On earnings, Netflix used to tell investors it was excited about video games and podcasts, now gone silent

A notable earnings omission

Netflix had repeatedly discussed its plans for video games, but neither games nor podcasts appeared in its third-quarter earnings update on Tuesday. The company offered no explanation for the silence.

The report’s writer interprets the omission as a sign that Netflix does not expect either effort to contribute much to its business in the near future. Netflix itself did not state that conclusion.

Games once drew attention

Netflix launched its gaming business in 2021 and regularly highlighted its ambitions in updates to investors. In 2022, cofounder Reed Hastings predicted the company would eventually “be a big leader in games.” The company has described gaming as a major competitor for viewers’ time. Offering games could let Netflix capture some of that attention for its own service.

Podcasts had a recent push

Netflix also promoted podcasts in each of its previous two quarterly updates. In April, it called them a “potential incremental engagement opportunity.” Three months later, the company said podcasts could give viewers more reasons to use Netflix during the day and on mobile phones. It noted that half of viewing takes place in the evening.

Core challenge remains viewing

The article frames Netflix’s immediate priority as making films and television shows that attract new subscribers and keep existing customers engaged for longer. That challenge may help explain why games and podcasts have received less attention.

The writer says both categories could eventually matter to Netflix, but the company’s latest update appears to signal that this is not likely soon. Video podcasts could also serve as lower-budget talk shows, the article notes.