With this red-hot industry now bigger than movies and music combined, Netflix has begun pushing even harder into it, and towards its future…

Video games.

In a “surprise” move, the company announced it will team up with French video game giant, Ubisoft, in hopes of rejuvenating its streaming subscriber issues, and turning the corner on its last Q2, which showed declining year-over-year profits.

This move, however, is not much of a surprise at all, really.

Netflix has seen the writing on the wall. In hopes of remaining relevant, the company has already released mobile video games, including “Stranger Things,” to its members. Now, the company is looking for more ways to take advantage of the video game market…

A market that’s outpacing video streaming by leaps and bounds; and is already the dominant media for entertainment, globally. We’ll get to the details on this in just a moment.


In partnership with Ubisoft, Netflix plans to create three games based on the current gaming ecosystems of Assassin’s Creed, Valiant Hearts, and Mighty Quest. And, in an exclusivity deal, Ubisoft will develop the Assassin’s Creed mobile game for Netflix and Netflix alone.

Mike Verdu, VP of Games at Netflix said, “We’re thrilled to work with Ubisoft, whose track record creating memorable worlds for fans is unmatched…

“This partnership will provide our members with exclusive access to some of the most exciting game franchises as we continue to build a catalog of great mobile games for our members around the world.”

With Netflix’s streaming subscriptions on the wane, having lost over 1 million paid members this year alone, and its second quarter profits coming in 1.34% below last years Q2, the company is making a strategic shift into the video game market.

It’s a market Netflix hopes will revitalize its prospects for the future.

Recently, the company began expanding its gaming capabilities with the acquisition of Next Games. However, this partnership with Ubisoft could lead to a much larger penetration into the market; especially if the partnership expands, or (unsubstantiated rumor) Netflix acquires a large, direct stake in Ubisoft.

And it makes perfect sense for Netflix.

Revenue for the entire video streaming industry, in which Netflix bases most of its own revenue on, was roughly $72 billion last year… and is expected to reach $115 billion by 2026.

However, revenue across the global video game industry is expected to hit $200 billion this year alone.

Clearly, Netflix is looking to take advantage of a strong market that continues to grow, according to Grandview Research, at a near 13% compound annual growth rate (CAGR) to 2030.

As Netflix may know, there may be no stronger industry, even in a global economic slowdown, than video games…

And is investing in its future accordingly.

Discover potential investment opportunities in the video game industry, HERE

Or read more about the Netflix/Ubisoft partnership, HERE


Source: https://www.cityam.com/netflix-teams-up-with-ubisoft-in-video-game-push/