People are hanging out at the restaurant in the Netflix House Experience Center.
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Netflix It was an early leader in streaming. We then moved on to another important part of our media strategy: merchandising and live events.
This streamer is walt disney company, universal and warner bros discovery It is a destination for consumer product partnerships, special release events, and venues that foster fan engagement.
In January, the company signed its first master license agreement with Squishmallow maker Jazzwares to develop a line of “Stranger Things” products including figures, playsets, toy vehicles, costumes and stuffed animals. Jazwares has existing partnerships with brands such as Pokemon, Star Wars, Peppa Pig, and Hello Kitty.
Most recently, Netflix signed a groundbreaking licensing deal with the toy giant. hasbro and mattel The company will develop toys and consumer products based on the blockbuster hit “KPop Demon Hunter.”
And this month, the company opened Netflix House in Philadelphia, a venue featuring immersive experiences, interactive games, live performances and themed dining. A store with the same concept is scheduled to open in Dallas in December, with plans to open in Las Vegas in 2027.
Entrance to the Netflix House Experience Center.
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These launches showcase Netflix’s strong roster of titles across TV and film, including “Bridgerton,” “The Squid Game,” and “Wednesday.”
“To really build a consumer product strategy, you need a foundation of intellectual property,” Marian Lee, Netflix’s chief marketing officer, told CNBC. “The great thing about working at a place like Netflix is that we are constantly pivoting and looking at new opportunities.”
Netflix is a relative upstart in Hollywood. It’s only in the last decade that we’ve started building a library of original, unique content.
The streamer’s first original series release was 2012’s “Lilyhammer,” a Norwegian crime show about the misadventures of a mafia underboss living in the witness protection program. Its original programming began in earnest with 2013’s “House of Cards.” It’s a political thriller about a ruthless lawmaker bent on revenge after being handed over to the Secretary of State, and is the first series produced exclusively for the streaming service.
“They’re still a young company overall,” Wedbush analyst Alicia Reese said. “They needed to build the content first, and the fandom needed to happen naturally.”
This is one of the reasons the company didn’t launch a consumer products division until 2019, and why it didn’t launch an officially licensed online shop until 2021.
Before that, the streaming giant worked with consumer brands to create T-shirts, mugs, stuffed animals and more. It was primarily about working with licensees, charging fees for other companies to design and manufacture their products, or participating in brand partnerships where there was no exchange of fees.
At the time, these strategies helped Netflix gain more exposure. Netflix is currently in the lead.
“This is a major turning point for us. [Netflix] … We’re pivoting our merchandising efforts,” Reese said. There are also games and games. ”
In addition to Epic Games’ “Fortnite” sale, where players can buy cosmetic items from “Stranger Things,” “Squid Games,” “Wednesday,” and “KPop Demon Hunters,” Netflix is also offering a collection of mobile games based on original content.
Netflix’s live entertainment business is also growing.
Since 2020, the company has launched more than 40 experiences in 300 cities. This includes “Bridgerton” events like the Queen’s Ball, which will be held in nearly a dozen cities around the world in 2022 and 2023 and invited guests to dress up in their finest Regency-era costumes for themed parties, as well as a candlelight concert series featuring music from the show.
Shonda Rhimes, Golda Rocheuvel and cast members visit Queen’s Ball: The Bridgerton Experience in New York on April 30, 2023.
Ilya S. Savenok | Getty Images Entertainment | Getty Images
There was also an immersive experience centered around “Stranger Things,” allowing fans to explore Hawkins Laboratory and other iconic locations from the series in more than a dozen cities. It is currently being held in Abu Dhabi and is scheduled to open in Mexico City next month. A play called “Stranger Things: The First Shadow” will be performed in London’s West End starting in 2023.
Netflix’s merchandise and live events strategy is more than just a way for the company to generate additional revenue beyond streaming subscriptions. This keeps fans focused on the content during show hiatus and between movie sequels.
For example, “KPop Demon Hunters” is not scheduled to receive a sequel until 2029.
“2029 is a long time,” Reese said. “But having merch, pop-up shops, live events, and some kind of fan interaction in the meantime will definitely help keep that interaction going until the next content release.”
This strategy has been part of Disney’s strategy for decades. The company has used its IP as an anchor in theme parks, cruise lines and resorts, as well as in retail, to give fans more touch points with the stories they love and maintain engagement with the brand between film and TV releases.
Netflix is currently adopting this approach, and has carefully considered what types of products and experiences they offer their fans as they move further into this segment.
Bridgerton products include tea sets, elegant pajamas, candles, beauty products and a selection of dog accessories, all featuring delicate pastel hues. The “Stranger Things” product line includes items such as signature Eggo waffles, Dungeons & Dragons sets, ’80s-themed fashion items and bolder, darker color schemes.
“We think of it not only as an extension of fandom, but also as an extension of storytelling,” Netflix’s Lee said of the company’s merchandising strategy. “The KPop Demon Hunter sticker book isn’t a revenue driver for us, but if you’re a kid who loves it… the sticker book might be the perfect thing to get as that kind of low-cost commitment. So for us, across all IP, across all categories, we’re balancing commercial opportunities that we think will drive revenue with things that bring joy to our fans.”
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. With Comcast’s planned Versant spinoff, Versant will become CNBC’s new parent company.
