Netflix Eyes New Monetization Models for Its Gaming Service – What Could This Mean?

Netflix has rapidly expanded its gaming library with currently over 80 titles available to play.

This features not only big indie hits like Slayaway Camp but also the AAA title GTA Trilogy. 

Now, Netflix is reportedly exploring ways to generate additional revenue from its games through advertisements, in-app purchases, and more. 

What could this shift mean for the streaming giant?

Potential Models Under Consideration

According to The Wall Street Journal, Netflix executives have discussed various monetization options:

• Ads – Integrating ads into its free-to-play mobile games, similar to other mobile titles.
• Premium Titles – Charging for high-profile games like indie darling Hades.
• In-App Purchases – Offering microtransactions for power-ups and cosmetics, as seen in popular free games like Fortnite.

This marks a change from Netflix’s previous stance of avoiding in-game monetization. 

The company likely sees an opportunity to enhance engagement and revenues.

Related: Xbox also working on an ads model for cloud gaming

Early Traction for Netflix Games

In 2023, Netflix games were downloaded over 80 million times globally. 

While modest compared to the top mobile games, it does indicate growing adoption. 

With hot new titles continuing to launch in 2024, Netflix is poised to attract more gamers.

Additional monetization could incentivize users to revisit the gaming service more frequently.

Features like exclusive power-ups through in-app purchases or bonus content in ad-supported games may drive higher retention.

What This Means for Gamers

For gamers, Netflix’s monetization models could bring some trade-offs:

• More ads and in-app offers could clutter gameplay.
• Extra costs for premium games are not included with a Netflix subscription.
• Exclusive content locked behind purchases rather than skill.

However, on the positive side:

• Extra revenue can fund bigger gaming investments and titles.
• Lower the need to raise subscription costs.
• Support ongoing development of the service.

As with most shifts in gaming, player reaction will dictate if Netflix’s money-making experiments pay off in the long run. 

But the plan shows they aim to be a serious contender in interactive entertainment.