Netflix to Acquire Finland’s Next Games

Netflix will acquire Finnish mobile games maker Next Games, the streaming giant said on its website Tuesday (March 1).

“Since I joined Netflix last summer, our vision for games — to build a library of great games for our members to enjoy — has always been clear and simple,” wrote Mike Verdu, the company’s vice president for games. “But to get there is no simple feat; it takes time to develop games that people love.”

Netflix is hoping Next will provide it with those games. The company specializes in mobile games based on entertainment franchises. Among its offerings is Stranger Things: Puzzle Tales, which was inspired by one of Netflix’s most popular series.

“Over the years, the team has successfully created and operated live service games with a dedicated fan base across the globe who play over long periods of time,” Verdu wrote.

Verdu also notes that Next Games’ homebase of Helsinki is home to “some of the best mobile game-makers in the world,” and close to other European cities with talent that will help the company boost its in-house game development capabilities.

“While we’re just getting started in games, I am confident that together with Next Games, we will be able to build a portfolio of world class games — with no ads and no in-app purchases — that will delight our members around the world,” he said.

Read more: New Streaming Dynamics Threaten Netflix, Subscriber Growth

Netflix’s move into gaming comes at a time when the company is coming off two years of subscriber loss as it faces competition from every direction on the streaming map.

As PYMNTS reported earlier this year, the company said it expected to add 2.5 million subscribers during the first quarter of this year, much lower than the 3.98 million it added in 2021’s first quarter. Analysts had expected to see 6.93 million new Netflix sign-ups in the first quarter.

“It’s definitely frustrating for us, the current slower growth,” Netflix Co-CEO Reed Hastings said in January.

Last year saw the company roll out merchandise with its first eCommerce shop, with products tied to hits like Stranger Things, The Witcher and more recent sensations like Squid Game.