Well I bought a few shares for fun in the massive dip when they announced the squid game idea and am sitting on a 60% return (for now), so let's hope those days are indeed behind them. That said, the only reason I haven't cancelled my Netflix is the kids' demands. And Netflix have packaged the ad tier cleverly to minimise downgrade path for all but the most impoverished singletons. To your point about the games distribution problem - is Netflix overwhelmingly used on TVs? And if it is, how is that a problem? In our house Netflix is mostly all consumed on ios devices. I bet most parents have no idea how much attention kids are giving to those installed Netflix games, but they will when they want to cancel their sub - and the kids scream "no". Flash forward a few years when the market consolidates and attention gets even more fierce, games represent a good moat for Netflix, by which time they'll have presumably figured out the 'hub' problem. Interesting parallel/challenge there for Spotify with their Podcasts treatment.

Expand full comment

Thanks for the comment James.

~70% of Netflix viewing is on TV (https://www.vox.com/2018/3/7/17094610/netflix-70-percent-tv-viewing-statistics) and they don’t, afaik, have a path to getting their games on TV.

This means a lot of Netflix viewers remaining unaware of their games offer.

I agree games could increase stickiness for kids although games aren’t currently surfaced in kids profiles and it’s such a competitive domain (will their games be able to compete with Roblox, Fortnite, Minecraft etc.?)

Good work on buying the dip!

Expand full comment

Wow. 70% is surprisingly high. And I didn’t know that they don’t surface games on kids logins - though they appear if you search for them when logged in the app as a jnr, which is possibly a bit crafty. All very curious.

Expand full comment