Netflix looks to video games to boost growth

Global streaming giant Netflix on Tuesday said it added more subscribers than expected in the recently ended quarter and will add video games to its entertainment mix to fuel growth.

The company ended the second quarter with 209 million paid subscribers and revenue of $7.3 billion, some 19 percent higher than the same period a year earlier, according to an earnings release.

Profit was reported at $1.35 billion as compared to $1.7 billion in the preceding quarter. The net income figure missed market expectations.

The streaming leader said the pandemic had "created unusual choppiness" in its results after strong growth last year during the pandemic, which has now subsided.

Netflix said it is continuing to invest in content as production recovers from pandemic-caused delays, and that it is "in the early stages of expanding into games."

"We view gaming as another new content category for us, similar to our expansion into original films, animation, and unscripted TV. Games will be included in members´ Netflix subscription at no additional cost similar to films and series,” the streamer said.

Netflix recently recruited a video game veteran from Facebook to lead its gaming team.

Mike Verdu was hired to take charge of video game development at the Silicon Valley company, which has openly said hit games such as Fortnite are its competition for people's online entertainment time.

Netflix has dabbled with games before, releasing an interactive Bandersnatch episode of original series Black Mirror and also a free mobile game spinning off its hit show Stranger Things.

“In the race to entertain consumers around the world, we continue to compete for screen time with a broad set of firms like YouTube, Epic Games, and TikTok (to name just a few),” Netflix said in the earnings release.