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Netflix Lags in Subscriber Growth, Looks to Gaming

  • Netflix’s Q2 earnings showed slower than usual subscriber growth.
  • The company plans to produce video games next year.
Netflix/Design: Alex Brooks

Netflix has become the industry standard in streaming, but its second-quarter earnings saw the giant slow down to catch its breath. 

The California-based company added 1.5 million net new subscribers in Q2 — its lowest quarterly showing to date.

The pandemic may be partly to blame for shutting down production on many of its original shows, and the rise of services like Disney+ and HBO Max has cut into its market dominance.

  • Netflix posted $7.34 billion in Q2 revenue, a 19.4% year-over-year increase.
  • The company said it expects to add 3.5 million subscribers in Q3, down from initial estimates of 5.5 million. 
  • Shares fell 4% in after-hours trading.

In an effort to find new subscribers, Netflix is looking to a new source: gamers. The company wrote in its letter to shareholders, “We view gaming as another new content category for us, similar to our expansion into original films, animation, and unscripted TV.”

The company added that games would be included in members’ subscriptions at no extra cost, and that it would initially focus on mobile games. It plans to publish its first games in 2022.

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