Netflix confirms the rise of video games as their growth slows
Netflix reports worst consumer slowdown in eight years as people are born with their own epidemic
San Ramon, California. Netflix reported the worst slowdown in consumer growth in eight years as people emerged from their epidemic. But the answer is: video games.
On Tuesday, the streaming giant plans to add video games to its existing shopping plans at no extra cost. It did not release any details except that it will initially focus on mobile games.
The financial crisis shows that the video service added 1.5 million subscribers during the April-June period. This is slightly better than the slight increase that the administration has predicted after a slow stumble due to service during the winter months, but much lower than the growth rate in recent years.
Netflix’s 5.5 million subscribers in the first six months of this year indicate its weakest first-half performance since 2013. This is the time when the company was still launching more original programming instead of licensing old TV series and movies.
Now Netflix is taking another leap by offering video games. The Los Gatos, California-based company unveiled the move last week when it revealed it was hiring an experienced video game executive, Mike Verdo, to explore potential opportunities in other areas of entertainment.
“We see gaming as another new content category for us, like our expansion into original movies, animation and non-script TV,” Netflix wrote in a letter to shareholders Tuesday.
Netflix’s Heft has also generated steady profits. The company earned 1.35 billion or 2.97 shares per share, almost double that of the same period last year. Revenue rose 19% to .3 47.3 billion from a year earlier.
But the poor numbers in the first half have changed dramatically over the past year, when government-imposed lockdowns around the world have put people under siege at home. Already the world’s largest video streaming service, when the epidemic began in March 2020, Netflix picked up 26 million subscribers in the first half of last year. .
While no one expects Netflix to sustain this volatility, consumer growth this year has been slower than expected. Shares of Netflix fell nearly 10 percent from a high of $ 593.29 six months ago. Shares in the expanded trade rose slightly after Tuesday’s news.