Netflix has launched a new video-gaming strategy in an effort to broaden its appeal.
The gaming craze is expected to persist longer than the pandemic.
NFLX (NASDAQ:NFLX) rose on Wednesday and is expected to hit new highs on Thursday.
While Netflix and chilling out are enjoyable throughout the summer, as economies reopen, outdoor activities may take precedence. While streaming services may have peaked with the epidemic, the video-gaming industry is expected to continue to rise. Netflix Inc (NASDAQ: NFLX) is headed in that direction, and investors are ecstatic.
Netflix CEO Ted Sarandos and his team have enlisted the help of Mike Verdu, a gaming expert, to spearhead the new initiative. Verdu was previously in charge of Facebook’s content development for Oculus virtual reality headsets. Previously, the executive worked for Electronic Arts (EA), where he was in charge of introducing Star Wars to gamers. He also worked on well-known games like The Sims. Netflix has listed employment openings for game developers in addition to signing Verdu.
According to Bloomberg, videogames will be included in Netflix’s offering alongside other films – movies, series, documentaries, and so on – somewhere in 2022, and will be initially free. This could help keep young customers who would rather play games on the computer than watch TV. Netflix’s product for young families would also be expanded.
As the pandemic fades, media businesses such as Netflix are concerned about a “attention recession,” which might result in a significant decline in profits. When things return to normal, the greatest winners of the covid crisis may be the largest losers. According to Craig Chapple of Sensor Tower, who was quoted in The Economist, gaming is “stickier.” There was an extra hour of gaming per week, and there are no signs of withdrawal.
The Economist is the source for this information.
While the approach is daring, ambitious, and possibly necessary to stay on top, Netflix runs the risk of following in the footsteps of Disney, which has failed in its video gaming efforts despite success elsewhere.
Since early May, the NASDAQ: NFLX graph shows that the stock has been on an uptrend, with higher highs and lower lows. Another optimistic sign is that the stock price has broken above the 50-day and 200-day Simple Moving Averages.
However, the Relative Strength Index (RSI) is approaching 70, indicating that the market is overbought and due for a correction.
Nonetheless, the bullish trend could continue, with the recent high of $554, the early February peak of $566, and the all-time high of $593 to monitor on the upside.
Support is found at $524, the bottom of the gap line from June, then $478, a double-bottom from June, and finally $461, a cushion from last year.
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