Netflix for Games: Both Console and Mobile Game Publishers Look To Subscription-Based Revenue
The video game market is huge and mature -- and current revenue models are showing their age.
Console makers are seeking long-term control of the seller/customer relationship, and they see subscription services as a way to lock in brand loyalty. Mobile game publishers are realizing that gamer patience for in-app ads and “freemium upgrades” is wearing thin. So there are strong incentives for both ends of the video game market to look at the Netflix model with envy. However, the analogy between games and filmed entertainment is not perfect, so game publishers face hurdles particular to their industry.
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