Netflix plans to offer video games in push beyond films and TV

Netflix, marking its first big move beyond TV shows and films, is planning an expansion into video games and has hired a former Electronic Arts and Facebook executive to lead the effort.

Mike Verdu will join Netflix as vice president of game development, reporting to COO Greg Peters, the company said on July 14. Verdu was previously Facebook’s vice president in charge of working with developers to bring games and other content to Oculus virtualreality headsets.

The idea is to offer video games on Netflix’s streaming platform within the next year, according to a person familiar with the situation. The games will appear alongside current fare as a new programming genre — similar to what Netflix did with documentaries or standup specials. The company does not currently plan to charge extra for the content, said the person, who asked not to be identified because the deliberations are private.

Netflix shares gained as much as 2.1% to US$559.53 in late trading on July 14 after Bloomberg reported the news. The stock had been up 1.3% this year through the July 14 close.

Netflix has been seeking ways to keep growing, especially in more saturated markets such as the US. That has included building out its kids’ programming, opening an online shop to sell merchandise, and tapping Steven Spielberg to bring more prestigious movies to its line-up. The company remains well ahead of streaming rivals such as Disney+ or HBO Max, but it added fewer subscribers than expected in its most recently reported quarter. Pushing into games would be one of Netflix’s boldest moves yet. — Bloomberg