Netflix, Peloton, and Zoom Turn to Gaming. NewsWire

NewsWire: 8/12/21

• Soon you’ll be able to play games through Netflix, Peloton, and even Zoom. Gaming is becoming a key feature for digital-focused companies fighting for attention as in-person events resume. (Advertising Age)
• NH: A few weeks back, we wrote about the “attention recession.” As the world reopens, people don't have the same free time to endlessly consume media. (See “Winners and Losers of the ‘Attention Recession.’") But Netflix (NFLX), Peloton (PTON), and Zoom (ZM) have a plan to keep consumers engaged. It's called gamification.
• All three companies will begin offering video games for subscribers. Netflix will initially offer games on its mobile app. Zoom will offer the popular game “Heads Up!” through its chat feature. And Peloton will offer a rhythmic cycling game that will rank friends’ scores.
• As we have written in the past, the gaming industry is skyrocketing and showing no signs of slowing down. (See "Esports Continues to Skyrocket.") According to Newzoo, an esports market research firm, the number of global gamers is projected to grow from 2.69B in 2020 to 3.07B in 2023. That’s a +14% increase in just three years. While these tech companies offer very different services, they are all are hoping to jump on the bandwagon.

• The move to gaming also opens up the potential for new ad revenue. The games could feature traditional video advertisements. Or even product placements--recently, streaming services have leaned into product placement as subscription growth has slowed. (See “The Ads Are Coming to You.”) IMO, gaming could easily amp up engagement, recruit new paying customers, and boost ad income at the same time.