To generate revenue from gaming business, Netflix is mulling in-app purchases and ads

Having launched the gaming division on its streaming app two years back, Netflix has been ‘internally’ mulling over strategies like in-app purchases, charge a premium for more premium titles and display ads on games that subscribers to its ad tier have access to.

As per reports, these internal discussions have been happening at the streaming giant’s end for various months now as Netflix aims to churn out higher revenues from its gaming division.

“These methods are common (and effective) in the mobile gaming world, with consumers expected to spend $111.4 billion on mobile games in 2024,” reports suggest.

However, not every discussion leads to action and hence Netflix, who had earlier expressed that it has no plans to introduce ads or in-game purchases during April 2023’s earning call, may pivot away from monetising games.

At the time, Greg Peters, Co-CEO, Netflix, told investors, “We want to have a differentiated gaming experience and part of that is giving game creators the ability to think about building games purely from the perspective of player enjoyment and not having to worry about other forms of monetisation, whether be it ads or in-game payment.”

But that being said, the streaming company has developed over 75 mobile games including Netflix Stories: Love Is Blind, Grand Theft Auto: The Trilogy- The Definitive Edition, Vikings: Valhalla, Into the Dead 2: Unleashed, Football Manager 24 Mobile and more.

Various reports also suggest that Netflix is developing a high-budget PC game and may consider charging for the same.

So far, the streaming giant has spent over $1 billion on its gaming division, acquiring studios, IPs and developing new projects.

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