Racism is Costing Us All — with Heather McGhee

Netflix's Strategy

Netflix's potential entry into the gaming industry is generating buzz, with Scott Galloway highlighting the company's need for creativity to succeed. He compares Netflix's strategy to Apple's Arcade, suggesting that Netflix could leverage its recommendation engine to enhance gaming experiences 1. Joost von Drunnen, a gaming industry expert, questions the impact of Netflix's involvement in gaming, emphasizing the industry's vast scale and potential 1.

The question is not what impact will Netflix have on the game space. The question is to what degree will participating in the game space impact and change Netflix?

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Galloway also notes the importance of Netflix adopting a venture capital approach, placing multiple bets to discover successful gaming ventures 2.

   

Industry Dynamics

The gaming industry is dominated by established players like Sony, Nintendo, and Microsoft, posing significant challenges for newcomers like Netflix. Joost von Drunnen points out that these companies have invested heavily in cloud gaming and game streaming, setting a high bar for Netflix to compete against 3. He suggests that Netflix should take a cautious approach, learning the industry and building a credible portfolio over time 3.

You can't really match that in either purchasing enough content of the same scope and scale and the same depth and credibility.

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Galloway echoes this sentiment, acknowledging the difficulty Netflix will face in disrupting such a well-established market 1.