Video game venture could spark spending spree
After pumping billions of dollars into its global expansion program, Netflix (NFLX) has realized that it can’t rest yet—largely because Amazon.com (AMZN) isn’t giving it any peace. Amazon has been matching not only Netflix’s global expansion steps but also the production of original shows.
In what appears to be an attempt to try to stay ahead of the competition, Netflix has launched its first original video game, Infinite Runner. But is this another opportunity to spend billions of dollars or a way to generate more revenue? Netflix is certainly focused on the latter, but how accurately is it aiming?
The company hasn’t disclosed how much it cost to produce Infinite Runner. But if Netflix is looking at video games as a way to differentiate its video-streaming service, it could spark another spending spree in the company.
Could it be a promotional project?
Netflix could also insert original video games in small doses into its menu of movies as promotional pieces, especially as the company tries to attract young users and fend off competition from Amazon, DISH Network (DISH), AT&T (T), and Alphabet’s (GOOGL) YouTube.
Netflix’s Infinite Runner is modeled along the lines of the company’s most popular original shows. The game allows you to play a character in four of Netflix’s popular originals. While Infinite Runner may not be the most innovative video game on the market today, the theme is interesting. Once you’ve picked your favorite character and start running, you never stop running until your character dies.
Netflix plans to double its production of originals this year from last year’s quantity, and this should push its spending on content to $6 billion.