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We know by now Netflix was a big player in changing the game with home entertainment by making content accessible anytime, anywhere. However, as the streaming market has become saturated, platforms are facing stagnation in subscriber growth, contributing to new business models. While Netflix continues to dominate in Q1 2025, it is fixated on maintaining a competitive edge, and gaming is one way to do it.
Consumers today are not only just looking for more than passive viewing jumping from streaming app to streaming app, they still want to be surprised and want interactive immersive experiences.
With casual gaming in general on the rise and accounting for over 50% of all gaming revenue in 2023 (Newzoo, 2024), Netflix has spotted an opportunity to redefine engagement by also integrating gaming into its TV experience. The transition from a content-only service to an interactive platform presents both a challenge and an opportunity. With early TV beta tests underway (which is getting a workout in the New Zealand Accedo Office), Netflix is exploring how gaming can enhance user retention, increase screen time, and establish itself as an all-encompassing entertainment hub.
But with the well established giants like Xbox Cloud Gaming and PlayStation Plus already in the market, can Netflix’s approach make a lasting impact on the big screen?
I think it can, note my optimistic perspective in full swing while writing this article.
Netflix had already dipped its toes into the gaming market in 2021, adding some simple games to its mobile app for free. In 2022, they built a new game studio called Team Blue to make big, high-quality games, hiring top people from famous game companies like Blizzard and Sony. Today, Netflix has over 100 games and is working on 80 more, but it’s not clear if they’ll ever go back to making big, AAA games. But it is taking a bigger step in bringing games to TVs, leveraging your smartphone and creating a frictionless, remote/controller-free gaming experience. This model aims to reach a wider audience by eliminating the need for expensive hardware while tapping into Netflix’s existing subscriber base.
Netflix's recent play into gaming through its TV app offers a unique blend of nostalgia and innovation. The platform's integration of storytelling games at this moment reminds me when I was playing with the classic Nintendo Gameboy, and brings another dimension to their subscription service. This approach is especially appealing to users who enjoy quick, interactive gameplay without the need for a dedicated console.
This strategic shift is particularly appealing to users with short attention spans and those looking for budget-friendly gaming alternatives. With low latency input between mobile controllers and TV screens, the groundwork is being laid for more complex RPGs and interactive content. While the slight input lag remains, it is minimal, making the experience smoother than expected.
But let's look at what Netflix is trying to solve, traditional gaming on TV platforms has often been limited by hardware constraints and user engagement issues. Many native devices like Panasonic and Sony have struggled to capture the gaming market, primarily due to the lack of engaging content and less than intuitive controls of the classic remote. Netflix, however, addresses this by leveraging the familiarity of mobile devices as controllers, bridging the gap between traditional and interactive media.
They do this by nailing these 3 areas:
I guess you're thinking, what does the control device feel like? Is it easy to use? Unlike current TV gaming, where remotes are perceived as clunky, using a mobile phone as a controller capitalises on user familiarity with touchscreen games. This approach is particularly effective for younger generations who are accustomed to gaming on mobile devices.
Additionally, simplified controls up, down, left, right, and basic action buttons mirror traditional controllers while avoiding complexity. This user-friendly interface could make Netflix’s gaming offering more appealing to casual players and also older generations.
Netflix's notification and tooltip system upon launching the app was a great guide for first-time users. The promotional video explaining the feature on the main games page also helped my onboarding.
Additionally, The user journey, from scanning the QR code to downloading the supporting application, is refreshingly simple with limited steps. Netflix's approach removes common friction points, such as logging into external apps, making the process feel effortless.
It's not like the experience you get when you arrive at your seat on an airplane and have to grab that chunky controller to play games on your screen, it's a lot easier.
As part of its beta rollout experience, Netflix has introduced a seamless way to play games on TV:
Thinking about it, Netflix’s TV gaming BETA really feels like a throwback (for now), like the kind of storytelling and simple mechanics we had on the Nintendo Gameboy and PlayStation 1, do you still remember the noise Playstation 1 made when you first started it up? It’s that casual, story-driven gaming we used to have, now made super accessible without needing expensive gear. It’s a smart move, pulling in a wide age range, from 10 to 50-year-olds, but it makes me wonder…how quickly is Netflix going to speed through gaming history? In a few months, maybe a year, will we be jumping ahead decades in what’s playable.
If a classic like Pokémon Blue were available on the Netflix TV experience, I could easily see myself spending a few hours over the weekend hogging the tv.
Netflix’s move into gaming was a long-term strategic shift aimed at deepening user engagement and expanding their content ecosystem. In their FINAL-Q2-21-Shareholder-Letter, they made their intentions clear:
"We view gaming as another new content category for us, similar to our expansion into original films, animation, and unscripted TV."
By integrating gaming within subscriptions at no extra cost, Netflix signaled that this wasn’t just an experiment, it was a core part of their evolving entertainment strategy.
“Since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games.”
Netflix’s future in offering gaming depends on how well it can deliver a seamless, enjoyable experience while maintaining its core identity as a streaming powerhouse, and of course, if its audience is ready to have this as part of their subscription experience.
“We compete with (and lose to) Fortnite more than HBO […] Our growth is based on how good our experience is, compared to all the other screen time experiences from which consumers choose. Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members.”
They have even hinted at introducing multiplayer and co-op gaming experiences, positioning itself as a social gaming hub, similar to platforms like Xbox Live, Steam and Apple Arcade. The potential for party-based gaming is a great idea to allow multiple users to join the same game, a new form of community-driven entertainment supported by rich movie or series content. They state -"While we started in mobile, our goal is to make our games accessible on all device types over time and in 2025 we'll continue to test and expand our offering of cloud games on TV." I think focused gaming for Netflix originals on the big screen could be the next logical step.
All this also presents opportunities for indie developers, as cloud gaming gains traction, smaller studios could leverage Netflix’s ecosystem to distribute games to a broad audience without needing to release titles on traditional gaming platforms. However, managing this as a streaming product owner may have its own challenges, particularly when developing for a mobile controller experience.
But what does this move mean for everyone else out there with their own streaming applications? Does this fit into your strategy or your roadmap? What else could come out of this external controller device?
Well for one, imagine ad-supported gameplay where players watch a short ad before launching a game, similar to mobile free-to-play models. This could make lower-tier subscriptions more appealing by providing gaming as a value-add while keeping costs down.
Also thinking and tiers as it's relevant right now, premium tiers could offer exclusive access to more complex games, much like how streaming apps now differentiate content between plans. Limited-time exclusives or early access to new games could become part of the premium experience, rewarding higher-tier subscribers with unique perks.
Gaming has long been a proving ground for microtransactions, from cosmetic upgrades to battle passes seen in Fortnight or Marvel Rivals, you can find out how Gen Z’s are driving this by checking out our Gen Z report. While Netflix hasn’t indicated plans to introduce these mechanics, it’s not hard to imagine a future where optional in-game purchases exist within their platform. For instance, Netflix Originals could expand into the gaming space with interactive tie-ins, allowing players to unlock special skins, alternate storylines, or premium in-game content related to their favorite shows. Picture a Stranger Things RPG where players can buy character outfits inspired by different seasons or Squid Game challenges where users can unlock new difficulty modes or customisation options.
If Netflix or other streaming services takes its gaming ambitions seriously, it could evolve beyond just offering games as part of a subscription, and this also relates to sports streaming too, where NFL is already doing a reskinned version of live games over at Disney+. A digital storefront within apps could allow users to purchase standalone games, much like Apple Arcade or Google Play Pass.
This wouldn’t necessarily mean Netflix becomes a full-fledged game publisher, which I don't think would be the best strategic direction, but it could leverage its vast audience to offer select premium games for purchase. Think about interactive experiences that go beyond casual gaming, larger scale story driven games, exclusive licensed content, or even partnerships with indie developers to distribute games directly to Netflix’s audience.
Back in the day, every major movie had a game Lord of the Rings, Harry Potter, Spider-Man. Then, there was a lull, where movie-led games took a backseat. Now attention to this is turning, but in reverse games are becoming shows and films. With Netflix diving into gaming, it’s not just a comeback, it’s a full-circle shift in how audiences engage with stories.
So, are we about to see a hybrid model where shows and games launch side by side, feeding into each other? Imagine watching a movie or series, then jumping straight into a playable episode or RPG expansion with no extra downloads, no new logins, just straight into the world. By leveraging its existing subscriber base and eliminating hardware barriers, it has the potential to carve out a unique space in the gaming industry. However, success will depend on execution, quality, engagement, and seamless integration into the broader Netflix experience.
This also may inspire other competitors such as Paramount+ and Amazon Prime to explore similar integrations on the big screen. The real innovation isn’t just gaming, it’s how to make it accessible. Instead of requiring a console or controller, turn the phone into the controller.
For smaller streaming platforms, games are only part of the pictures. It’s about rethinking user interaction without adding costly hardware or complex development, I ask the question:
Not every platform needs to follow Netflix’s lead, but the idea of a second screen engagement has potential. If you’re thinking about how this could fit into your roadmap efficiently, let’s chat.
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