While Sony and Apollo’s $26 billion all cash offer for Paramount last week turned heads for its potential impact on the streaming market, Sony’s desire to expand its video gaming empire is seen as the linchpin for a successful merger, according to one analyst. 

Paramount has been on the block for several years now but since the first hints of a sale emerged, the streaming market has tightened, with consolidation and shareholder demands for real profits driving the market, which is contending with higher interest rates and fickle viewers.

Despite its legacy, Paramount is having to compete with much larger players in the industry like Netflix, Disney+ and Prime Video and its size is forcing it to find a larger benefactor. That’s the conclusion from Ben Woods video analyst with MIDiA Research. 

“Paramount’s future hinges on being part of a much bigger (and more diversified) entertainment company,” Woods said. “With chief executive Bob Bakish leaving to make way for three division-level executives, Paramount appears to be clearing its decks ahead of an acquisition-shaped sea change.”

One of Paramount’s chief attractions is its extensive IP which includes its film franchises from Indiana Jones and Mission Impossible to its TV networks which include CBS, Nickelodeon, Comedy Central and MTV as well as its broadcast rights to soccer’s Premier League. Extending this IP to Sony’s Playstation gaming platform could be the deciding factor that tips the scales in Sony’s favor. 

The breadth of possibilities enabled by a combined Sony-Paramount entity could boost Sony’s subscriber base, enhancing the company’s presence as a diversified media company across multiple platforms. 

“Sony could leverage its large gaming subscription base, its impressive music library, its Paramount-boosted TV / movie roster, and even CBS’s sports partnerships to offer a unique subscription offering across various media types appealing to various demographics,” Woods added. “One clear distribution opportunity would come from packaging up Paramount Plus with PlayStation Plus and targeting PlayStation Network’s near 130 million users.

“Having all this content under one umbrella in one app—ad-supported tier—could help bolster overall engagement with Sony’s IP and give it a bigger presence in today’s fiercely competitive attention economy,” he concluded. “So far, Sony has struggled to fully realie the power of transforming its games, movies, hardware, and music businesses into a united force. Paramount could well be the binding agent it needs to bring this cross-entertainment promise to bear.”

Read Tadesse's report here. 

LOS ANGELES—MGM Alternative, a division of Amazon MGM Studios, and the Global Esports Federation have announced a deal to work together to create content relating to Global Esports Games, esports athletes, and the gaming lifestyle. 

MGM Alternative already produces The Voice, Shark Tank, and Survivor, and GEF, which promotes the credibility, legitimacy, and prestige of esports globally. 

The new agreement will involve the creation of new linear and streaming content, as well as live events within GEF's esports conventions and events, the companies said. 

Esports has experienced significant growth and success in recent years, with the global esports market estimated at $4.2 billion in 2024. Statista estimates that growth is set to continue with a CAGR of 7.10% between 2024 and 2028.

"With the global interest in esports at an all-time high, we're eager to share the stories and excitement surrounding the Global Esports Games, their athletes, and the gaming lifestyle," said Barry Poznick, general manager, MGM Alternative. "This is the beginning of an epic collaboration with the Global Esports Federation to develop content that appeals to the worldwide audience of gamers and non-gamers alike."

"We are thrilled to unite with MGM Alternative to unlock the incredible potential of esports. This collaboration will amplify the voices of diverse esports athletes, showcasing their compelling stories to the world. Together, Global Esports and MGM Alternative will provide an innovative platform that will power growth and value for the world's esports community," said Paul J. Foster, chief executive officer, Global Esports Federation.

ENGLEWOOD CLIFFS, N.J.—LG Electronics and Amazon have reached an agreement to add Amazon’s popular cloud gaming service Luna to recent 2021-2023 LG Smart TVs with webOS6.0 or newer in the U.S. 

LG Smart TV owners can access Luna directly from the Home Screen Game Card on 2023 LG Smart TVs or by downloading the Luna app from the LG Content Store for LG Smart TVs from 2021-2022.

The agreement allows Amazon Prime members to play Fortnite and a rotating selection of games at no additional cost. Ubisoft PC gamers can connect their account to play select games they already own. 

Players can also subscribe to libraries of games with Luna's various subscriptions. Luna+ unlocks games across genres—Ubisoft Multi Access includes AAA titles and Jackbox Games opens up popular hits.  Some popular titles on Luna include Resident Evil 2, LEGO DC Super-Villains, The Jackbox Party Pack 3 and Assassin's Creed Valhalla. 

Luna is available in the U.S., Canada, the United Kingdom, and Germany.

LG Smart TV owners in these regions can start playing by logging into their Amazon account on the Luna app. Then they can connect a Luna Controller, either a compatible Bluetooth-enabled controller or the Luna Phone Controller app, and start gaming. The Luna Phone Controller app is available as a free download in the iOS, Android and Amazon app stores.

This new integration builds on LG’s work to make its TVs better gaming platforms. Since debuting the UltraGear line of versatile, premium displays built for gameplay in 2018, LG introduced Variable Refresh Rate (VRR) and Low Latency Mode (LLM) to gaming monitors in 2019 to provide a virtually seamless gaming experience and compatibility with a wide variety of gaming controllers. 

In 2022, revealed the LG OLED Flex, the company's first bendable 42-inch OLED display and a perfect match for immersive console, PC and cloud gaming.

NEW YORK—Deloitte and Sinclair Broadcast Group have announced that they plan to launch a new metaverse sports fan community experience that will leverage Epic Games' Unreal Engine to explore the future of gameplay and the fan experience through the metaverse.

The community will launch the week of March 6th.

The fandom community was built by Deloitte's Unlimited Reality practice, which brings together 3D computing, artificial intelligence, Web3.0, immersive experiences and advanced connectivity to help clients create business value. The community makes use of Epic's Unreal Engine — a powerful 3D creation tool that brings robust experiences to life in real time.

Sinclair is billing the partnership as an important next step in Sinclair's plans to deepen engagement with its viewing community, drive new revenue streams through experiential gaming and help redefine sports viewership and experiences through the metaverse. 

The community is designed to build on the new ways fans are consuming sports-related content, as well as the desire from fans for more immersive content and greater engagement with teams, Sinclair said.

It is also designed to engage fans beyond simply viewing of live games, providing a metaverse experience to engage fans during post-season, pre-game, post-game and eventually, during the game. 

"By bringing together Sinclair's vision of virtual metaverse engagement with Deloitte's deep client and sports industry knowledge, metaverse know-how and break-through solutions and ecosystem partnership, we plan to deliver an enhanced fan experience that caters to the unique communities we serve," said JR McCabe, chief business officer, Consumer Products, Sinclair Broadcast Group.

"In Deloitte's recently published '2023 Sports Industry Outlook', it is clear the blending of physical and virtual worlds is accelerating in the industry, providing fans with more ways to access and consume sports content than ever before," said Dan Helfrich, chair and chief executive officer of Deloitte Consulting LLP. "We are excited about the opportunity to team with Sinclair Broadcast Group to augment the viewing experience by harnessing the power of virtual worlds for broader community accessibility and deeper fan engagement."

Learn more about Sinclair's virtual community here.

NEW YORK—Broadband subscriptions worldwide are expected to hit 1.13 billion by 2023, exceeding the 1.09 billion traditional pay TV subscribers for the first time, according to a report from S&P Global Market Intelligence report.

The newly published "2023 Technology, Media and Telecommunications (TMT) Industry Outlook," part of S&P Global Market Intelligence’s Big Picture 2023 Outlook Report Series, focuses on the market future of the metaverse in gaming and the enterprise, datacenter sustainability amid a worsening energy crisis, and the rise of fintech as a service. The report also explores video streaming competition and broadband transformation as forces of disruption in 2023.

The fact that broadband subscriptions will exceed pay-TV subscriptions has wide implications for the future of media, S&P says, which notes that gaming technology will be the driving force behind the metaverse’s evolution in the near term as augmented reality (AR) and virtual reality (VR) hardware enables users to engage in virtual worlds in and outside of work. 

AR and VR device adoption will grow steadily over the next five years as big tech companies underline the hardware's potential as a conduit to the metaverse, S&P said. As of the end of 2021, the researcher estimates there were 28.5 million AR/VR headsets installed worldwide across consumer and commercial settings, and forecasts that base to grow to 73.6 million by 2026.

"The foundational shift of the global economy to a digital footing—a shift that has been underway for over a decade and accelerated during the pandemic—continues. This is creating enormous opportunities for new value creation and disruption,” said Eric Hanselman, Chief Research Analyst for TMT at S&P Global Market Intelligence.

For traditional TV, rising inflation and cost of living crises may force some consumers to pare back streaming subscriptions, which in turn could prompt the pack chasing Netflix and Disney to focus on profitability instead of scale, S&P said. By 2030, the researcher predicted that global pay TV penetration will fall to 51.2% of residential households, from 57.7% in 2021.

ENGLEWOOD CLIFFS, N.J.—Smart TV manufacturers continue to push into the gaming sector with LG Electronics USA  partnering with Google Stadia to offer three months of access to Stadia Pro for both new and existing LG Smart TV owners. 

The announcement came on the same day that Samsung, which has launched a Gaming Hub on its TVs, made Amazon Luna cloud gaming service available on its smart TVs. 

Netflix meanwhile has been pushing aggressively into gaming and merger and acquisitions of gaming companies has hit record levels this year. 

Smart TVs have become an increasingly popular approach for gamers because they don’t require expensive consoles or PCs. 

The LG/Google promotion applies to LG TVs2 operating webOS 5.0 or higher in the 22 countries where Stadia, Google's cloud gaming platform, is now available.

Stradia offers more than 50 titles to play, with new titles added every month, unique discounts on games and add-on content regularly offered. 

Stadia Pro enables up to 4K HDR graphics, 60 FPS gameplay and immersive 5.1 surround sound,

The Stadia store also features over 250 popular games available to buy, including Cyberpunk 2077, Resident Evil Village, Assassin's Creed: Valhalla, Hitman 3 and Baldur's Gate 3, as well as access to a growing list of free games and demos, all playable with just a compatible controller and no game downloads or installs required.

NEW YORK—New forecasts from Kagan, the media research unit of S&P Global Market Intelligence, suggest that the ongoing move from console gaming to cloud-based gaming could dramatically boost broadband usage of gamers by 6x. 

That development could both put pressure on existing broadband networks and create new opportunities for operators to sell them higher bandwidth plans. 

The projections come at a time when broadband networks are facing a wave of new demand as video game publishers increasingly embrace cloud gaming services. 

Kagan estimates that console and PC gamers playing 42 hours a month, who transition from downloading software to streaming games via the cloud in HD, would consume six times more data and potentially need higher bandwidth plans to support their hobbies, according to Neil Barbour, the lead analyst for this analysis.

Key highlights from the analysis include:

• It is forecast that the U.S. game console installed base will contract by 15.4 million units over the next five years, and many of those users are expected to transition to cloud gaming.
• According to Kagan's spring 2022 U.S. Consumer Insights survey results, 69% of console owners play games weekly. If that percentage holds through the forecast, as many as 10.6 million frequent gamers could be moving from consoles to the cloud by 2026. That means each would consume an additional 378 GB of data per month on average, or 527% more than the average game download, which uses 60 GB of data, when playing for 42 hours on Xbox Cloud Gaming, which requires 20 megabits per second (Mbps) of bandwidth, Kagan predicted. 
• Hardcore gamers who transition to the cloud would also be on the network for longer periods of time and require more connection stability than they would if they were just downloading or playing multiplayer games, Kagan reported. Gamers may also need more bandwidth, particularly if other members of the household are playing or streaming video concurrently. It is estimated that less than 13% of U.S. broadband users subscribed to 1 Gbps or higher in 2021, while more than two-thirds of broadband customers to 100 Mbps or higher.
• The baseline for THE cloud gaming analysis is a 1080p stream running at 60 frames per second, a common expectation for hardcore gamers. Examples of cloud gaming client devices include streaming media devices and smart TVs.

NEW YORK— Amid the burgeoning debate about the metaverse and its prospects for dominating the media landscape, Deloitte's Digital Media Trends survey found a number of signs that streaming media might be vulnerable to competition from the metaverse. Those included a notable lack of loyalty to individual streaming services, which face high churn rates among younger subs, and the popularity of video games, which cut into the time audiences spend with streaming services and are beginning to expose younger audiences to the metaverse.  

Overall the report, which covers respondents in five countries, found that streaming video providers face greater pressure to attract and retain subscribers who have become savvier about chasing the content they want and managing the costs they pay. This is especially true with younger generations who have grown up with smartphones, social media and video games, and prefer entertainment experiences that are more social and interactive. For the youngest generations, user-generated social media streams and social video games may be meeting their needs better than streaming video and the popularity of games is providing a gateway into the metaverse, the researchers said. 

"While streaming video on-demand business models look much the same as they did when they were created 15 years ago, social media and gaming companies have quickly evolved their offerings, leveraging technology, and capitalizing on behaviors,” said Jana Arbanas, vice chair, Deloitte LLP and U.S. telecom, media and entertainment sector leader. “Social media is free and available anywhere, anytime, offering both passive and interactive experiences with endless streams of personalized content, without the cost of a subscription. And more people are interacting and socializing in game worlds that host millions of users, brands and franchises, and major non-gaming events. SVOD companies aren't just competing with each other for audiences, they are also competing with different, more social and immersive forms of entertainment."

Other key data points include:  

• The average churn rate in the United States remains at 37% across all paid streaming video on-demand (SVOD) services. In the United Kingdom (U.K.), Germany, Brazil, and Japan, the average overall churn rate is closer to 30%.
• In all five countries, Gen Z respondents prefer video games as their favorite form of digital entertainment. For older generations, watching TV and movies at home comes first.
• In the U.S., 81% of social media users say they use social media services at least daily; 59% use these services several times a day. Across the U.S., the U.K., Germany, Brazil and Japan, people in younger generations (including Gen Z, Millennial, and Gen X) are consistently more likely to say they use social media.
• Nearly half (46%) of U.S. respondents say they watch more user-generated content than they did six months ago, and half say they always end up spending more time watching user-generated content than they had planned (a number that jumps to 70% among Gen Z).
• In all five countries, Gen Z and Millennial gamers play an average of 11 hours a week. In the U.S..
• Churn is highest among the youngest generations as just over half of U.S. Millennials (52%) and Gen Z (51%) have either canceled, or both added and canceled, an SVOD service within the last six months.
• Twenty-five percent of those in the U.S. have canceled a streaming video service and then resubscribed to the same service within the past 12 months. Respondents say they churn and return either because a new season of their favorite show was released, they got a free or discounted rate, or content they wanted to watch moved to the service. It's global too. In the U.K., Germany, Brazil and Japan, around 22% have churned and returned. Overall, Gen Z and Millennials are significantly more likely to churn and return.
• Cost is also a factor in retaining consumers who are thinking of canceling. For a reduced cost, some would be willing to sign up for an annual subscription, watch more ads, or wait 45 days to watch a new release. Globally, many people prefer ad-supported options for streaming video that reduce or eliminate their subscription costs.
• In the U.S., 81% of social media users say they use social media services at least daily and 59% use these services several times a day. Across the U.S., U.K., Germany, Brazil and Japan, Gen Z, Millennials, and Gen Xers are consistently more likely to say they use these services.
• Forty-six percent of U.S. respondents say they watch more user-generated content than they did six months ago, and half (50%) say they always end up spending more time watching user-generated content than they had planned (a number that jumps to 70% among Gen Zs).
• About 4 in 10 (41%) of U.S. respondents say they spend more time watching user-generated video content than they do TV shows and movies on video streaming services — a sentiment that increases to around 60% for Gen Zs and Millennials.
• Seventy percent of U.S. respondents say they follow an influencer, and one-third (33%) say these online personalities influence their buying decisions; that figure jumps to more than half of U.S. Gen Zs (52%) and Millennials (53%). 
• Social media services are also becoming shoppable retail destinations; more than half of U.S. respondents (53%) and around 40% or more in the U.K., Germany and Japan say they see customized ads on social media for products or services they have been looking for — a number that increases to 72% in Brazil.
• Whether smartphone, console, or PC, gaming has become huge, and it's taking time away from other forms of entertainment. 
• In the U.S., more than 80% of both men and women say they play video games, and half of smartphone owners say they play on a smartphone daily. Gen Z and Millennial gamers play the most, logging an average of 11 and 13 hours per week, respectively. Gen X gamers follow closely behind with around 10 hours of gameplay every week, reminding us that it's not just the kids.
• About half of all U.S. gamers say that playing video games has taken time away from other entertainment activities; unsurprisingly, these percentages increase for younger gamers. This trend is also playing out in other markets, with just over half of gamers in the U.K. (55%), and just under half of gamers in both Brazil (45%) and Japan (44%) also trading other entertainment activities to play video games. 
• Overall, more than three-quarters of U.S. gamers surveyed also say that gaming helps them relax, while nearly 60% report that gaming helped them through a difficult time. About half (53%) of U.S. gamers say that playing video games helps them stay connected to people. And these games are supporting identity: 61% of U.S. gamers say that personalizing their game character or avatar helps them express themselves.
• Gaming and music also appear to be closely linked; about half (51%) of U.S. gamers say they often discover new music while playing video games. 
• About a quarter (23%) of U.S. gamers say they have attended an in-game event in the last year, with Millennials and men being the most likely attendees. Remarkably, 82% of those attending live in-game events also made a purchase because of the event: 65% purchased digital goods and 34% purchased physical merchandise, reinforcing the steady blurring of lines between real and virtual worlds.

The online survey of 2,000 U.S. consumers was conducted in December 2021 and January 2022 and was also fielded for the first time in mature digital entertainment markets, including the U.K. (n=1,002), Germany (n=1,002), Brazil (n=1,000) and Japan (n=1,000).

NEW YORK & MIAMI—The NFL and StatusPRO have announced that they will be launching a NFL-licensed virtual reality (VR) simulation gaming title to fans globally. 

The companies have not announced a release date or pricing. The first NFL-licensed VR game will be available on Meta Quest and PlayStation VR. 

“Virtual reality gaming is rapidly expanding and our partnership with StatusPRO allows us to explore a new immersive version of NFL gaming with support of the two largest VR platforms within this emerging space,” said Joe Ruggiero, senior vice president, consumer products at the NFL. “We are seeing a growing number of fans engaging with VR and we’re excited to launch the first-ever VR gaming title that complements our existing offerings in the market today.”

The NFL and StatusPRO will leverage StatusPRO’s athlete-led technology and work alongside their experienced team of developers to create a game that provides fans with a first-person experience similar to their favorite football players, the companies said. 

“Today marks an important milestone for StatusPRO and the VR industry,”  said Troy Jones, co-founder and CEO of StatusPRO. “By partnering with the NFL, we will offer a new form of engagement between athletes and fans unlike anything in the marketplace. NFL football fans and gamers alike will be able to connect with the world of sports through authentic, immersive gaming products that democratize the experience of the professional athlete,”

REDMOND, Wash. and Santa Monica, Calif.—Microsoft has announced plans to acquire Activision Blizzard, a leader in game development and an interactive entertainment content publisher, in $68.7 billion deal that will make Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony. 

The planned acquisition includes iconic franchises from the Activision, Blizzard and King studios like “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming. The company has studios around the world with nearly 10,000 employees.

This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse, Microsoft said in announcing the deal, which is expected to close in fiscal 2023.

The transaction, which is the largest in Microsoft’s history, has been approved by the boards of directors of both Microsoft and Activision Blizzard. It is still subject to regulatory review and Activision Blizzard’s shareholder approval. 

Bobby Kotick will continue to serve as CEO of Activision Blizzard. Once the deal closes, the Activision Blizzard business will report to Phil Spencer, CEO, Microsoft Gaming.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” said Satya Nadella, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”

“For more than 30 years our incredibly talented teams have created some of the most successful games,” said Bobby Kotick, CEO, Activision Blizzard. “The combination of Activision Blizzard’s world-class talent and extraordinary franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry.”

The combination will strengthen Microsoft’s presence in mobile, which is the largest segment in gaming, with nearly 95% of all players globally enjoying games on mobile and will allow Microsoft and Activision Blizzard to work together to make franchises, like “Halo” and “Warcraft,” virtually anywhere they want. 

With games like “Candy Crush,” Activision Blizzard´s mobile business represents a significant presence and opportunity for Microsoft in this fast-growing segment, the companies added. 

The acquisition also bolsters Microsoft’s Game Pass portfolio with plans to launch Activision Blizzard games into Game Pass, which has reached a new milestone of over 25 million subscribers, Microsoft said. 

With Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three billion-dollar franchises, this acquisition will make Game Pass one of the most compelling and diverse lineups of gaming content in the industry, Microsoft said. 

The deal will also give Microsoft 30 internal game development studios, along with additional publishing and eSports production capabilities.

NEW YORK & SAN FRANCISCO—Take-Two Interactive, which makes the popular Grand Theft Auto game, has announced that it is acquiring Zynga, the maker of FarmVille, for about $12.7 billion in a cash and stock transaction. 

The combination will create a powerhouse in the gaming industry that could have about $7 billion in combined net bookings in 2022. The deal comes in the wake of a number of other deals for gaming studios by such players as Netflix. 

“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry,” said Strauss Zelnick, chairman and CEO of Take-Two. “This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity. Zynga also has a highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months. As we combine our complementary businesses and operate at a much larger scale, we believe that we will deliver significant value to both sets of stockholders, including $100 million of annual cost synergies within the first two years post-closing and at least $500 million of annual Net Bookings opportunities over time.”

“Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth and synergies together,” said Frank Gibeau, CEO of Zynga. “I am proud of our team’s hard work to deliver a strong finish to 2021, with one of the best performances in Zynga’s history. We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming.”

The companies noted that mobile gaming is the fastest growing segment within the industry, with an estimated $136 billion in gross bookings in 2021, and that the transaction is expected to establish Take-Two as a leader in mobile gaming, with mobile expected to comprise over 50% of its net bookings in fiscal year 2023 (as compared to an estimated 12% in fiscal year 2022). 

At the close of the transaction, Strauss Zelnick will continue to serve as chairman and CEO, and the management team of Take-Two will continue to lead the combined company. Frank Gibeau and Zynga's president of Publishing, Bernard Kim, will drive the strategic direction for Take-Two's mobile efforts and will oversee the integration, and day-to-day operations of the combined Zynga and T2 Mobile Games business, which will operate under the Zynga brand as its own label within the company. 

Additionally, Take-Two will expand its Board of Directors to 10 members upon the closing of the transaction to add two members from Zynga’s Board of Directors.

The transaction is expected to be completed during the first quarter of Take-Two’s fiscal year 2023, ending June 30, 2022.

LOS GATOS, Calif.—After testing a limited number of mobile games in a few international markets, Netflix has launched its mobile gaming service worldwide on Android devices. 

The launch comes at a time when Netflix is facing increasing competition in its core SVOD service and marks an ambitious effort by the company to add and retain subscribers by offering them new entertainment experiences. 

At launch on November 2, Netflix members could play five mobile games: Stranger Things: 1984 (BonusXP), Stranger Things 3: The Game (BonusXP), Shooting Hoops (Frosty Pop), Card Blast (Amuzo & Rogue Games), and Teeter Up (Frosty Pop). 

In announcing the new games, Netflix said “we want to begin to build a library of games that offers something for everyone” and that “we’re in the early days of creating a great gaming experience” with more to come. 

The games are included with existing All-Access Passes. 

As part of the push into gaming, Netflix has been hiring execs from the gaming industry and has acquired Night School Studio. 

The company said that some games would require an internet connection but others wouldn’t, allowing them to be accessed when travelling without connectivity.

The games will be password protected and are not available on kids profiles.  

LOS GATOS, Calif.—Faced with growing competition for streaming subscribers, Netflix is continuing its expansion into gaming with a deal to buy game creator Night School Studio. 

After hiring Mike Verdu, who worked at Facebook, Electronic Arts and other gaming companies, the deal for Night School Studio further expands its investments in the area. 

Founded by Sean Krankel and Adam Hines in 2014, Night School Studio is best known for their critically acclaimed debut game, OXENFREE, Netflix VP of game development Verdu said in a blog. 

“We’ll continue working with developers around the world and hiring the best talent in the industry to deliver a great collection of exclusive games designed for every kind of gamer and any level of play,” Verdu said. “Like our shows and films, these games will all be included as part of your Netflix membership  — all with no ads and no in-app purchases. Stay tuned for more.”

Adding games to its offerings could help Netflix compete with increased competition from Disney, Warner Bros. and others that have slowed sub growth. 

Separately, Netflix has also introduced some mobile game titles on Android to Netflix subs in Spain and Italy and added three new titles to Poland, where it had first launched mobile gaming. 

In a blog announcing the acquisition, Night School Studio co-founder Sean Krankel explained that “Netflix gives film, TV, and now game makers an unprecedented canvas to create and deliver excellent entertainment to millions of people. Our explorations in narrative gameplay and Netflix’s track record of supporting diverse storytellers was such a natural pairing. It felt like both teams came to this conclusion instinctively.”

No terms of the deal were disclosed. 

ADDISON, Texas—New research from Parks Associates highlights the importance of gaming in the competition for consumer leisure time with 75% of the heads of U.S. broadband households saying they play video games for at least one hour per week. 

The report also found that 36% of broadband homes subscribe to or are trialing at least one free or paid gaming service and that the market for U.S. cloud gaming services continues to grow, with forecasted revenue of $3.6 billion in 2024. 

“While nearly two-thirds of households are not yet engaged with any gaming services, cloud gaming can become a staple within the subscription entertainment options available to consumers,” said Paul Erickson, senior analyst, Parks Associates. “Netflix’s recent entry into the industry brings more attention and awareness to online subscription gaming and broadens the potential consumer base for these services – particularly since they will provide access to games for free to their subscribers.”

The new report, “Quantified Consumer: Next-Generation Gaming: Consoles and Cloud  and Evolution of Gaming: The State of Cloud Gaming”  examines industry developments, consumer interest and demand for cloud gaming services, and business models and implementation strategies among leading services.

The research also reports 91% of console gamers play games on at least one other platform, with 37% playing on a PC, mobile device, and a connected TV device (either a smart TV or streaming media player) in addition to their console.

“Console owners who also play on a mobile device and a PC or who play on every platform category makeup half of all console gamers. Simply put, console gamers are multiplatform gamers,” Erickson said. “Subscription and cloud gaming services require a multiplatform approach so that providers can appeal to both dedicated gamers and the remaining market of casual or convenience gamers.”

COVID-19 has resulted in an unprecedented number of people spending a record amount of time at home, consuming multiple subscriptions worth of streamed entertainment across multiple devices. 

At the same time, the growing popularity of online gaming is having ripple effects throughout the connected home ecosystem, driving broadband upgrades, improvements in home networking and Wi-Fi management, and more subscription stacking, the report noted. 

LONDON—By 2024, it’s estimated half of the global population, or 3.4 billion people, will be gamers.

But, does the gaming industry have the technology to cope with that kind of demand? And what parallels can it draw with the world of media and entertainment?

Those questions will be among the discussion during TVBEurope’s upcoming webinar looking at the hope and hype of gaming in the cloud.

Among the topics set to be discussed by our panel of experts is whether broadcasters can tap into that exponential growth. During lockdown, the amount of people watching others play games has seen a significant increase, and it’s particularly popular with the young who don’t watch traditional TV. Could that be an untapped market for broadcasters who are desperately trying to capture the attention of younger viewers?

Plus, can the gaming industry cope with the increasing bandwidth needed to keep so many viewers happy? And what about latency? Could 5G be a possible option, or will that lead to even further growth?

Other topics likely to be discussed include the use of gaming engines in film and TV productions, Disney+’s "The Mandalorian" being just one example; could gaming companies look to TV platforms for examples of bundling content; and what can the media industry learn from gaming and vice versa?

The panel of experts will include Laurent Depersin, research and innovation home lab director at Interdigital; Olivier Avaro, CEO of gaming company Blacknut; Microsoft’s industry lead for media and technology Stuart Almond; and Amir Ghodrati, director of market insights at AppAnnie.

The free webinar will take place at 3 p.m. BST on Thursday, Sept. 24.

TIBURON, Calif.—Serious gamers may be saying goodbye to PCs and hello to TV and cloud-based gaming systems over the next few years. Jon Peddie Research, in a recent report, forecasts that due to the decline of the PC platform globally, 20 million PC gamers will choose to go with TV gaming platforms between 2018 and 2022.

The PC market is being affected because of slower innovation and introduction of new products, but also because of improved TV displays and console semiconductors.

Some of the TV-based systems that gamers will gravitate toward are long-established brands like PlayStation, Xbox and Nintendo, but new services are also making an impact. Game streaming services have been announced by both Google and Apple that can be accessed through TVs. Other streaming and cloud gaming platforms are also available for passionate gamers.

“In the next five years, we will see potential customers with access to TV gaming swell by the hundreds of millions,” said Ted Pollak, senior analyst, Gaming Industry.