Video games have emerged as something of a niche interest to producing the most popular and profitable entertainment products on planet earth. Grand View Research recently valued the global video game market at US$217 billion in 2022. That same report predicted that the market would post a compound annual growth rate (CAGR) of 13% from 2023 to 2030. It should come as no surprise that some of the top names in media and tech are hungry for a piece of that pie. Enter Netflix.
The story of Netflix (NASDAQ:NFLX) never gets old for those who followed the rise and fall of Blockbuster Video. Netflix leveraged its successful but relatively modest DVD rental and sales business to jump head-first into the fledgling streaming space. This company continued to bet on itself, spending big on prestige dramas as it looked to generate the kind of buzz that its rivals had achieved. Though it never became a consistent critical darling, its early successes like House of Cards, Orange is the New Black, and Stranger Things helped make Netflix the most dominant player in the streaming industry.
Netflix has prided itself as a successful technology company, rather than a media giant. However, with the prestige of tech comes the pressure to innovate. The company came out of the so-called “streaming wars” in a still strong position and managed to bolster its earnings with its controversial crackdown on password sharing.
Recently, Netflix CEO Greg Peters said the company was taking it slow with its foray into gaming. One of the ways it hopes to garner prestige is to greenlight more video game adaptations. For example, it is rumoured to be working on a live action Grand Theft Auto series. Beyond that, the company has remained somewhat secretive when it comes to any potential video game content being produced.
History has shown that Netflix can execute a bold pivot. It would be foolish to count out the company as it sets its sights on the video game industry.
