Executives at Netflix are working to increase the revenue from its games feature, which is currently included for all subscribers at no extra cost, according to report by the Wall Street Journal.
Some of the potential plans for improved monetization include in-app purchases and microtransactions, a one-time fee for longer and more complex games, and access to games with ads in them for the lowest tier of subscription. Games currently come free with a subscription in an effort to keep users coming back in between show releases.
“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,” said Netflix Co-Chief Executive Greg Peters.
The proportion of subscribers that use the gaming feature is relatively small, with less than 1% of subscribers accessing it daily. Still, Netflix has committed to a long-term plan with the service.
In addition to developing their own titles, including an original AAA game and game based on their hit series Squid Game, the streaming giant has also acquired streaming rights to established games like Hades and Grand Theft Auto: The Trilogy.
Netflix has reportedly spent around $1 billion on its game program through buying studios and financing original games. That number is likely to increase as they enter the AAA sphere. The number of Netflix game downloads has significantly increased in the last year, but it nowhere near the popularity of other mobile publishers like Roblox and Activision.
This increase in costs, along with the relatively small player base, is cited as the main reason for the push towards monetization. In a previous Wall Street Journal report, it was said that an analyst from a major investor questioned the company’s focus on games, worrying that it would take away from their television and movie output.
In spite of that, Peters reaffirmed the streamer’s commitment to a gaming service. “We know we’re not going away…because someday we’re going to be everywhere with games across all devices that we serve.”