This past summer, Netflix announced plans to offer gaming on its streaming platform. In early November, the first live games launched on Android. The games are included alongside the streaming service’s movies and TV offerings and bundled within the same monthly price. Netflix hired a gaming executive with experience at Zynga and Electronic Arts to lead the effort.
Gaming Isn’t Netflix’s Best Opportunity for Growth
They should consider these three ideas instead.
November 05, 2021
HBR Staff/Tetiana Lazunova/Getty Images
Summary.
Netflix is planning to launch video games as part of its existing subscriber offer. This is an example of an adjacency strategy, but in this case it’s not the smartest play. Growing into adjacent markets makes the most sense when it allows a company to cross-sell or create an entirely new kind of revenue-generating business. Neither is true in this case. The article offers three alternative strategies that Netflix could use to move into adjacent markets that fit better with its core business and are more likely to help it grow revenue.