The Best Metaverse Stock is Netflix
Gen-Z ranks video games as their favorite entertainment activity and Netflix is listening.
The Pivot to Gaming
It was recently announced the streaming video king, Netflix, will enter the gaming industry by announcing its first five mobile games. A Bloomberg article does an excellent job explaining why Netflix wants to expand into gaming. “For years, Netflix has been publicly concerned about how gaming is taking precious screen time away from video content. According to a Deloitte survey, Generation Z ranked playing video games as their favorite entertainment activity--way above music, social media, and television.” The gaming market is estimated to be worth over a trillion dollars by 2030.
Netflix ALWAYS Adapts
Unlike the countless number of companies that collapse when the industry shifts, Netflix has proven itself to be an adaptable company that smiles when change arises. The streaming giant has successfully responded to four giant transitions in the entertainment and business environment: from DVD by mail to streaming old television series and movies over the internet, from streaming old content to launching new original content produced by external studios, from licensing content provided by external studios to building their own in-house studio, from a U.S only company to a global company, and now gaming can be added to that list. Netflix says their games will have no ads, no additional fees, and no in-app purchases.
Beyond gaming, Netflix has shown interest in creating more interactive content. Netflix calls the technology “state tracking,” which logs the choices viewers make as they watch an interactive show, like Black Mirror: Bandersnatch and Bear Grylls: You vs. Wild.
A Netflix Metaverse?
It will be interesting to see how Netflix combines its interactive technologies and gaming endeavors into virtual reality experiences. Netflix hired Mike Verdu, who worked for EA Sports and Meta’s Oculus Divison, becoming known for his gaming innovations. They’ve announced a partnership with producer Shonda Rhimes whose show Bridgerton has become one of the company’s most-watched series ever. The Rhimes partnership includes the opportunity to produce and distribute potential gaming and VR content exclusively.
It’s evident Netflix is interested in becoming a dominant force in VR and gaming. Netflix has an extensive list of intellectual properties that could be used in its own Metaverse.