Netflix buys a16z-backed avatar platform to boost TV gaming

Netflix has acquired Ready Player Me, an Estonia-based avatar creation platform, as it intensifies its focus on games played on TV.

The deal’s terms were not disclosed.

Ready Player Me, which previously raised US$72 million from investors including a16z and Plural, will wind down its services on January 31, 2026.

After the acquisition, the team of about 20 people will join Netflix, with CTO Rainer Selvet being the only founder moving to the company.

This move is part of Netflix’s broader gaming strategy shift, which includes new hires, the release of party and narrative games for TV and mobile, and interactive features such as real-time voting for live content.

Netflix has made several adjustments to its gaming approach in recent years, including studio acquisitions and changes in leadership.

🔗 Source: TechCrunch

🧠 Food for thought

Implications, context, and why it matters.

Netflix’s avatar ambitions lack clear user demand or engagement data

Apptopia estimates less than 1% of Netflix’s roughly 247 million monthly audience played its games in September 2023, with a peak of 2.7 million users in January 2023 1. This calls into question whether persistent avatars (user profiles that carry across games and sessions) will boost retention while the engagement gap remains.
Netflix did not disclose in its acquisition announcement how many users play games on TV versus mobile 2. Without that, it is hard to judge if TV-focused avatars (digital characters representing a user) solve a real need.
Ready Player Me, an avatar creation platform, says 25,000+ developers used its tools before Netflix’s acquisition 3. The toolset was built for broad third-party use, so shifting into a platform’s closed setup could cut flexibility and appeal.

Game developers face urgent avatar migration needs as Ready Player Me shuts down

Ready Player Me will shut down on January 31, 2026 2. That leaves a migration window for its 25,000+ developer base 3, which gives avatar providers and migration consultants an opening with a displaced market.
Studios along with avatar tech firms can pitch replacements that offer cross-platform avatar portability (one avatar that works across multiple devices and games) 3. Simple integration that preserves the original platform’s benefits will help.
Enterprise software vendors in gaming infrastructure can bundle avatar tools with their dev services. Moving early positions them as full alternatives before the 2026 deadline, when teams will be hunting for replacements.