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Netflix confirms transition to video games as growth slows | Business

San Ramon, CA (AP) — Netflix reported the worst slowdown in subscriber growth in eight years due to the emergence of people from pandemic cocoons. But there is an answer to that: video games.

On Tuesday, the Streaming Giants announced plans to begin adding video games to their existing subscription plans at no additional cost. We didn’t give any details at first, except to note that we’ll focus on mobile games.

The long-awaited confirmation of the game expansion was made in conjunction with the release of the latest Netflix Revenue Report.

Its financial breakdown showed that the video service added 1.5 million subscribers during the period April-June. This is slightly better than the modest increase in management’s forecasts after the service stumbled upon a sluggish start during the winter months, but still well below the growth rate of recent years.

Netflix’s 5.5 million subscribers gained in the first half of this year show that it had the worst performance in the first half since 2013. During this time, the company was developing more original shows instead of licensing older television series and movies.

Today, Netflix is ​​taking a leap forward by offering video games.A company in Los Gatos, California telegraphed the move last week When you disclose your employment Veteran video game executive Mike Verdu explores potential opportunities in another entertainment arena.

“Games are seen as another new content category for us, as well as original movies, animations and the expansion to unscripted television,” Netflix said in a letter to shareholders on Tuesday. I am.

Despite this year’s slowdown in growth, Netflix continues to be the world’s largest streaming service in increasingly competitive areas such as Walt Disney, HBO, Amazon and Apple. Netflix ended in June with 209 million worldwide subscribers.

The burden of Netflix is ​​also steadily generating profits. The company’s revenue was $ 1.35 billion, or $ 2.97 per share, almost double that of the same period last year. Revenue increased 19% from last year to 47.3 billion.

However, the low numbers in the first half were a dramatic reversal from last year, and government blockades around the world forced people into a glimpse of frenzy while being locked up at home. It was. When the pandemic began in March 2020, Netflix, already the world’s largest video streaming service, gained 26 million subscribers in the first half of last year. ..

No one expected Netflix to sustain its rapid growth, but the drop in subscriber growth this year was more severe than expected. Netflix shares are down about 10% from their peak of $ 593.29 six months ago. Stocks rose slightly in after-hours trading after the news was released on Tuesday.

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Netflix confirms transition to video games as growth slows | Business

Source link Netflix confirms transition to video games as growth slows | Business

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