Retaining existing subscribers
Both Netflix and TikTok have transformed the entertainment business.
They appear diametrically opposed on the surface. The former gets revenue from subscriptions, and spends millions of dollars on licensing or creating content. The latter makes money by linking viewers to advertisers, with the help of streaming “influencers” who have mastered the art of short-form video.
However, the two platforms share some key characteristics. They both:
deliver video content via the internet
aim to constantly grow their user base
benefit from unique and original content
Many well-loved films and television series are departing Netflix for competitor platforms. At the same time, TikTok is also losing short-form video influencers to other platforms. Both platforms are seeking new strategies for subscriber retention, growth, and original content.
This is where gaming comes in. According to one consumer insights report, 79% of the world’s online population engages with games in some form. And millennials rate gaming as either the most popular, or second-most popular entertainment activity – behind watching other people play games on video platforms.
Why is gaming an attractive space?
Games typically afford longer engagement periods than series or movies. This is due to the psychological principles of motivation that underpin most gameplay.
People invested in games will often seek out additional narrative (or “lore”) in the form of shows and movies. Alternatively, audiences invested in shows may also look to video games to provide alternative narratives and opportunities for world-building. So shows lead customers to games, and games keep them engaged between season releases.
This technique of telling a story across multiple platforms and formats. This is what platforms are banking on to keep audiences locked into their entertainment ecosystems.
Content creation has boomed since the pandemic, and younger audiences are spending more time than ever watching user-generated content online. They have been particularly tuned into games such as Crab Game (a fan-made version of the popular Netflix show Squid Game) – which also has millions of view hours on the streaming service Twitch.
The rise of Minecraft as a popular “modding” game (in which players can collectively transform the game space through their own modifications) has also helped video streaming and subscription services. Minecraft-related videos have been streamed more than one trillion times on YouTube.
Netflix and TikTok can lose big
When we speak of the streaming wars and greater competition, it’s not a level playing field. There are crucial differences between Netflix and TikTok, and other players such as Disney+, Amazon Prime, Apple TV and YouTube.
Netflix is in the streaming business, and TikTok in the video-hosting industry.
For these companies, streaming and video hosting is a small side business that provides useful data to feed a greater machine. So in the “streaming wars” they don’t have as much to lose, as they can run these side businesses at a loss.
Netflix and TikTok aren’t so lucky. By turning to games, they’re grabbing onto a lifeline they really need.
For example, one could easily imagine that a character who is popular in a game, as revealed through gaming data, would also be more likely to feature in an upcoming show based on that game.
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