Netflix Reportedly Considering Adding In-App Purchases and Ads to Its Games

It's no secret that Netflix's attempt to break into the video game industry has been something of a mess. The streaming giant started to include video games "free" as part of all subscriptions back in late 2021, but a slim number of subscribers have spent any meaningful time with these games. According to a new report from The Wall Street Journal, Netflix is looking for ways to start making money off its video games, and is considering options that include ads, in-app purchases, and even charging extra for some of the service's more appealing titles. 

Removing the Positives

The inclusion of in-app purchases would mark a major shift for Netflix Games. Video games offered on the platform are basically separate mobile apps that can be downloaded for free by the subscriber. In many cases, these mobile games are slightly modified versions of existing games that can be found on the App Store or Google Play Store; for example, Sonic Prime Dash is the same game as Sonic Dash, but with all of the in-app purchases removed and all of the characters from Sonic Prime unlocked from the start. Adding back in-app purchases would get rid of one of the incentives to download these games through Netflix in the first place! 

It should be noted that Netflix has not settled on any of these options, as of this writing. Instead, the company is encouraging "open debate internally" about ways to start turning a profit off the video games division. Clearly video games haven't been the success Netflix has hoped for, though the company has seen some growth; according to numbers from Sensor Tower, Netflix video games were downloaded 81.2 million times in 2023, up from 28.7 million downloads the previous year. That's a big jump, and the report from The Wall Street Journal indicates that the company sees video games as a "long-term bet." 

Why Netflix's Video Games are Struggling

One of the biggest problems with Netflix's video game options is that the company has no "killer app" to draw in users. While the service does offer access to a number of critically-acclaimed games, many of them can already be found on multiple platforms, including titles like Teenage Mutant Ninja Turtles: Shredder's Revenge and Grand Theft Auto: Vice City. The majority of Netflix-exclusive games include smaller titles like Slayaway Camp II: Netflix & Kill, or ones connected to existing Netflix shows, such as Stranger Things: Puzzle Tales. However, the company has been investing in bigger exclusives, and there is a desire to start offering what the Wall Street Journal describes as "console-quality games." 

Another reason that Netflix's video games have struggled to find mass appeal is the fact that they can only be played on mobile devices. The company began beta testing games on other devices last year, with users in Canada and the UK given the option to play Netflix games on TVs and PCs. That could go a long way towards attracting more users, should that option be offered to everyone. For now, Netflix subscribers in other territories will just have to enjoy these games in their current format. 

Do you play any Netflix video games? Would in-app purchases and advertising make these games less appealing to you? Share your thoughts with me directly on Twitter at @Marcdachamp or on Instagram at @Dachampgaming!