Introduction
Netflix is a media services provider based in the United States, allowing subscribers to watch thousands of TV shows and movies on demand on several Internet-connected devices. The service distributes the original and acquired films from different genres via services provided internationally in different languages. Netflix is an entertainment service company. TV shows and movies like original series, documentaries, and feature films are available in the subscription for TV, computer, and mobile devices (Mier & Kohli, 2021). It also provides plenty of leisure activities, such as video games or other forms of entertainment. Netflix is given the right to use, purchase, or produce its content, which includes original programming. The enterprise uses marketing partners at multi-channel video programming distributors and internet service providers for its promotion and marketing. It covers American, European, Middle Eastern, African, and Atlantic regions. Netflix’s headquarters is in Los Gatos, California (US).
How it fits
The rise of Cloud Gaming in Netflix’s plan and mission is to expand its entertainment selection. Similar to its mission, Netflix attempts to offer the world’s best series, documentaries, feature films, and also games. With Cloud Gaming, Netflix creates the opportunity to enlarge the number of subscribers and involves them with various content. For the VOD platform, this means facilitating the need to provide different entertainment choices to a global audience. The strategic plan and mission will be well promoted to utilize the plan effectively. The firm grew remarkably by providing and being a demand for streaming online platforms. On the contrary, they better offer a variety of choices when it comes to entertainment, such as documentaries, programs, feature films, and classic movies, which are in any genre.
Netflix strives to deliver its promise of impacting society and, at the same time, delighting it. The eco-friendly company’s objectives indicate that the company will be an active part of common welfare, market, and environment conservation. The entertainment company gives subscribers a wide assortment of authentic films, which are submerged deeply in the single membership, besides being one of the few streaming platforms that does not include any ads on its interface (Mier & Kohli, 2021). The content leader focuses on providing the public with top-notch programming through top-notch application support and an interface tailored to kids. Netflix surfaced that the company offers programs according to the target audience segment. It (historical museums) is a process of caring for materials and providing a variety of subjects to diverse age groups and thousands of people.
Additionally, its subscription charges, which it charges to access its stream platform, ensure that its services meet the needed standards. Leaning on past modules” research, Netflix has an advantage in investing in Cloud Gaming, which means they have the financial capabilities (Mier & Kohli, 2021). The company can effortlessly develop and debut new services with a subscription-based business model and a broad customer base. Also, the experience that Netflix has in producing and delivering digital content can open up gates for the company to the gaming industry. Although Netflix might face some obstacles when entering the gaming industry, which is already full of well-established popular platforms, its history of innovation and customer satisfaction reveals that it will likely succeed in this upcoming venture.
Justification
The video game sector has demonstrated its tendency to grow rapidly in the past few years, and there is no surprise that it is one of the most profitable businesses globally. Though you might question whether the gaming industry is earning more than other entertainment industries, the truth is that the industry is indeed making more money than other industries. Numbers show that, for the current time, the gaming industry has a total revenue of more than movies and music. A report by Super Data Research reveals that the size of the global gaming market is already significant, about $159.3 billion in 2020. Netflix has also noticed that the industry has huge potential to grow. We can consider the revenue from the music industry to be $19.1 billion in 2020 and the film industry to be $41.7 billion (Netflix, Inc. 2022). In 2023, the cloud gaming industry is projected to hit $4.3 billion, representing a 62% Earnings growth over 2022 when revenue was $2.6 billion.
In addition, External parties and senior management could expect to realize a diverse array of benefits on the part of the venture being developed by Netflix due to possible improvements in program revenues and user base. By providing a unique and appealing interactive model, Netflix can invite more users and make its existing ones stay, increasing profit from higher subscription fees (Netflix, Inc., 2022). Also, since the gaming industry become more and more recognizable day by day, entering into the gaming industry presents an opportunity to find another income flow for the company. As long as the company can finely plan, reach the right partners, and use the right marketing strategy, Netflix’s Cloud Gaming has big potential to get a good ROI for investors and senior management.
Enhancing the mission
The Cloud Gaming operation supplements Netflix to meet its ultimate goal because it gives another entertainment option, which makes more people choose the platform as the premium content provider. Netflix can present itself to gamers as a TV series, documentaries, and films provider and as someone who likes to play games. In this way, it can attract and retain a wider audience, fulfilling its mission of entertaining the world (Netflix, Inc., 2022). Also, cloud gaming could help the company surge in subscribers and revenues and, ultimately, the long-term profitability of the company if it continues to focus on expanding its offerings and reaching untapped markets. The company’s 10K annual report explicitly illustrated that Netflix had a positive linear progression of income and the number of subscribers (Netflix, Inc., 2022). On the other hand, this indicates that the company has a stable foundation and customers who will be very active in Cloud Gaming.
References
Mier, J., & Kohli, A. K. (2021). Netflix: reinvention across multiple periods, reflections, and directions for future research. AMS Review, 11, 194-205.
Netflix, I. (2022). United States Securities and Exchange Commission.http://pdf.secdatabase.com/2428/0001065280-23-000035.pdf
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