Netflix is exploring ways to monetize its gaming segment by considering the introduction of ads, in-app purchases, and premium game charges. These potential changes, which were highlighted in a report by The Wall Street Journal, are under discussion as the streaming giant looks to increase revenue from its currently small library of games. As of now, Netflix offers its games as a complimentary benefit to subscribers, with a selection that includes titles like 'Oxenfree 2: Lost Signals,' 'Death's Door,' and 'GTA: The Trilogy.' The platform is expected to add more games, such as the popular roguelike 'Hades.' However, the daily gaming engagement from Netflix users remains below 1%, indicating a need for Netflix to bolster its gaming offerings significantly if it wishes to become a serious player in the gaming industry. The introduction of ads would be limited to the ad-supported subscription tier, but details on how in-app purchases would be implemented are unclear at this time.

How might Netflix's addition of ads and in-app purchases to its gaming service affect subscriber experiences?

If Netflix adds ads and in-app purchases to its games, subscribers on the ad-supported tier may encounter interruptions during gameplay. In-app purchases could lead to additional costs for users seeking full gaming experiences. The impact on subscriber experiences would depend on how these changes are implemented and whether they align with user expectations for a platform traditionally known for ad-free content.

Background information on Netflix's gaming efforts: Netflix first announced its venture into the gaming industry in 2021, with an initial focus on mobile games. The move represents a strategy to diversify its entertainment offerings and create new revenue streams. However, the uptake of Netflix games has been slower than anticipated, and the company faces stiff competition from established players in the gaming industry. As it builds its gaming catalog and considers new monetization strategies like ads and in-app purchases, Netflix aims to enhance value for subscribers and attract a broader audience of gamers.