Why Less than 1% of Netflix Subscribers Downloading Games Is “Not a Bad Start”

Despite the fact that less than 1% of Netflix subscribers have downloaded the company’s games, a Sensor Tower analyst stressed that Netflix was just getting started with its video game offering.

Netflix’s mobile games have been downloaded more than 23 million times worldwide by an average of 1.7 million users, according to figures released last week by analytics company Apptopia (via CNBC).

That would account for less than 1% of its 221 million subscribers, CNBC noted, adding that the streaming giant hopes to expand its catalog from its current 24 titles to 50 by the end of the year, which would double its offering.

Back in June, Sensor Tower reported that Netflix mobile titles were downloaded 13 million times worldwide. In conversation with GamesIndustry.biz Craig Chapple, Sensor Tower’s mobile insights strategist for EMEA, said today that it’s “important to remember that Netflix is ​​still in the early stages of its mobile gaming strategy.”

“Data from Sensor Tower shows that downloads for mobile games released by the company didn’t really pick up until November,” he added.

“Although it has steadily made some acquisitions and released some existing and new titles, it will really take time to grow the business. It’s going to take time for those studios to create new games that have a chance to be successful, and Netflix has only really just started announcing games based on its large intellectual property from the company’s TV and film offerings.”

“Mobile game downloads published by [Netflix] really ramped up in November”Craig Chapple, sensor tower

Chapple emphasized that one of the biggest challenges Netflix is ​​facing right now is that its games aren’t available on other platforms.

“The account registration requirement creates a barrier for consumers who are accustomed to quick and easy access to F2P titles on the App Store and Google Play,” he continued. “Netflix also hasn’t historically done its marketing like other companies, so we don’t see huge, expensive user acquisition campaigns that really push the top mobile titles to get millions of installs over short or long periods of time. So here it is operating with a different strategy at the moment.

“In that context, I think it’s not a bad start for Netflix at all. The challenge will be to keep ramping up the release schedule and continue to support the gaming side of the business, as well as release engaging titles that aren’t available anywhere else on mobile. If Netflix can do that, then combined with its very high engagement rate with subscribers to its TV and film content, there’s a lot of potential. But that won’t happen overnight.”

Chapple also said that “games could become another important touchpoint for user retention” on Netflix, but reminded that success in one area (streaming in Netflix’s case) does not guarantee “sure success” with an additional game offering.

“In the past there have been very popular platforms that have added instant games or storefronts to their offerings that have not been very successful,” he said. “But I think the difference with Netflix is ​​that it has this important IP that could catch on.”

Netflix has ramped up its gaming efforts recently, acquiring three studios — Oxenfree developer Night School Studio in September 2021, Finnish mobile developer Next Games, and Boss Fight Entertainment in March 2022.

Earlier this year, the company named Roberto Barrera, PlayStation’s former senior director of corporate strategy, as its new head of gaming strategy, planning and analysis.