Netflix is revamping its gaming technique to win extra customers. Is it working?

Inside an workplace in Hollywood, not removed from the Walk of Fame and the Sunset Bronson Studios, Netflix govt Alain Tascan revealed new content material coming quickly to the platform — nevertheless it’s not a TV present or a film. It’s a brand new sport the place U.S. viewers compete to win hundreds of {dollars}.

The sport present, referred to as “Best Guess Live,” will run on weekdays at 5 p.m. PT, the place hosts Howie Mandel and Hunter March will unveil a set of 5 clues. Mobile sport gamers tune in to make their finest guesses. The earlier they will guess accurately with fewer clues, the upper the probabilities they will win extra of the prize cash. The present, filmed in Van Nuys, is Netflix’s try at appointment gaming for its viewers of greater than 700 million viewers.

“Can you imagine where you not only can go and play a game, but you could win a life-changing amount of money each and every day, and it takes no time, it’s easy, and you just have your phone?” mentioned Mandel, broadly recognized for his internet hosting activates NBC’s “Deal or No Deal” and “America’s Got Talent.”

The purpose is to make taking part in video games on Netflix “as simple as streaming a movie on a Friday, using the same innovative mindset that led Netflix to transform itself from a company shipping DVDs to streaming movies, shows and now games,” Tascan mentioned.

Netflix has been investing in its video games vertical for the final 4 years, with blended outcomes. Last month, the streamer’s co-CEO Greg Peters gave the corporate’s gaming efforts a B- grade. Under Tascan’s management, the division has targeted on some key areas, together with narratives based mostly on Netflix applications, video games for kids, social celebration video games and mainstream titles like “Grand Theft Auto.”

The adjustments seem like working. The variety of downloads for Netflix video games has elevated 17% to 74.8 million from January to October of this 12 months in comparison with the identical interval in 2024, in response to information from app analytics agency Appfigures. The firm can be releasing fewer video games, including 16 titles this 12 months in comparison with 35 final 12 months, Appfigures mentioned.

Netflix declined to touch upon the Appfigures information.

The firm has additionally eliminated video games partially attributable to low buyer engagement. Netflix has launched 142 video games, with 78 of them nonetheless energetic as of October, in response to Appfigures.

Its two hottest cellular video games have been launched on Netflix within the final two years, together with “Grand Theft Auto: San Andreas,” which got here on the platform in December 2023 and achieved 44 million downloads. The streamer launched an unique, the multiplayer celebration royale title “Squid Game: Unleashed,” final 12 months with 21 million downloads. The sport had tie-ins to the favored sequence’ second season the place gamers may earn money or wild tokens within the sport in the event that they watched a sure variety of episodes.

Some analysts say there’s nonetheless room for enchancment.

Journalists take part in a video games demo at a Netflix workplace on Wednesday.

(Netflix)

“It still seems pretty experimental,” mentioned Ross Benes, senior analyst at analysis agency Emarketer. “I don’t get the impression that they are on gamers’ list of their go-to sources of entertainment.”

On Thursday, Netflix mentioned its first slate of 5 video games for the TV, together with Tetris Time Warp, Boggle Party, Pictionary: Game Night and LEGO Party! at the moment are out there. Prior to the brand new slate, subscribers may solely play Netflix video games on their cellular units.

When shoppers load up the TV video games, they are going to see a QR code they will scan on their units and use them as controllers within the sport. For instance in Netflix’s model of Pictionary, customers draw on their telephones.

“A big switch in the strategy is really to make sure that we are eliminating any friction that somebody can encounter when they want to play,” Tascan mentioned in an interview. “We believe that on TV, in particular, where people enjoy their different shows, is the best place to offer something very easily approachable.”

The TV video games are the newest iteration in Netflix’s effort that started 4 years in the past. The firm had beefed up its workers after buying 4 gaming companies — Glendale-based Night School, Boss Fight Entertainment out of Allen, Texas, Finland-based Next Games and Spry Fox based mostly in Seattle.

Netflix shut down Boss Fight Entertainment final month.

The gaming division efforts have been first led by Mike Verdu, a former Facebook and Electronic Arts govt. He later transitioned to a task specializing in remodeling sport improvement and participant experiences with generative AI in November 2024 and left Netflix earlier this 12 months. Tascan, a former govt at Epic Games, was named Netflix’s president of video games in July 2024.

Games has been a horny space of funding for some firms, as youthful audiences spend lots of time taking part in titles like Roblox, Fortnite and Call of Duty. Tascan estimates there are 3 billion players on the earth and with Netflix having an viewers of greater than 700 million individuals, “the Venn diagram is pretty large.”

The streamer on Thursday additionally introduced new cellular video games for teenagers, together with digital coloring e-book “Barbie Color Creations” and a hairstyling sport, “Toca Boca Hair Salon 4.”

It will be difficult for firms to get into the area. For instance, in 2023, Google shut down its gaming service Stadia after it failed to achieve traction with customers.

Tascan mentioned Netflix just isn’t competing towards conventional gaming consoles however is trying to innovate and discover new methods to succeed in its clients.

Tascan mentioned he’s inspired by the reactions he has seen.

“It’s a step in the right direction,” he mentioned. “But at the end, how many people are going to have the same reaction? We are a company driven by data, and our main data is, how many people are going to engage?”

Tascan mentioned he thinks it is going to be just a few quick years earlier than Netflix turns into the Netflix of video games. He hopes the division can enhance from Peters’ grade of a B- to a better stage.

“What I hope is, by the end of the year, we’ll upgrade to an A, hopefully A+,” Tascan mentioned.