NETFLIX CONFIRMS VIDEO GAME EXPANSION TO BOOST GROWTH

Greg Peters, Netflix’s chief product officer, said the company would initially focus on mobile games before eventually expanding to consoles and TV sets as well. The games will initially be tied to Netflix’s most popular programming, Peters said, but standalone titles may be added to the mix. He even speculated that Netflix eventually might create a TV series or film inspired by one of its video games.

“There’s a big, big prize here, and our job is to be really focused,” Peters said.

Despite this year’s growth slowdown, Netflix remains by far the world’s biggest streaming service in an increasingly competitive field that includes Walt Disney Co., HBO, Amazon and Apple. Netflix finished June with 209 million worldwide subscribers.

The conservative outlook suggests Netflix isn’t expecting an immediate boost from its foray into a highly competitive video game field already contested by more experienced companies such as Epic Games, Microsoft and Electronic Arts.

But if the move into video gaming pays off, it could eventually give Netflix more leverage to boost its prices. The company has already been gradually raising subscription costs in recent years, helping boost its average monthly revenue per subscriber to $14.54 in its biggest market comprised of the U.S. and Canada. That’s a 16 % increase from $12.52 per month two years ago.