Netflix and Ubisoft Form Strategic Partnership to Grow Game Selection



Netflix (NASDAQ:NFLX) has announced that it has partnered with Ubisoft to create three original mobile games for its subscribers. In 2023, you can purchase video games based on the Valiant Hearts, Mighty Quest, and Assassin’s Creed series. There won’t be any in-game purchases or advertisements in the games.

Netflix’s continued investment in video games is part of a broader strategy to increase user retention and subscriptions in the face of intensifying competition in the streaming industry. Disney (DIS), Comcast (CMCSA), and Paramount Global (PARA) all provide strong alternatives to Netflix.

Netflix (NASDAQ:NFLX) has tough competition in the streaming arena from services like Disney+, Amazon Prime Video, Apple TV+, HBO Max, Peacock, Paramount+, and TikTok. Profitability is also likely to be impacted negatively by factors such as account sharing, a sluggish economy, multi-decade high inflation, and the conflict between Russia and Ukraine.

Compared to its forecasted loss of two million customers, Netflix’s 0.97 million global paid subscriber loss in Q2 2022 was less severe. It gained 1.54 million paying customers in the same period last year. Present projections put the number of paying customers at one million by the end of the third quarter of 2022.

Will Netflix’s Shares Benefit from the Company’s New Ad-Tier and Strong Game Content?

Netflix (NASDAQ:NFLX) shares are down 61.2% year-to-date, significantly worse than the 31.8% decline of the Zacks Consumer Discretionary industry.

In June, Netflix (NASDAQ:NFLX) announced its plans to provide a free, ad-supported tier to attract a wider audience. As part of an effort to make Netflix more affordable, the new tier will be less expensive than the current ad-free service.

Two of Snap’s top executives have recently been hired by Netflix to assist in expanding the company’s advertising operations. Microsoft is now the company’s official partner in technology and advertising sales.

However, Netflix (NASDAQ:NFLX) will likely encounter challenging rivals in the ad-supported streaming market. On December 8th, 2022, Disney+ will launch its ad-supported tier. To increase the commercial inventory it sells via connected TV, the company has reached out to affiliates and signed a new agreement with the ad-tech company, The Trade Desk.

Nonetheless, Netflix (NASDAQ:NFLX) is anticipated to maintain its dominant position in the streaming space thanks to its diverse content portfolio, resulting from the company’s significant investments in the production and distribution of localized, foreign-language content.

Netflix (NASDAQ:NFLX) has just released the game Lucky Luna and announced several others, such as IMMORTALITY, Wild Things: Animal Adventures, Rival Pirates, and more.

Netflix (NASDAQ:NFLX) has also been acquiring smaller companies in the gaming industry to increase its overall presence there. The company has acquired multiple studios since launching the gaming initiative in November 2021, including Next Games of Finland, Boss Fight Entertainment of Texas, and Night School Studio, creators of the supernatural mystery adventure Oxenfree.

Featured Image – Megapixl © Twindesign

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.