The phrase ‘bigger is better’ has never been more appropriate than in the case of PlaySide Studio’s (ASX: PLY) latest venture. After months of negotiations, the Melbourne-based independent games studio has managed to sign a deal with global streaming juggernaut Netflix to develop and release its new game titled Dumb Ways to Survive (DWTS) on the Netflix Game platform, based on the intellectual property of the studio’s famous survival-based mobile game Dumb Ways To Die.
Today’s announcement was preceded by the team at PlaySide acquiring the popular Dumb Ways to Die franchise from Metro Trains Melbourne for $2.25 million. Once considered to be quite an investment for such a small studio, the deal paid off in spades when they began the development ofDWTSinto an interactive game (+ mention the NFT $8m sale).
“Since acquiring the Dumb Ways franchise in October 2021, PlaySide immediately began reengaging with fans and looking for the right opportunities to enhance the brand and deliver new content to a growing audience. We are thrilled that Netflix sees value in this IP and we are excited to join forces with them in bringing Dumb Ways to Survive to its subscriber base,” said PlaySide CEO, Gerry Sakkas.
The premise behind DWTS is simple: take the same beloved characters and catchy tunes from the original game and apply them to a new environment where the players must navigate their way out of danger in order to survive.
Streaming giant Netflix had always been a staple of movie nights and lazy afternoons, but the Company was always looking for new ways to stay ahead of the curve after they saw a massive slowdown in new customers and escalating competition from streaming rivals. To keep up with this demand, the service launched Netflix Games along with a new line of properties in November 2022. Already onboard are titles like “Stranger Things: 1984”, “Card Blast”, “Teeter Up” and with today’s latest deal, PlaySide’s DWTS game.
To cover the costs associated with releasing and supporting the game after the launch, PlaySide agreed upon a deal that would provide them with milestone payments throughout development while also providing players with live support post-launch.
This move is exciting for both companies involved and also for developers around the world who can look at this partnership as an example of how strategic partnerships with big players can help increase their visibility and potential opportunities As one of the most popular streaming services in the world, PlaySide partnering with Netflix provides unparalleled exposure for their titles.
Outlined in PlaySide’s annual report released on 24 October 2022, the Company has clearly been making strides Revenue for the period increased by 60% from $4 million to $6.5 million year-on-year, and 6.5% quarter-on-quarter. The increase was driven by a rise in Work-for-Hire revenue to $4.1 million, offsetting a 14% decline in Original IP revenue to $2.3 million. Cash receipts also rose to a total of $7.2 million, resulting in a net cash position of $34.7 million.
On the operational front, Playside experienced great success with global launches for its ‘Legally Blonde’ game on Apple products along with soft launches for ‘Dino Warfare’ and its ‘Idle Recycle’ game. Additionally, Playside launched its own publishing division appointing Benn Skender as Chief Strategy Officer, adding yet another layer of success to their accomplishments throughout 2022.
PLY shares have otherwise kept tracking sideways since June 2022 after falling 60% to $0.50 from its highs of $1.42 in February. Today’s announcement saw shares rally 6.72% to sit on $0.635 at the time of writing.
Trading Desk Assistant at Emerald Financial
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