Netflix, the world’s largest streaming company, has acquired game maker Night School Studio, marking its first deal in the lucrative games industry.
Netflix, based in Los Gatos, Calif., Said that the acquisition of Night School Studio, which is best known for its supernatural mystery graphic adventure game Without beef, is part of the “storytelling” mantra that has defined the streaming service’s strategy. The companies did not disclose the value of the transaction.
“Their commitment to artistic excellence and their proven track record make them invaluable partners as we together develop the creative capabilities and game library of Netflix,” said Mike Verdu, vice president of game development at Netflix, in a statement. blog post.
Netflix’s push into the industry comes as mobile gaming gains popularity amid social distancing measures made necessary by the Covid-19 pandemic. The mobile gaming market will grow at a compound annual growth rate of 11% to $ 272 billion by 2030, from $ 98 billion in 2020, according to ResearchAndMarkets.
The category is also larger than the PC and console markets combined, contributing around 57% of global video game revenue of $ 173 billion last year.
The streaming company, which first outlined its gaming foray plans during its second-quarter earnings call in July, will also focus on mobile titles and will be offered with member subscriptions.
Netflix said it has also launched five mobile game titles in select European markets. These will be included in members’ subscriptions, “all without ads and without in-app purchases”.
Night School Studio’s games will be the first non-mobile titles in Netflix’s newly launched portfolio.
Netflix also faces a number of big names in the gaming space as it seeks to diversify its offerings. Apple – which is a direct competitor of Netflix with its TV + service – has its Arcade service, while Google has Stadia and Amazon has Luna. Collectively, these American tech companies are called FAANG – Facebook, Apple, Amazon, Netflix, and Google.
“As we are almost a decade into our push into original programming, we believe the time has come to learn more about how our members enjoy games,” the company said.
Netflix saw an 87.9% year-over-year increase in the second quarter, adding 1.5 million paying subscribers in three months, beating analysts’ forecasts by one million. Net income reached $ 1.3 billion, almost $ 633 million more than in the same period a year ago.
The streaming company expects paid net additions of 3.5 million subscribers in the third quarter, up from 2.2 million added in the same period a year ago.
Updated: September 29, 2021, 08:53