Subscription gaming has yet to hit critical mass – but it could be one of gaming’s next big disruptors. Take a deep dive into Netflix’s approach to games and advertising. Plus, get a breakdown of the growth strategies used by today’s biggest gaming companies.
Joshua Spertell, VP Product & Growth at Carbonated Inc. – and creator / writer of Stoic Musings – joins us to share his insights. With more than a decade of experience in equities trading and mobile gaming, Josh leverages growth strategies, product development, and data analytics to drive business results. His career combines investment insight, technological innovation, and a sharp understanding of market dynamics.
Together with Josh and our hosts, learn more about Netflix’s expansion into gaming, their conservative approach, and their growth as an ad network. Get a hard look at the difference between those engaging in passive (TV) activities vs. active (gaming) activities and the different approaches needed for both. Understand Netflix’s potential as an ad network and the challenges they face with integrating ads into their platform.
Finally, we shift focus to the (evolving?) growth strategies of Electronic Arts and Microsoft. Learn about EA’s reliance on live services and sports franchises and Microsoft’s shift from a hardware-focused strategy to a content-focused one.
Takeaways
- Netflix is taking a conservative approach to gaming, focusing on high-margin, high-ROI opportunities.
- The adoption of gaming on streaming platforms has been slow due to the difference in consumer intent.
- Netflix is doubling down on becoming an ad network and growing their ads business.
- The expansion into gaming and ads presents opportunities for Netflix to diversify their monetization and reach new audiences.
- Netflix has the potential to enter the advertising space by leveraging personalization, unique inventory, and data for targeting.
- EA’s growth strategy revolves around live services and their sports franchises, such as Madden, which have driven slow, steady growth.
- Microsoft’s acquisition of Activision-Blizzard indicates a strategic expansion of their gaming portfolio to reach more gamers on more platforms.
- Microsoft’s shift from a hardware-focused strategy to a content-focused one reflects the changing dynamics of the gaming industry.
- Subscription services like Game Pass offer a way to expand distribution and monetization, but it also risks flattening the LTV curve.
Podcast Chapters
- 00:00 – Opening remarks and introduction
- 04:15 – Netflix and subscription-based gaming
- 11:02 – Netflix: Advertising king in the making?
- 17:25 – Electronic Arts’ steady growth strategy
- 21:02 – Microsoft’s new content-first growth strategy
- 30:59 – Closing remarks and sponsor message
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