The news: Netflix is digging deeper into gaming with a $72 million acquisition of Finnish mobile game studio Next Games. The deal is expected to close in Q2 2022, per TechCrunch.
How we got here: The two companies have worked together in the past to publish mobile titles tied to Netflix properties like “Stranger Things,” and fully bringing it into the fold will help Netflix further flesh out its gaming division.
Why video games? Netflix’s decision to invest heavily in video games puts it in a different playing field than competing streaming services that have recently turned their attention to sports streaming rights and foreign markets to help make up for a near industrywide slowdown in subscriptions.
Looking forward: Gaming may help Netflix seem distinct from other video-on-demand services, but the number of games streaming competitors is also growing.