has 55 games in development, some of which are based on Netflix original properties. The company mentions that it will be investing in games over the next few years, so it will be interesting to see where that leads us.
The company also discussed the new ad-supported service category, saying it will arrive on November 1 in Canada and the United States. It will expand to nine more countries during the first two weeks of November, giving users around the world a new, less expensive option for the service. Netflix has hinted that there may be an expansion of plans in the future, but has stated that it wants to keep it simple for the initial launch. Moreover, it also reiterated its plans to allow account sharing users to branch out to new accounts through its recently announced transfer service. What is clear is that Netflix appears to understand its own landscape, citing social media, YouTube, and other traditional forms of media as competition for its own service. It will be interesting to see how he handles things moving forward.
source: Netflix (Investors page)
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