Netflix Considering Another Way to Get More of Your Money

Folks have been giving Netflix an inch with their password and advertising changes, but this might be taking it too far.

By Andrew Roberts

Netflix is seeking ways to relieve you of more of your money. According to The Wall Street Journal (H/T Indiewire), executives at Netflix have been discussing using microtransactions to boost profits through the platform's new gaming hub.

"We want to have a differentiated gaming experience, and part of that is giving game creators the ability to think about building games purely from the perspective of player enjoyment and not having to worry about other forms of monetization, whether it be ads or in-game payment," Netflix's co-chief executive Greg Peters informed investors back in April.

According to Indiewire, Netflix has no comment when reached for one, though they note a spokesperson pointed to a specific line in the Wall Street Journal report. "Netflix encourages open debate internally on its strategy, which is a key pillar of its culture, and such discussions don't mean the company will decide to monetize games," the quote says.

The issue is that this isn't the first time the company has changed direction. As IndieWire's Tony Maglio points out, Netflix once was more loose with its views on password sharing and had no plans to start running commercials on the platform. The games the platform offers recently took a big step forward with the addition of Grand Theft Auto's trio of remasters for their PlayStation 2 entries. GTA: San Andreas represented 11 percent of Netflix's game downloads in 2023.

Microtransactions are nothing new in gaming and there are countless attempts available to change up cosmetic changes and costumes, to more serious DLC packs that can change the game considerably with those who play online. According to Aaron Jacobson, CEO of Zollpa Games, while speaking to IndieWire, the bigger problem could be when the transactions change the actual gameplay.

"Pay-to-win games are almost never popular, and it's made worse when you've already paid for the game via a subscription service like Netflix," Jacobsen tells the outlet. The big issue will be if Netflix starts charging a "subsidized fee" for games, charging users without making it upfront.

The service launched in 2021 and you can usually see the offerings when you check out your mobile order. 2023 saw the service net 81.2 million global downloads, with the game Too Hot to Handle: Love Is a Game leading the pack with 7 million of those downloads. The strategy to this point is more engagement with the Netflix IP, like Stranger Things or another Netflix original.

"Even simple and cheaply made video games allow fans to interact with IP for hours beyond the runtime of any show or film it may derive from," IndieWire quotes from a note to clients from MoffettNathanson lead gaming analyst Clay Griffin. "Fans may be forced to wait months or even years between the release of new seasons or films set within an IP universe. Games can help sustain them through that wait."

Trending Now: