11th August 2022
Bite-sized business news from the UK and beyond
Good morning Italy, the birthplace of pizza, is saying arrivederci to Domino’s Pizza. The US takeaway giant opened its first Italian franchise in 2015 and expanded to 33 locations. But yesterday it was announced that all the stores have now closed. Who would have guessed that the people of Italy, where pizza is an internationally recognised national treasure, wouldn’t take to a mass-produced, over-the-top American version of the country’s national dish offered by a multinational chain?
- Energy crisis alarm bells grows louder
- Netflix makes gaming play to keep subscribers
Energy crisis alarm bells grows louder
Other stories to keep you in the loop
- US inflation lands lower than expected calming markets
- Supermarkets not passing on lower fuel price says RAC
- Student loan interest rates cut again as inflation and cost of living soar
- Deliveroo losses soar to £147m as cost of living crisis bites
- Coinbase $1.1bn loss kills crypto market rally
- Tui reveals £63m hit from recent travel chaos
- SoftBank set to book $34bn gain by slashing Alibaba stake
- London doctors raise £20m to help tackle NHS staffing crisis
Netflix makes gaming play to keep subscribers
Did you know that Netflix has games? You’re not alone if you answered no: this week it was revealed that less than 1% of its 221m subscribers engage with its gaming platform.
The streaming giant is making gaming an increasingly central part of its offering as it seeks to reverse a recent slip in subscribers. Netflix lost nearly 1m users from April to June, marking its second straight quarter with declining subscribers.
Last year the company announced its venture into the $93bn global mobile games market as competition with its streaming rivals intensified.
Despite a cold reception from users, it's doubling down by acquiring three gaming studios and aiming to have 50 games on its platform this year.
But the gaming industry is facing a slowdown that’s seen companies fall from pandemic highs. During lockdowns, sales soared as consumers had nothing better to do than play games. Now, people are spending money out of the house. Major game-makers EA and Nintendo posted disappointing earnings reports last quarter, as did companies that sell gaming hardware, like Nvidia.
The global games market is expected to grow by 2.1% this year, which is sluggish compared to 24.6% growth seen in 2020.
Zooming out: Netflix isn’t the only company growing its gaming library to compete for subscribers. Apple Arcade, launched in September 2019, now boasts over 200 titles. Amazon’s Prime Gaming bundles games, in-game offerings and a Twitch.tv subscription as part of Amazon Prime. Google provides access to hundreds of games through its Play Pass, and Meta has invested heavily in its Oculus Quest VR headset and platform.
Stat of the day
In 2014 Serena Williams started her own venture capital firm which today has stakes in 16 companies that are valued at least $1bn
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