The cloud gaming opportunity for Netflix

With the cost-of-living crisis hitting streaming subscriptions and a writers’ strike affecting the flow of new content, there could be a significant opportunity for Netflix in cloud gaming.

That’s the conclusion of market research firm Savanta, which carried out a recent study among 12,000 gamers across seven markets in Europe and North America. 

Context 

• Netflix soft-launched gaming downloads through its mobile app in November 2021 and is now extending its offer from downloadable mobile games to a fully fledged cloud gaming service accessible through connected TVs and laptops.
• A fifth (22%) of Savanta’s sample have already downloaded at least one game via Netflix’s mobile app, and the majority (77%) would likely do so again. Nearly half (45%) of those who had not previously heard about Netflix games would use the current service. 

Why cloud gaming matters

Much of the high-profile activity in the gaming space – Microsoft’s possible acquisition of Activision Blizzard and Google’s earlier efforts with Stadia – centres around committed gamers who have very different technical demands from the casual gamers that Netflix would be targeting. And the figures are compelling: if half of Netflix’s global audience of 238 million were to give gaming a go, the streaming platform could become a major force in the cloud gaming space – and open up new opportunities for advertisers. 

Takeaways 

• 70% of Savanta’s sample play mainly on their smartphone and over half (52%) prefer freemium games. 
• A third of committed gamers have already used a cloud gaming service, alongside 10% of casual gamers; 82% of those who have tried cloud gaming are likely to use it again.
• While nearly 44% of ‘non-passionate’ gamers and 26% of passionate gamers weren’t aware of cloud gaming prior to taking the survey, the concept is appealing. Of those yet to try it, Spanish gamers are most open to doing so (44%), followed by the USA (36%) and the UK (30%).

Key quote

“Netflix’s IP in the gaming space could offer a host of brand extension opportunities, including product placement, for brand advertisers” – Shaun Austin, Senior Vice President, Media, Savanta.

Sourced from Savanta