Netflix is reportedly exploring ideas to boost gaming revenue

Netflix Inc (NASDAQ: NFLX) is reportedly exploring ideas to boost its revenue from videogames. Its shares are currently up close to 40% since their low in October.

Netflix is committed to gaming for the long term

The mass media giant first made a push into videogames in 2021 to offer an additional, free perk aimed at keeping subscribers on the platform.

Netflix has so far spent $1.0 billion roughly on its push into gaming. Still, less than 1.0% of its worldwide subscribers play games on the platform on a daily basis, as per data from Apptopia.

Still, a Wall Street Journal report on Friday said the Nasdaq-listed firm is now discussing ways to generate revenue from its game portfolio.

Wall Street currently has a consensus “overweight” rating on shares of Netflix Inc.

Watch here: https://www.youtube.com/embed/QT5vJ4yHzJ0?feature=oembed

How may Netflix boost its gaming revenue?

Ideas that its management have considered to boost gaming revenue include in-app purchases and in-game advertising for those subscribed to its ad-supported tier.

The Los Gatos-headquartered firm is also exploring charging for bigger games, the WSJ report added on Friday.  

The report arrives a couple weeks before Netflix Inc is scheduled to report its financial results for the first quarter. Consensus is for it to earn $2.19 a share versus 12 cents per share a year ago.

Last month, Morgan Stanley analyst Benjamin Swinburne reiterated his “overweight” rating on $NFLX (find out more). His $550 price target suggests about a 17% upside from here.  

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