Netflix might consider ads, in-app purchases for games
Netflix is looking into ways to make money from its gaming offerings, as the current economic climate takes a toll on the company's finances, according to The Wall Street Journal. At present, Netflix subscribers can enjoy gaming on the platform without any ads or in-app purchases. However, insiders have shared that the streaming giant is considering various strategies to generate income from its gaming ventures, which have been a financial drain until now.
Why does this story matter?
Netflix has invested millions in its gaming ventures in order to boost subscription numbers. Despite that, the games haven't really brought in a ton of subscribers, resulting in substantial financial losses. Netflix is aware of this situation and is now exploring strategies to mitigate the losses and generate additional revenue. However, the potential solutions the company is planning to adopt might spark some controversy.
Possible monetization strategies and concerns
Some options Netflix executives are reportedly mulling over include in-app purchases, selling full-price games, and introducing ads for the $7.99/month ad-supported tier. While these ideas could potentially bring in revenue, they might also trigger a backlash. For example, charging full price for games may not sit well with subscribers who already pay monthly fees. Additionally, adding ads to the gaming experience for those on the lowest-priced plan could lead to frustration among users as they are already playing games ad-free.
