Netflix plans to offer video games in push beyond movies and TV shows

Netflix Inc., marking its first big move beyond TV shows and films, is planning an expansion into video games. Netflix plans to offer video games in push beyond movies. TV shows flex Inc., marking its first big move beyond TV shows and films, is planning an expansion into video gamestflix Inc., marking its first big move beyond TV shows and films is planning an expansion into video games and has hired a former Electronic Arts Inc. and Facebook Inc. executive to lead the effort.

Mike Verdu will join Netflix as vice president of game development, reporting to Chief Operating Officer Greg Peters, the company said on Wednesday. Verdu was previously Facebook’s vice president in developing games and other content for Oculus virtual-reality headsets.

According to a person familiar with the situation, the idea is to offer video games on Netflix’s streaming platform within the next year. The games will appear alongside current fare as a new programming genre -- similar to what Netflix did with documentaries or stand-up specials. The company doesn’t currently plan to charge extra for the content, said the person who asked not to be identified because the deliberations are private. Lix shares gained as much as 3.3% to $566 in late trading after Bloomberg reported the news. The stock had been up 1.3% this year through Wednesday’s close.

Netflix has been seeking ways to keep growing, especially in more saturated markets such as the U.S. That’s included building out its kids’ programming, opening an online shop to sell merchandise, and tapping Steven Spielberg to bring more prestigious movies to its lineup. The company remains well ahead of streaming rivals such as Disney+ or HBO Max, but it added fewer subscribers than expected in its most recently reported quarterWelcome

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Netflix plans to offer video games in push beyond movies and TV shows

By Lucas Shaw and Mark Gurman | Bloomberg | Last Updated at July 15, 2021, 06:59 IST

Topics Netflix | streaming services | Video games

Netflix Inc., marking its first big move beyond TV shows and films, is planning an expansion into video games and has hired a former Electronic Arts Inc. and Facebook Inc. executive to lead the effort.

Netflix shares gained as much as 3.3% to $566 in late trading after Bloomberg reported the news. The stock had been up 1.3% this year through Wednesday’s close.

Netflix has been seeking ways to keep growing, especially in more saturated markets such as the U.S. That’s included building out its kids’ programming. Netflix’s plans to add games have already begun to appear in files hidden deep within the company’s app, according to research conducted by iOS developer Steve Moser that was shared with Bloomberg.

Netflix has previously licensed the rights to games based on its shows -- including “Stranger Things” -- but this new initiative is much larger in scope. The Los Gatos, a California-based company, has yet to settle on a game-development strategy, said the person. In typical Netflix fashion, the company may start with just a few games and build from there.

Interactive shows

Netflix also has made earlier forays into interactive programmings, such as choose-your-own-adventure-style shows. It created versions of programs like “Carmen Sandiego” and “Black Mirror” in that format, stopping short of being a true video game.

Netflix co-Chief Executive Officers Reed Hastings and Ted Sarandos have shared their interest in pushing into gaming in recent calls with analysts. They’ve also identified the battle-royale shooter game Fortnite as a competitor for its customers’ time.

Still, Hollywood studios have a checkered history in the video-game business. Some companies have had many successes licensing their movies or TV shows for games, and Warner Bros. has created a handful of hit titles in-house over the years.

But Disney, the world’s largest entertainment company, shut down most of its in-house gaming operations after years of unsuccessful efforts. It has since focused on licensing Marve.