Is Candy Crush, Fortnite Next On Netflix? Streaming Giant Could Crack Open Popular Titles Following GTA
Portfolio Pulse from Ananya Gairola
Netflix Inc. (NASDAQ:NFLX) is exploring the expansion of its gaming portfolio following the success of Grand Theft Auto Trilogy on its platform. Co-CEO Greg Peters highlighted the game's high download and engagement numbers, which surpassed expectations and led to a threefold increase in game engagement over the past year. Netflix sees a $140 billion consumer spend opportunity in gaming, excluding China and Russia. The company plans to continue investing in gaming, with a focus on licensing existing games, some with exclusivity, as part of its strategy. Peters mentioned the possibility of adding popular titles like Candy Crush or Fortnite. Netflix also discussed a crackdown on password sharing, which has increased engagement and new user sign-ups, and its venture into sports entertainment through a partnership with WWE.
January 24, 2024 | 7:34 am
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Netflix's successful gaming venture with Grand Theft Auto Trilogy and plans for further expansion into popular gaming titles like Candy Crush and Fortnite indicate a strategic move to capture a significant consumer spend opportunity in the gaming industry. The crackdown on password sharing and the partnership with WWE also suggest a broader diversification strategy.
The positive reception of Netflix's gaming content and the company's commitment to expanding its gaming portfolio are likely to be viewed favorably by investors. The crackdown on password sharing, which has led to increased user sign-ups, and the strategic partnership with WWE are additional factors that could contribute to a positive short-term impact on NFLX's stock price.
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