Netflix May Monetize Its Games Platform with In-App Purchases and Ads
Renowned streaming giant Netflix is allegedly looking into new ways to make money as it prepares to add in-app purchases and adverts to its gaming platform. The business has been having constant conversations about ways to monetize its gaming platform. For the past two years, a ton of mobile games have been available for free download for Netflix subscribers.
Netflix games might introduce ads and in-app purchases
Since entering the market, Netflix has increased its presence in the gaming industry and released a significant number of games. Since players have paid for the premium membership, the game is free of charge. However, the company is looking to change its current business model. In recent months, internal discussions have been held to discuss how to proceed with this plan. Netflix has been investigating different approaches to making money off its gaming platform. These consist of choices like implementing in-app purchases, setting a price for premium games, and adding advertisements to games that are available to subscribers in the ad tier.
The company has over 75 mobile games available, including Grand Theft Auto, Love is Blind, Monument Valley, and Oxenfree. The report claims that Netflix intends to charge for premium game titles and monetize game placement. The business declared last year that it didn’t worry about in-game and advertisement payments. In the world of mobile gaming, where consumers are predicted to spend $111.4 billion on games by 2024, these strategies are widespread (and successful).
Netflix games in public tests
Netflix has also established studios in Southern California and Finland, as well as acquired several IPs and development facilities. Additionally, there are rumors that the company is working on a PC game, which may be the reason it needs to increase revenue to finance the project and make more investments in the company. It would be a significant departure from the current revenue model if it proceeded with this plan and put the aforementioned into practice. As it stated during the April 2023 earnings call that it does not want to add in-app purchases and advertisements to the games on the platform, Netflix has so far offered all of the games for free.
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Current games hosted by Netflix
There are 86 games on Netflix right now. Furthermore, there are almost 90 more in development, some of which are based on Netflix’s original series. Over the previous year, the company released about 40 games, including third-party games like Football Manager 24 Mobile, and developed titles like Oxenfree 2: Lost Signals and Netflix Stories: Love is Blind.
Grand Theft Auto: The Trilogy – The Definitive Edition, which the company released last month, also brought the well-known GTA franchise to the platform. The company is creating video games based on the well-liked television program Squid Games. In this viewers will engage in competitive gameplay. Additionally, Super Evil Megacorp is developing a game based on the recently released Netflix film Rebel Moon, and a game based on Money Heist was just released.
Slow Netflix games subscriber rate
However, not many people have played the games and their adoption has been sluggish. Only 1% of subscribers played the games, according to data that was made public after the service’s first year of launch. This percentage hasn’t changed much. Even after more games have been launched, and despite Netflix Games having spent close to $1 billion, the company intends to increase revenue to succeed with these new concepts.
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Netflix’s recent password-sharing stint
According to the report, the streaming service originally opposed enforcing strict password-sharing policies and launching an ad-supported tier. For the first time in more than a decade, they lost thousands of subscribers in 2022. This led them to rethink their decision. It would make sense for Netflix to include in-game purchases and advertisements to monetize its game content. At the beginning of 2023, the company’s growth slowed, which resulted in a 3% reduction in its workforce.
Here’s what they said
Netflix co-CEO Greg Peters says the company wants to provide a unique gaming experience. It will provide creators with the flexibility to make games that are only intended for player enjoyment. They will be free from the worry of other revenue streams like in-game purchases or advertisements.
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 monetization, whether it be ads or in-game payment.
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How Live Service Gaming is Taking Brand Marketing to New Heights!
In the realm of video games, live service gaming is one of the best ways to accomplish brand marketing. Brand marketing is now reaching new heights. One example is the cohesively developed strategy game “Star Trek Fleet Command” for PC and mobile devices by Paramount and Scopely. This December marks the fifth anniversary of “Star Trek Fleet Command”. In order to accomplish objectives and gather resources, players can interact with other players while exploring the virtual “Star Trek” universe in the game. Every month on the first Tuesday, the game receives a fresh batch of ships, characters, and other content. The majority of the game’s revenue comes from in-game sales, and it is available for free to play.
What is live service gaming?
The term “live service gaming” describes techniques used to continually provide players with events, updates, and new content over a prolonged period of time. It seeks to hold players’ attention and keep them playing longer. Through its immersion of players in the Star Trek universe and encouragement to discover other related content, including TV series, Star Trek Fleet Command acts as a kind of brand marketing. It seeks to pique the curiosity of current franchise fans while drawing in prospective new ones.
Star Trek Fleet Command – Prime example of a live service game
Even though in-game purchases allow “Star Trek Fleet Command” to make money, its main function is as an engaging means of brand promotion. Its main objective is to keep the interest of long-time Star Trek fans while also attracting new ones. Doug Rosen, Senior Vice President of Games and Emerging Media at Paramount, stressed the value of creating a passionate fan base that goes beyond the actual game. The game serves as a spark, enticing players to check out more “Star Trek” media, like the recently released series on Paramount+.
Not a revenue stream
Star Trek Fleet Command, however, is not a straight revenue play for Paramount. Rather, it is an especially captivating kind of brand marketing meant to pique the interest of ardent “Star Trek” fans as well as win over new ones. As evidenced by the fact that “Star Trek Fleet Command” has no in-game advertisements, any money made from the game is of secondary importance.
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Fan base
“Star Trek Fleet Command” has a devoted and active fan base, which is proof of its success. There are hundreds of thousands of daily logins and close to 20 million downloads. This indicates a large number of active players. With over 98% of players regularly logging in, the games have an impressive retention rate. 90 percent of players are in it for the long run, with the majority participating for at least a year.
Significant investment in live service gaming
The user base of “Star Trek Fleet Command” has increased, and it now encompasses more of the Star Trek universe. Scopely has made a substantial investment in growing the Star Trek Fleet Command team. It did so to maintain this kind of long-term involvement. The development team consisted of about fifty individuals when the game was released five years ago. Since then, the group has expanded to about 250 members.
Scopely’s commitment to live service gaming
The expansion of Scopely’s “Star Trek Fleet Command” team is indicative of the significant financial outlay required for live service games to maintain long-term user engagement. It’s difficult to replicate the feat of creating a live service game that can entice players to return for five years. Creating and managing live service games can require a significant financial commitment. Brands who are prepared to put in the work can reap great rewards. Moreover, not all brands opt for this strategy due to the associated costs and lengthy lead times. However, live service gaming has shown itself to be an effective brand marketing tool. This is particularly true for long-lasting and devoted fan bases of franchises like “Star Trek.”
Final words
Summing it up, live service gaming offers a revolutionary chance for brand promotion. One such game that captivates millions of players and fosters a strong bond with the Star Trek franchise is Star Trek Fleet Command. Brands can expand their reach, inspire fan loyalty, and open up new growth prospects by cultivating a devoted and active fan base.
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JetSynthesys Collaborates with Animeta for Global e-Cricket Event GEPL
The Global e-Cricket Premier League (GEPL), a team-based cricket e-sports and entertainment league, debuted on Real Cricket 24 (RC24). Jetsynthesys co-owns RC24, a mobile cricket simulation game. To promote this, JetSynthesys has joined forces with Animeta, an AI-driven creator technology company, including artists and creators.
e-Cricket as a sport
Considering how well-liked cricket is as a sport already, the plan was to expand the target demographic beyond fans of traditional gaming and e-sports (120 million+ active users) and target viewers of cricket content on mobile devices (260 million+), with a sizable share of Gen Z viewers. Initially, the primary objective was to generate interest in and acceptance of the e-Cricket concept. Subsequently, Jio Cinema, the exclusive streaming partner of the GEPL, was benefiting from the generated buzz.
Tactics undertaken to raise awareness
The partnership began with the onboarding of eight seasoned mobile gamers known as the “Game Galvanizers.” Each person was given a team to support as they spread the word about RC24 and GEPL, igniting excitement throughout communities. The witty creative duo Funcho (Shyam and Dhruv) were onboarded as the “Series Galvanizers.” The goal was to use these Gen-Z-focused, culturally relevant, and cricket-loving creators’ star power to draw in a diverse young audience eager to watch GEPL.
Rock and hip-hop rapper EPR, alias Santhanam Srinivasan Iyer, along with other artists and gamers attended the event. Roughly one thousand fans attended a fan meet hosted by well-known game creator Shreeman Legend. Furthermore, ACE, Nasty Ninja, Yedha Anna, and 99 Side are four well-known rappers that Animeta collaborated with. They created the anthem “Find your Glory” for GEPL Season 1 to improve the viewing experience. By showcasing the game’s universal appeal across genders, eight vibrant female influencers helped to further diversify the target audience cohorts for GEPL.
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What is the Global e-cricket premier league?
JetSynthesys started the Global e-Cricket Premier League (GEPL), the largest esports competition in India. JetSynthests is a cutting-edge provider of digital entertainment and technology. JioCinema and Sports18 broadcast the inaugural season this month. It marked the release of Real Cricket 24, the first and only top-tier esportable game in India. The game boasts a whopping 27 crore lifetime downloads. In essence, the game is the most popular skill-based free-to-play (FTP) cricket simulation. The competition transcends the boundaries of conventional sports. It expertly fuses the excitement of video games with an unrivaled passion for cricket to capture millions of viewers every day.
Here’s what they said
Rajan Navani, founder and CEO, JetSynthesys, shared,
Cricket came to us from the West but today, I’m proud to say that our Made-in-India Real Cricket and GEPL have set the stage for India exporting cricket esports to the world. Animeta helped us onboard the right influencers and employ the correct influencer strategy to maximize the impact of these creators.
Rohit Potphode, CEO, GEPL, said,
GEPL stands as the largest eCricket league globally. In order to appropriately match its immense scale, we collaborated with Animeta- Brandstar, a specialized influencer marketing platform. This partnership allowed us to enlist renowned influencers spanning cricket, gaming, and entertainment domains, ensuring a broad reach across diverse audience demographics.
Devdatta Potnis, CEO, of Animeta added,
When you are trying to tap into a Gen Z audience, influencer marketing becomes an extremely important avenue, as social media is where this audience frequents daily. The approach was to tap into some key aspects across the whole spectrum of content habits that this audience has.
Biswamitra Ray, senior vice president, branded content and creator projects, at Animeta, commented,
Selection of credible and relevant voices and high-relatability in the content is key to a campaign’s success. Whether it was for the social media posts made by the creators or the song composed specially for GEPL – we looked deeply into universal insights about the audience, whose attention we were trying to grab.
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Indian Gaming Firms are Eyeing the Brazilian Market. Explore Why!
India is becoming a major gaming market; by 2028, it is expected that the industry will grow to $7.8 billion. Younger demographics, changing IT infrastructure, growing usage of mobile devices, and fast internet connectivity are the main drivers of the Indian gaming market. This growth is being further accelerated by the incorporation of technologies like augmented reality (AR) and the metaverse into computer and console games. The growth of the industry is also being aided by the government’s encouragement of game development, the increase in female leadership, and the move toward mobile and multiplayer gaming. Yet why are Indian gaming companies looking to Brazil? Let’s delve deeper into this article.
Indian gaming market
India, which has one of the largest youth populations in the world, is expected to be among the top markets for the gaming industry. One of the main reasons propelling the nation’s market growth rate is the expanding IT infrastructure, which is being fueled by the growing use of smartphones and high-speed internet. Everything from the value of localization to player preferences for in-game revenue Indian players use video games to help them decide which business decisions to make. As per the All-India Gaming Federation, India is the country that downloads the most mobile games (15 billion downloads annually), followed by the US and China.
Brazil, the land of new opportunities
Brazil’s gaming market is very similar to India’s, so Indian game companies are hoping to introduce their products there. This is attributed to the tighter regulations and higher costs associated with acquiring new customers that are driving this initiative. Brazil is the fifth largest gaming market in the world by player count, and it ranks fourth in the world for mobile games with 5 billion downloads. A report claims that it is one of the Latin American markets with the fastest growth rate. Brazil also has a young population with more people having affordable, high-speed internet access.
Additionally, Brazil’s gaming revenue ranks 10th globally, with projections of $446.10 million market revenue in 2027. Gaming companies are excited about Brazil’s increasing average revenue per user (ARPU), in addition to the country’s rapidly increasing smartphone penetration. Brazil is a rich land of opportunity because of all these factors, which is why Indian gaming companies have decided to invest more and make plans to establish a presence in the country in the upcoming years.
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Possibilities for growth
Investigating developing markets like Brazil can help game studios reach a more varied and interested audience through cost-effective customer acquisition. Brazil is a market full of opportunities and excitement. Therefore, Indian gaming firms are now eyeing the Brazilian market. In a few aspects, the typical Brazilian gamer is remarkably similar to the typical Indian gamer. According to Brazil’s Central Intelligence Agency, 16.5% of the country’s population is between the ages of 15 and 24. Both of these markets share a similar user profile and set of preferences. Both have a strong fan base for casual games like HopScotch and hardcore games like Battle Grounds, Free Fire, and Call of Duty.
Tightening gaming laws in India
Large and small gaming companies operating in India have recently had to reevaluate their plans due to new regulations. This holds especially true for those involving the Goods and Services Tax (GST). Gaming companies are required by the new GST regulation to pay a 28% tax on player deposits. Due to the increased operating costs, gaming companies have referred to this as a fatal blow to the industry. In addition, Indian gaming companies are looking at opportunities in foreign markets. This is due to the country’s growing costs associated with acquiring new customers.
Profitability and income
Similar to India, Brazil monetizes games through microtransactions that allow users to unlock exclusive features. About 58% of respondents to a survey claimed to have made in-app purchases. These included power gems in casual games or guns in the Battle Royale game. These purchases can cost anywhere from $5 to hundreds of dollars.
Similarly, Brazilian gamers stated that getting special advantages like early access to particular features was the main reason they bought anything in-game. Brazil is not like India in that it has a higher propensity to spend money on in-app purchases. Data indicates that the ARPU of video games is $2 in India and roughly $27 in Brazil. Because of the higher in-game spending per user in Brazil, this results in a higher ARPU.
Brazil: Cultural ties and government assistance
Brazil Pix is a payment method developed by the Brazilian government. It is becoming more and more popular among gamers as a means of making purchases. Furthermore, it is a major contributor to growth. It’s a peer-to-peer payment system that works similarly to India’s UPI. Over time, gaming companies hope to use games to bridge cultural divides within global gaming communities. This entails bringing Indian games to Brazil and making Brazilian games more well-known among Indian gamers. Doing so will benefit both players and game developers.
Conclusion
The combination of creativity, technology, and cultural quirks promises an exciting future for gamers and the gaming industry in Brazil and India. The gaming companies are set to capitalize on the Brazilian market. This trip will undoubtedly offer countless opportunities for cooperation and bridging disparate communities worldwide.
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Revolutionizing Philippine Gaming: Adscholars and iion’s Dynamic Partnership
The leading ad tech provider Adscholars has partnered with global gaming advertising leader iion. This collaboration aims to redefine the gaming advertising landscape in the Philippines amidst an industry boom, boasting a gamer population of 43 million, according to Newzoo. The partnership brings one-of-a-kind technology and programmatic-enabled gaming inventory solutions to the Philippine market. iion will scale immersive gaming solutions in this market, using Adscholars’ programmatic expertise. It will offer multiple activation options and unique experiences to connect with consumers on their preferred platforms.
The collaboration between Adscholars and iion arrives at a crucial juncture, as brands seek to reach the gaming audience in the Philippines. This partnership enables iion to utilize Adscholars’ market knowledge and brand collaborations, resulting in immersive and contextually fitting in-game, around the game and away from the game advertising encounters. iion’s immersiion is the first platform to connect game publishers and brands seamlessly across all digital worlds, providing a holistic targeting experience in-game, around the game, and beyond.
Gaming Boom in Philippine Market
Recent reports indicate that the Philippines is among the select group of five nations poised to emerge as a major gaming market within the Asia Pacific region. According to a comprehensive study conducted by Newzoo, a prominent provider of market intelligence within the gaming industry, the Philippines boasts a substantial gamer population of 43 million, with a projected growth rate of 14.3 percent spanning from 2020 to 2023. The growing popularity of online gaming in the country is driven by faster internet availability, more smartphone users, and the thriving eSports industry. The strategic partnership between Adscholars and iion places them at the forefront of innovative game advertising in the Philippines, ushering in a new era of industry growth amid the nation’s burgeoning gaming landscape.
Srikanth Rayaprolu, CEO of Adscholars said, “We are thrilled to announce our collaboration with iion, a prominent advertising platform that extends its reach across diverse gaming environments. As the gaming industry continues to flourish in the Philippines market, Ad Scholars, in partnership with iion Gaming, is set to provide brands with an exceptional opportunity to connect with gamers both within the gaming realm and in its periphery. This collaboration promises exciting creative possibilities that will actively engage your brand with this dynamic gaming audience.”
Yun Yip, iion’s Chief Commercial Officer says, “With AdScholars, we are poised to reshape the game advertising landscape in APAC. Our collaborative efforts and platform will empower brands and agencies to explore new ways of engaging with an ever growing audience, whilst delivering superior marketing outcomes in game advertising. A successful gaming strategy is a now possible, accessible and measurable”
Adscholars-iion Enters In A Dynamic Partnership To Transform Gaming In India
The leading ad tech provider Adscholars has partnered with global gaming advertising leader iion which aims to transform the gaming advertising landscape in India amidst an industry boom. The partnership brings one-of-a-kind technology and programmatic-enabled gaming inventory solutions to the Indian market. iion will scale immersive gaming solutions in this market, using Adscholars’ programmatic expertise. It will offer multiple activation options and unique experiences to connect with consumers on their preferred platforms.
This partnership enables iion to utilize Adscholars’ market knowledge and brand collaborations, resulting in immersive and contextually fitting in-game advertising encounters. iion’s immersiion is the first platform to connect game publishers and brands seamlessly across all digital worlds, providing a holistic targeting experience in-game, around the game, and beyond.
Leveling Up: The Online Gaming Boom Hits India
Statista reported India’s online gaming industry was valued at around INR 135 billion in 2022, up from 101 billion rupees the previous year. Projections indicated it could surpass INR 231 billion by 2025, with a robust annual growth rate of 19%. With a substantial youth population, India is poised to become a prime gaming market. With a significant youth population, India is poised to become a prime gaming market. The country’s market growth is propelled by the expansion of IT infrastructure, fueled by the increasing adoption of smartphones and high-speed internet.
Brands tap gaming’s audience engagement potential. Gameloft finds in-game ads boost brand awareness and likability. Messages over 15 seconds yield +23% purchase intent, highlighting gaming’s unique immersive impact. The strategic partnership between Adscholars and iion places them at the forefront of innovative monetization and advertising ushering in a new era of industry growth amid the nation’s burgeoning gaming landscape.
Srikanth Rayaprolu, CEO of Adscholars said, “We are delighted to announce a strategic collaboration with iion, a prominent advertising platform with a far-reaching presence in diverse gaming environments. As the gaming industry continues its rapid expansion within the Indian market, Ad Scholars, in partnership with iion Gaming, is primed to offer brands an exceptional opportunity to engage with gamers both within the gaming ecosystem and its surrounding landscape.
He further added, This partnership promises to open captivating creative avenues, actively connecting your brand with the vibrant gaming audience. Adscholars has been collaborating with brands and agencies in India. With this new partnership, we’re excited to introduce innovative gaming inventory options for our clients.”
Yun Yip, iion’s Chief Commercial Officer said, “With AdScholars, we are poised to reshape the game advertising landscape in APAC. Our collaborative efforts and platform will empower brands and agencies to explore new ways of engaging with an ever-growing audience, whilst delivering superior marketing outcomes in-game advertising. A successful gaming strategy is a now possible, accessible, and measurable”