Apple is reportedly working on a Netflix like subscription service for gamers. This planned service would work like any other subscription services do, allowing users to pay a regular subscription fee for a number for a number of titles.
A report by Cheddar, citing five unnamed sources, claims that Apple has been in talks with game developers for months in order to create a Netflix like service for games. Apple is also considering to work as a publisher for certain developers which could mean the company is likely to take a role in marketing, distribution and other costs for certain titles.
The report suggests that the service is in the early stage of development and Apple might decide against it. With iPhone sales falling down, the company is looking for other ways to stay relevant with plans for a video streaming service, partnering carriers for Apple Music, and a news subscription service as well.
It has been reported that the mobile gaming market is expected to grow rapidly in the upcoming years and Apple might be looking forward to tapping into the lucrative market of mobile gaming with its gaming subscription service.
“The vast majority of revenue coming out of the App Store is games,” said Brandon Ross, an analyst at BTIG that covers the video game industry, in conversation with Cheddar. “Subscription has proven to be a successful way of monetizing on mobile. It is completely unproven in games except for some minor success from Microsoft, Sony, and Electronic Arts.”
Apple, with the help of this service, might be able to give developers more than the standard 70 percent cut from revenues.
In the meantime, the game-based subscription services have been limited to local efforts that required partnership with telcos. Mumbai-based indiagames, for instance, ran their own version of the game subscription service called Games on Demand. Android phones too had gaming services like Zapak and Gamesbound. Apple is possibly trying to achieve a similar subscription service, although given iPhone’s popularity and a large number of Apple users all over the world, the gaming subscription service might actually come out well done. Although big publishers like Ubisoft have raised their concern over subscription services like Xbox Game Pass and PS Now.
“I actually view subscription gaming as inhibiting our progress, and I’ll give you two examples. One is with PS Now. I think that’s a great technology for getting streaming content to people, but we don’t make the money as a publisher — we don’t make the same amount of money as we would even just putting stuff on sale. So why bother, from a publisher’s standpoint?,” asked Ubisoft’s Chris Early in conversation with GamesBeat.
“The technology is great for a player. I can play anything anywhere instantly! It’s awesome technology, which is inhibited by the business model. So charge a PlayStation Plus add-on to be able to stream any game you own to any device you own. That’s a great service for the player. It’s going to start people adopting that streaming concept in more places. You’ll be able to get to a place where you have more people focused on streaming.
There’s a similar challenge with your business model. We see it works. We’re believers. You’ve capped it with a subscription plan, where publishers aren’t able to make money. On the other hand, you could just sell the game and let people have the five-minute experience while it downloads, or pay you an add-on price to be able to continue to have fast access in many more places. With a subscription, it’s just giving it away.”
Also read:
Apple might release the next-gen of AirPods in the first half of 2019
FaceTime bug allows users to hear a person’s audio before they answer