Netflix’s gaming library has grown significantly since it launched in 2021 with a handful of games. Over two years later, the company’s aggressive strategy of buying up publishing rights to popular titles likeGrand Theft Auto,Oxenfree, andHadeshas made the service one of the best ways to play Android games, as long as you’re willing to put up with the monthly cost of a Netflix subscription.
All titles included in a Netflix Games subscription come without ads or in-app purchases. This is a massive draw to the service, especially when it republishes heavily monetized games already found on the Play Store. But, according toThe Wall Street Journal, the company is discussing how to generate revenue from its games through in-app purchases, ads, or paywalls, a move that could destroy any goodwill it has developed over previous years.
Netflix Games isn’t a successful service
In August 2022, just 1% of Netflix’s user base had downloaded a title from Netflix Games. A year later,the figure remained unchanged, but Netflix didn’t appear to be bothered, claiming it was planting the seeds for future success rather than relying on short-term growth.
Isometric roguelike Into the Breach exists on mobile thanks to Netflix
Part of this strategy relied on the lack of monetization in its games. This strategy allows developers to create mobile games without worrying about inserting ads or in-app purchases. Indeed, the popular indie game Into The Breach would never have come to mobile without Netflix. In an interview withTouch Arcade, lead programmer Matthew Davis stated, “I think it’s extremely unlikely the mobile version would have ever been finished had Netflix not presented an opportunity to distribute the game without the challenge of how to monetize it.”
If Netflix isn’t making money, change is necessary. But with the promise of no ads or in-app purchases forming such an essential component of Netflix Games, reversing course could spell disaster. But does Netflix have a choice?
Netflix is looking for a return on its gaming investment
Growth from the previous year
Monetization could make Netflix Games the worst gaming subscription service on mobile
Netflix Games competes with Google’s Play Pass on Android and Apple Arcade on iOS. Both subscriptions offer a similar service to Netflix Games: a subscription fee in exchange for games without ads or in-app purchases. Whiletheir execution varies significantly(Play Pass aims for quantity instead of Apple Arcade’s smaller but higher quality library), they have remained reliable presences in the mobile gaming world for years.
Netflix Games is only just starting to pose as a viable competitor to Play Pass and Apple Arcade thanks to its raft of exclusive games bundled into a Netflix subscription. However, should the company introduce in-app purchases or ads,its advantageswill disappear.
