Streaming platform Netflix has gone from strength to strength in recent years as increasing numbers of users connect with media via the service. In Q2 of 2020, there were 192.95 million paid subscribers to Netflix across the world, 72.9 million of whom were based in the United States. By the end of 2020, this worldwide number had risen to 203.67 million, and this is expected to have risen further throughout 2021 as more subscribers join from around the globe.
In an effort to build on this growth, and to capture a more diverse stream of income, Netflix was working to expand their services in 2021. In July, the streaming provider announced that it was planning to include video games in its services, drafting in former Electronic Arts and Facebook executive Mike Verdu to guide this expansion.
This is certainly exciting news for hardcore gamers and casual fans alike, but what about the world of online gambling? Could Netflix’s product diversification see them entering the online betting sphere, and could other streaming providers also make moves in this direction in the coming years?
The Potential of Streaming Platforms in the iGaming Environment
There is certainly a great deal of potential for iGaming platforms if this medium does become a fixture in the global streaming market.
A growing client base for online betting
The global online betting market is growing rapidly. Studies suggest that the worldwide market will be worth $92.9 billion by 2023, almost double the 2021 value of $59 billion. While the coronavirus pandemic has certainly accelerated this shift in the past couple of years, we can expect the pivot toward online gambling and betting to become more permanent as gamers grow to value the convenience and ease of enjoying their favorite gambling products in their own homes. If streaming platforms do enter the betting sphere, they will find that there is already a well-developed market waiting to be tapped.
Existing hardware and software infrastructure
In order for iGaming streaming to be successful, customers need to have the equipment and software to support this. Statistics showed that there were 1.7 billion households around the world with paid TV services in 2019, up from 1.67 billion in the previous year, and this figure is expected to grow further in the coming years. The digital and physical infrastructure is already in place to support gaming streaming on a large scale.
Global regulation and licensing
Regulation and licensing are always key concerns for online gambling providers. However, the worldwide licensing landscape is already well-developed and should support the rollout of iGaming streams. Data from Slotegrator shows that 32 countries allow local operators to provide gambling products on license, and 32 countries provide licenses to foreign gambling companies operating within their jurisdiction. Meanwhile, 93 countries do not impose any licensing or prohibition at all. This provides ample scope for gambling streaming platforms to reach a global market.
As the online gambling market grows, it makes sense for providers to diversify their product offerings to secure a greater market share. Streaming platform services could provide the answer that these providers are looking for.
