Netflix is ​​revamping its gaming strategy to win more users. Does it work?

Inside an office in Hollywood, not far from the Walk of Fame and Sunset Bronson Studios, Netflix CEO Alain Tascan revealed new content that will soon be available on the platform — but it’s not a TV show or a movie. It’s a new game in which American viewers compete to win thousands of dollars.

The game show, called “Best Guess Live,” will air weekdays at 5pm PT, where hosts Howie Mandel and Hunter March will reveal a set of five clues. Mobile game players chime in to make their best guesses. The earlier they can guess correctly using fewer clues, the greater their chances of winning more prize money. The show, filmed in Van Nuys, is Netflix’s attempt at dating games for its audience of more than 700 million viewers.

“Can you imagine a place where you can not only go and play a game, but you can also win a life-changing amount of money every day, and it doesn’t take time, it’s easy, and all you have to do is your phone?” said Mandel, who is widely known for hosting NBC’s “Deal or No Deal” and “America’s Got Talent.”

The goal is to make playing games on Netflix “as simple as streaming a movie on a Friday, using the same innovative mindset that led Netflix to transform itself from a company that shipped DVDs to streaming movies, shows, and now games,” Taskan said.

Netflix has invested in its gaming sector over the past four years, with mixed results. Last month, the streaming company’s co-CEO, Greg Peters, gave the company’s gaming efforts a B-. Under Taskan’s leadership, the division has focused on a few key areas, including narratives based on Netflix shows, children’s games, social party games, and mainstream titles like “Grand Theft Auto.”

The changes seem to be working. The number of downloads of Netflix games rose 17% to 74.8 million from January to October this year compared to the same period in 2024, according to data from app analytics firm Appfigures. The company is also launching fewer games, adding 16 titles this year compared to 35 games last year, Appfigures said.

Netflix declined to comment on Appfigures data.

The company also removed games in part due to decreased customer engagement. Netflix has released 142 games, 78 of which are still active as of October, according to Appfigures.

Its two most popular mobile games have been released on Netflix in the past two years, including “Grand Theft Auto: San Andreas,” which appeared on the platform in December 2023 and achieved 44 million downloads. The streamer released an original multiplayer titled “Squid Game: Unleashed” last year with 21 million downloads. The game was related to the second season of the popular series where players could earn cash or wild tokens in the game if they watched a certain number of episodes.

Some analysts say there is still room for improvement.

Journalists participate in a demo of the games at the Netflix office on Wednesday.

(Netflix)

“It still seems a bit experimental,” said Ross Bennis, senior analyst at research firm eMarketer. “I don’t get the impression that they’re on the gamer’s list of favorite sources of entertainment.”

Netflix on Thursday announced its first slate of five games for TV, including Tetris Time Warp, Boggle Party, Pictionary: Game Night, and LEGO Party! Available now. Before the new menu, subscribers could only play Netflix games on their mobile devices.

When consumers download TV games, they will see a QR code that they can scan on their devices and use as game controllers. For example, in Netflix’s version of Pictionary, users draw on their phones.

“The big shift in strategy is making sure we remove any friction that someone might have when they want to play,” Taskan said in an interview. “We believe that television, in particular, where people enjoy different shows, is the best place to offer something that is more accessible.”

The TV games are the latest iteration of Netflix’s efforts that began four years ago. The company has bolstered its staff after acquiring four gaming companies — Glendale-based Night School, Allen, Texas-based Boss Fight Entertainment, Finland-based Next Games, and Seattle-based Spry Fox.

Netflix shut down Boss Fight Entertainment last month.

The gaming division’s efforts were initially led by Mike Verdoux, a former Facebook and Electronic Arts executive. He later moved to a role focused on transforming game development and player experiences with generative AI in November 2024 and left Netflix earlier this year. Taskan, a former Epic Games executive, will be named head of gaming at Netflix in July 2024.

Gaming has been an attractive area of ​​investment for some companies, with a younger audience spending a lot of time playing games like Roblox, Fortnite and Call of Duty. Taskan estimates there are 3 billion gamers in the world, and with Netflix having an audience of more than 700 million people, “the Venn diagram is pretty big.”

The streamer on Thursday also announced new mobile games for kids, including the “Barbie Color Creations” digital coloring book and the “Toca Boca Hair Salon 4” hair styling game.

It can be difficult for companies to enter this field. For example, in 2023, Google shut down its gaming service Stadia after it failed to attract users.

Taskan said Netflix is ​​not competing with traditional gaming consoles but is looking to innovate and find new ways to reach its customers.

Taskan said he was encouraged by the reactions he saw.

“It’s a step in the right direction,” he added. “But in the end, how many people are going to have the same reaction? We’re a data-driven company, and our key data is, how many people are going to engage?”

Taskan said he thinks it will take a few years before Netflix becomes the Netflix of gaming. He hopes the department improves from Peters’ B- grade to a higher level.

“What I’m hoping is that by the end of the year, we will upgrade to an A grade, hopefully an A+ grade,” Taskan said.

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