Netflix (NASDAQ:NFLX) continues to engage its users through an expanding collection of games. This month, the streaming giant introduced four new games to its offerings, including Netflix Stories: Love is Blind, Storyteller, Ghost Detective, and Vikings Valhalla.
Ghost Detective was developed by Wooga, while Vikings Valhalla was created by Tilting Point and Emerald City Games. Netflix Stories: Love is Blind, on the other hand, was developed by Boss Fight, a part of Netflix Game Studio. Additionally, the puzzle game Storyteller, created by Annapurna Interactive and Daniel Benmergui, is now available for the first time on mobile platforms.
Netflix’s game library has now grown to include approximately 70 titles. The streaming giant is using games as a means to keep users engaged on its platform, particularly as it faces increased competition from companies like Disney (NYSE:DIS), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN).
While Netflix shares have seen a return of 28.7% year-to-date, shares of Amazon and Apple have posted returns of 50% and 32.5%, respectively, over the same period. Disney shares, however, have experienced a decline of 7.8%.
One of the driving forces behind Netflix’s share price performance has been its robust portfolio of foreign language content. The company, ranked as Zacks Rank #3 (Hold), is strengthening its presence in the Asia Pacific (APAC) region with an array of content and initiatives that promote creativity.
In the second quarter of 2023, Netflix’s paid subscriber base in APAC increased by 16.5% year-over-year to 40.55 million, adding 1.07 million new paid subscribers. In comparison, the subscriber bases in the United States and Canada, Europe, Middle East & Africa, and Latin America grew by 3.1%, 9.4%, and 7.2%, respectively, on a year-over-year basis.
Korean content has played a significant role in Netflix’s growth. The platform is continuously adding Korean originals to its content lineup, such as Mask Girl, Behind Your Touch, and Destined With You. Furthermore, it has announced the production of Aema, a Korean original series set in the 1980s Chungmuro, following the struggles of Hui-ran and Joo-ae in creating the hit film Madame Aema.
Beyond Korean content, Netflix is expanding its presence in India through partnerships with production companies like Yash Raj Films and Friday Storytellers LLP, the digital content production arm of Friday Filmworks.
Bright Prospects for Netflix in 2023 Netflix anticipates an acceleration in revenue growth in the second half of 2023, driven by the introduction of the paid sharing initiative and an expanding content library.
For the third quarter of 2023, Netflix forecasts earnings of $3.52 per share, reflecting a nearly 10% increase from the year-ago quarter. Total revenues are expected to reach $8.52 billion, indicating 7% year-over-year growth on a forex-neutral basis.
The Zacks Consensus Estimate for Netflix’s third-quarter revenues stands at $8.53 billion, reflecting a 7.59% year-over-year increase. Additionally, the consensus estimate for earnings has risen by a penny in the past 30 days to $3.49 per share.
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