Netflix, Inc. is no doubt the most prominent digital entertainment platform present out there. The American Over the top or OTT content platform production corporation has its headquarters in Los Gatos, California, founded by Marc Randolph and Reed Hastings. The company’s primary business is to provide subscription-based streaming services and offers a vast library of movies, TV series, including its in-house productions.
Netflix is a member of the Motion Picture Association (MPA), which produces and distributes movies and other content all over the globe. Netflix has added over 208 million Subscriptions in April this year, with 74 million alone in the United States and Canada.
Netflix’s Q2 Growth Misses Investors expectations
With an income of over 2.76 billion US dollars in the year 2020, Netflix’s annual revenue has reached a whopping 25 billion US dollars. However, The streaming Giant has recently announced its June quarter that is Q2 earnings. Netflix published a gain of 7.3 billion US dollars, with guidance and a 19% increase from the last year’s quarter.
However, the profit was way below the company’s expectation forecast, which was 3.16 billion US dollars, which might have upset some investors. As a result, we have seen a dip in Netflix’s share this Tuesday, which later rose to green. Netflix’s expansion into the game market will excite the shareholders, as this will be a relatively new business area. And according to the higher-ups in Netflix, it will help increase their hold on the ever-expanding market. With an increased revenue.
Netflix’s Venture into the Gaming Industry
The Netflix.Inc has announced on July 20th, on the occasion of the publication of their Q2 earnings, that the streaming giants will be stepping into the world of video game streaming. The announcements also confirm that the firm is already in the early stages of streaming video games, with mobile devices’ primary target. This step will mark a diversification of Netflix’s from its core entertainment business. Experts say that this decision was made after not being able to achieve its goal in quarter two. And also, the increase in saturation in the streaming market combined with the ease of COVID-19 restrictions in many countries, especially the United States, Canada, and most of Europe. This has caused consumers to spend less time indoors, which led to a fall in viewership.
Netflix has also brought in Facebook’s executive Mike Verdu. So who is a veteran in the video game industry to see the company’s ambitious plan to success? However, there is news that many investors are watching the company’s new venture closely. Now, most eyes will be on what Netflix anticipates for its third quarter. For Q3, the streaming giant has already predicted to add about 3.5 million net subscribers, with investors eyeing over a net 5.46 million subs. For the first half of the year, Netflix has spent 8 billion US dollars in cash for content and expects a content amortization of around 12 billion US dollars for the entire year. According to Chief Operation Officer Greg Peters, the company is focusing on experiments and seeing what works in the future.
New Games for Netflix’s App And Confrontation With Apple Inc.
Netflix’s last week’s announcement to venture into video games has put the streaming giant on a confrontation path with Apple Inc. Netflix’s top executives have already announced their intention to stream live video games and that they are already in the early stages of their expansions. Netflix has always experimented with genres, including interactive television series like “Black Mirror: Bandersnatch” and hits like “Stranger’s things.” Netflix has also released mobile games based on these two series.
However, in the recent development, Netflix has hired new executives to jumpstart the actual production of a mobile-based game for its mobile application. This path is not free from challenges; the major one indeed is Apple Inc. Netflix may need Apple’s permission for streaming games on IOS mobile apps and Ipads. One of the significant factors for Epic Game Inc’s high-profile antitrust lawsuit against Apple Inc is the Apple store’s restrictions, tenable for some developers. As a result, Netflix Inc’s this new step is sure to have some ripple effects over its business structure.
Netflix’s New Strategy for It’s Younger Audiences
Netflix is now dedicating its resources to create a new viewer strategy for kids. It has already launched a dedicated kid Top 10 in the last few years. At the present moment, it seems that they are working on a few technical issues. But this will surely go a long way for the refinement of Kid’s content. The main reasons behind this are worth consideration. The principal being is helping its viewers to discover the range. The next step might be Top 10 in documentaries, Dramas, or across the genre in general. However, as of now, it is only Kid’s 10.
There is also big news for Kid’s information from Netflix this quarter. Netflix has extended its contract of the Universal animated film deal. This expansion ascertains Netflix’s multi-year access to titles of big franchises like Dreamworks and Illumination. Which also includes the IPs of the next installment like Shrek and Minions. With this expansion and their excellent partnership with Sony Pictures Animation, it is an assurance for some big hits for children’s for the next few years. Netflix’s in-house production is also trying to make some big hits of its own.
Other Announcements For Kid’s On Netflix
It seems there is no end to good news for kids as one of the other big news was a new contract with Moonbug Entertainment. This means it is a green light for a new series original for Little Baby Bum and CoComelon. Now for content performance, there are two new anecdotes for kids this quarter. First, Netflix’s excellent relationship with Sony Pictures and Animation produced one of the biggest Netflix animated films to date, The Mitchells vs. The Machine. The movie has a record of being watched by 53 million members in the first 28 days of its release. There is also a performance nugget for kid’s on Netflix as earning it is getting a second season.
For the upcoming movies, Sony Picture Animation’s Vivo is on the slate, which will follow the musical character of honey bear, which Lin Manuel Miranda will voice. Miranda is also busy with Encanto from Walt Disney Animation studio and is slated to be released in November. Some of the other kid’s movies coming this year are The Loud House Movie and M Little Pony: A new Generation.