Is Netflix's Move Into Gaming a Sign Its Best Days Are Over?

Motley Fool2021-07-29

Netflix (NASDAQ:NFLX) gave investors a lot to chew on in its second-quarter earnings report. The company beat its own guidance for subscriber additions, but it disappointed with lower-than-expected ...

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Comments

EATDREAMLIVE
2021-07-29
EATDREAMLIVE
?
GuSen
2021-07-29
GuSen
Imagine hotels & hospitality sector adopting Netflix as their default room entertainment instead of some crappy movie channels such as HBO, AXN & Star Movies cos it is cheaper than the latter. This would bring a new meaning to ‘Staycation’ if gaming and entertainment combined, in light of all the travel restrictions.
- JCBL:
  yes, so there is still room for growth other than gaming...but gaming do carry more potential, just look at EA and Blizzard..so it might be a good move as a few hit titles can make tons of money..
AcidIce
2021-07-29
AcidIce
From movies to gaming, then later to gambling? The company just want crowds of fools to sign up with him, cheaply. It doesn't cost much to only host movies, doing nothing more than that. Netflix is another OVER Priced company that is worth LESS than it is!!
mark01bravz
2021-07-29
mark01bravz
With Netflix expansion into gaming, it will be a future behemoth that's for sure
tungleh
2021-07-29
tungleh
I am not in the preference to see how people play their games, haha... But I still like the movies n drama available in there. Hehe.
peng321
2021-07-29
peng321
With herd immunity and movement allowed, screen time will be reduce..everyone is looking forward to step out
- gunsonfire:
  Bye bye netflix. Just unsubscribed too

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The company beat its own guidance for subscriber additions, but it disappointed with lower-than-expected ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/28/is-netflixs-gaming-move-a-sign-best-days-are-over/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NFLX","symbol_name":"奈飞","start_time":0,"source_url":"https://www.fool.com/investing/2021/07/28/is-netflixs-gaming-move-a-sign-best-days-are-over/","article_id":"2154927641","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2154927641","pubTimestamp":1627530360,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"The company is dipping its toes into a new entertainment market as subscriber growth shows signs of slowing.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NFLX":"奈飞"},"translate_title":"Netflix,Inc.进军游戏是否标志着它最好的日子已经结束？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NFLX":0.9},"content_text":"Netflix (NASDAQ:NFLX) gave investors a lot to chew on in its second-quarter earnings report. The company beat its own guidance for subscriber additions, but it disappointed with lower-than-expected guidance for the third quarter. Management is guiding for 3.5 million paid subscriber additions in the current period, falling short of the 5.6 million analyst consensus. To top things off, Netflix also confirmed its plans to expand into video games.\nThe combination of weak guidance with the news of its entry into a new entertainment medium makes it seem the company is getting desperate for growth. But Netflix still has a long runway to expand, and this video game initiative makes sense for a few reasons.\nGrowth is slowing\nThere's no question that as Netflix becomes a larger business, its year-over-year subscriber growth will gradually slow. The company now serves over 209 million paid subscribers,. Before the pandemic, Netflix's year-over-year subscriber growth was gradually decelerating, falling from almost 26% at the end of 2018 to 20% the following year.\nStill, the long-term opportunity in streaming is massive. Despite a decade of growth, all streaming services still have less share of TV time than traditional linear TV. The latter has a 63% share of total U.S. TV time, according to Nielsen, while all streaming platforms have a 27% share. Netflix's share of TV time is even smaller at 7%.\nAs the company notes in its earnings report, \"We are still very much in the early days of the transition from linear to on-demand consumption of entertainment.\" And if Netflix can hit its third-quarter subscriber guidance (3.5 million net additions), it will have added enough subscribers over the last 24 months to maintain its pre-pandemic growth rate.\nSome investors might still wonder about increasing competition and the impact it could have on Netflix's ability to add new subscribers, but management believes if it can offer more content, growth should continue like it has for two decades.\nAnd that brings us to gaming.\nThe reason for games\nIn that context, gaming doesn't appear to be any more of a response to competition or slowing growth than Netflix's move into original content in 2012. Netflix says it is early in its expansion into games, but they will be included at no extra cost to members and featured primarily on mobile devices. It's basically another content category like animation and unscripted TV.\nThe company could emerge as a top developer on mobile platforms. It's going to focus on making games that don't require in-app purchases and ads, which run the risk of disrupting the gaming experience. In this way, Netflix could carve itself a unique position as a user-friendly platform that leads to increasing screen time among its members.\nIt doesn't need to worry about charging for these games, because higher screen time and engagement should eventually pay off in the form of higher subscription revenue per membership. In the last quarter, Netflix saw its average revenue per membership increase 8%. This follows a 5% increase in the previous quarter.\nThe entry into games also signals Netflix's improving profitability. It expects to reach free-cash-flow breakeven in 2021, and it no longer has a need to raise external financing to fund operations.\nWith its operating margin expected to reach 20% this year, the company can afford to invest in new opportunities without shortchanging itself on spending for original movies and series.\nLooking at the big picture, this push into gaming could be the first step for Netflix to graduate from a pure-play streaming stock to a more broad-based entertainment company. Expanding its umbrella of opportunities should spell a wider competitive moat and more returns for investors.","kind":null,"is_publish_news":false,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":808953613,"gmtCreate":1627552663232,"gmtModify":1703492215231,"author":{"id":"3581033492555297","authorId":"3581033492555297","name":"EATDREAMLIVE","avatar":"https://static.tigerbbs.com/ab1516a754e6381348be26c4af2c9598","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"?","listText":"?","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/808953613","repostId":2154927641,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":808998731,"gmtCreate":1627548941523,"gmtModify":1703492129827,"author":{"id":"3581847021927100","authorId":"3581847021927100","name":"GuSen","avatar":"https://static.tigerbbs.com/1b70044f21c62e929a7c4b5157b5a273","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"Imagine hotels &amp; hospitality sector adopting Netflix as their default&nbsp;room entertainment instead of some crappy movie channels such as HBO, AXN &amp; Star Movies cos it is cheaper than the latter. This would bring a&nbsp;new meaning to ‘Staycation’ if gaming and entertainment combined, in light of all the travel restrictions.","listText":"Imagine hotels &amp; hospitality sector adopting Netflix as their default&nbsp;room entertainment instead of some crappy movie channels such as HBO, AXN &amp; Star Movies cos it is cheaper than the latter. This would bring a&nbsp;new meaning to ‘Staycation’ if gaming and entertainment combined, in light of all the travel restrictions.","text":"Imagine hotels & hospitality sector adopting Netflix as their default room entertainment instead of some crappy movie channels such as HBO, AXN & Star Movies cos it is cheaper than the latter. This would bring a new meaning to ‘Staycation’ if gaming and entertainment combined, in light of all the travel restrictions.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/808998731","repostId":2154927641,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5367811,"gmtCreate":1627550819696,"gmtModify":1663231665945,"authorId":4087218051185710,"author":{"id":4087218051185710,"authorId":4087218051185710,"name":"JCBL","avatar":"https://static.tigerbbs.com/d52754657c86fcbf3892ea1fec33f39d","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":808998731,"type":1,"supId":0,"prevId":0,"content":"yes, so there is still room for growth other than gaming...but gaming do carry more potential, just look at EA and Blizzard..so it might be a good move as a few hit titles can make tons of money..","text":"yes, so there is still room for growth other than gaming...but gaming do carry more potential, just look at EA and Blizzard..so it might be a good move as a few hit titles can make tons of money..","html":"yes, so there is still room for growth other than gaming...but gaming do carry more potential, just look at EA and Blizzard..so it might be a good move as a few hit titles can make tons of money.."}],"langContent":"EN"},{"id":808904402,"gmtCreate":1627548500106,"gmtModify":1703492121579,"author":{"id":"3569382039983887","authorId":"3569382039983887","name":"AcidIce","avatar":"https://static.tigerbbs.com/25a5edd325094826cf6e8822874786ab","vip":1,"crmLevel":5,"crmLevelSwitch":1},"htmlText":"From movies to gaming, then later to gambling? The company just want crowds of fools to sign up with him, cheaply. It doesn't cost much to only host movies, doing nothing more than that. Netflix is another OVER Priced company that is worth LESS than it is!!","listText":"From movies to gaming, then later to gambling? The company just want crowds of fools to sign up with him, cheaply. It doesn't cost much to only host movies, doing nothing more than that. Netflix is another OVER Priced company that is worth LESS than it is!!","text":"From movies to gaming, then later to gambling? The company just want crowds of fools to sign up with him, cheaply. It doesn't cost much to only host movies, doing nothing more than that. Netflix is another OVER Priced company that is worth LESS than it is!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/808904402","repostId":2154927641,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":808063917,"gmtCreate":1627544965839,"gmtModify":1703492042025,"author":{"id":"3568769977321272","authorId":"3568769977321272","name":"mark01bravz","avatar":"https://static.tigerbbs.com/a5b7674da5bdda08c302399c7d276a6c","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"With Netflix expansion into gaming, it will be a future behemoth that's for sure","listText":"With Netflix expansion into gaming, it will be a future behemoth that's for sure","text":"With Netflix expansion into gaming, it will be a future behemoth that's for sure","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/808063917","repostId":2154927641,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":808085752,"gmtCreate":1627544569676,"gmtModify":1703492035844,"author":{"id":"3581840130059040","authorId":"3581840130059040","name":"tungleh","avatar":"https://static.itradeup.com/news/e7cd8f0c265e9dabe49dea7b97ffe6b9","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":2,"crmLevelSwitch":1},"htmlText":"I am not in the preference to see how people play their games, haha... But I still like the movies n drama available in there. Hehe.","listText":"I am not in the preference to see how people play their games, haha... But I still like the movies n drama available in there. Hehe.","text":"I am not in the preference to see how people play their games, haha... But I still like the movies n drama available in there. Hehe.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":14,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/808085752","repostId":2154927641,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":808039979,"gmtCreate":1627541757591,"gmtModify":1703491995161,"author":{"id":"4087387556186030","authorId":"4087387556186030","name":"peng321","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":1},"htmlText":"With herd immunity and movement allowed, screen time will be reduce..everyone is looking forward to step out","listText":"With herd immunity and movement allowed, screen time will be reduce..everyone is looking forward to step out","text":"With herd immunity and movement allowed, screen time will be reduce..everyone is looking forward to step out","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/808039979","repostId":2154927641,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5366687,"gmtCreate":1627542245324,"gmtModify":1663231662140,"authorId":3582251522172350,"author":{"id":3582251522172350,"authorId":3582251522172350,"name":"gunsonfire","avatar":"https://static.tigerbbs.com/6b74c7a33fa03de37c4879761460f702","vip":1,"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":808039979,"type":1,"supId":0,"prevId":0,"content":"Bye bye netflix. Just unsubscribed too","text":"Bye bye netflix. Just unsubscribed too","html":"Bye bye netflix. Just unsubscribed too"}],"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":292,"commentSize":31,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2154927641"}