Netflix Business Model Inspires the Entertainment Industry
In just a few years, Netflix has developed from a mail-order company for video films into a substantial online video store that has long been driven by Hollywood and its productions. The business model of a monthly fee to get an access to an extensive library has caught the attention of the entertainment industry. After all, Netflix has managed to become the most valuable company in the world, at least for a short time. The streaming service is now available in 190 countries around the world and has more than 170 million customers. Of course, this success story also stimulates the imagination of the gaming industry. In the meantime, several companies are waiting in line to implement a similar model.
In the future, customers might be provided by old and new gaming titles for a monthly fee of using this streaming service. Years ago, it was still common to buy games via DVD or download, but now the gaming platforms are focused on streaming. The advantages of gamers are apparent. Video games are becoming more sophisticated, the graphics are powerful, so these take up more and more space on your hard drive. Add to that the high purchase price, for a game that could turn out to be a disappointment in the worst case. After all, advanced gamers need to keep an eye on their costs. Therefore, you cannot buy every new bestseller that is right away.
Microsoft, Sony And Steam Are Leading the Way
The current situation could be changed quickly with the successful implementation of a subscription model. Numerous professional players are sure that there is no way around Netflix for gamers. The technical requirements for this are excellent. The bandwidth of the Internet is growing; high-speed connections are also spreading in rural areas. Experts say that the events at the beginning of 2020 to increase digitalization in all areas. Home office and video conferences have already seen a significant surge. It is sure that the infrastructure providers will increasingly push the pace in the future when expanding their Internet connections. That is going to make prices lower, create the perfect opportunities for even more streaming in all areas. The last few months have already shown that the increased data traffic cannot bring the network to its knees, so streaming has undoubtedly passed its acid test. Just as Netflix has become a danger for established TV stations, game consoles and PCs could also come under the pressure. If providers manage to achieve dominance over the market as Netflix did, the impact on the industry would undoubtedly be dramatic. PlayStation manufacturer Sony has already made provisions with PlayStation Now.
The graphics processor manufacturer Nvidia is launching their Shield TV. Software giant Microsoft has released xCloud into the race. At the same time, Steam has long been successfully active on the market as an Internet distribution platform for computer games, software, films, and shows what the future for games could look like. The numerous examples prove that Netflix is a role model for gaming. Now it seems unclear what company will ultimately take over the leadership over this market. But exciting time is coming up for all gamers.