Netflix Says It Won't Go on an Acquisition Spree After Night School Studio

Netflix Says It Won't Go on an Conquering Spree After Dark School Studio

In tardily September, Netflix announced its outset acquisition in the gaming industry, Night Schoolhouse Studio (the developers of Oxenfree).

During this week's Q3 2021 earnings call, Netflix executives told investors not to expect an acquisition spree or anything similar that, equally the plan is to abound slowly and steadily in the gaming business.

Greg Peters (COO and Master Product Officer):

Again, information technology's something that nosotros'll be opportunistic. So I would say, don't expect us to go on a buying spree or something like that. This volition be ane of the tools that we use and nosotros'll use information technology opportunistically when we notice a nifty opportunity out there. And Spencer, do you want to elaborate on that?

Spence Neumann (CFO):

I think you striking the nail on the caput, Greg. I think, Nidhi, as you can tell from our track record, we are fairly selective when information technology comes to Thousand&A. But equally Greg said, when an opportunity presents itself where nosotros feel similar we're aligned with the Company, I call up that's an opportunity we'll take. Simply again, information technology's not -- nothing more than that.

And the only thing I'd add just more broadly in ADA, is merely that - and Greg talked about this - touched on this which is, this is going to be that we're learning into this. This is in terms of business organization impact over time from games. This is not only months, merely years of building.

And so even in our nearly ambitious success scenario, it will be years, we would wait, earlier this could take a meaningful impact on our concern. And then very excited for the long term. Nosotros're going to be patient, we're going to move rapidly and acquire quickly. But this is a multi-year build.

The executives are also adamant that adding games to the offering will exist highly beneficial to Netflix as a whole, given the strong affinity with Television receiver shows and movies.

Greg Peters:

[...] we think that this merely connects really well with the other piece of work that we're doing. We're creating all these amazing universes and worlds and characters and story lines.

And nosotros can attach to the passion and fandom that our members take on viewing those on the video side, with game experiences and permit them to get deeper and explore spaces that they wouldn't have otherwise seen on the video side. And then we really think there'south a adept connection and synergy in that location.

And over time, we'll endeavor and bring those closer together and let those two worlds more influence each other and have of a more straight connection. But once again, that'southward something that as years in the making, nosotros've really got to iteratively explore and none of us know exactly what that will look like considering we accept to sort of find our way as we go.

Quote credits to Seeking Alpha