Netflix is switching back to the physical world by launching “Netflix Houses".
👉 Background: Netflix began in 1997 as a DVD‑by‑mail movie rental service but since then, it’s pretty much become a digital, on-demand service only - with nearly 270 million subscribers worldwide.
👉 What happened: Now Netflix is switching back to the physical world by launching “Netflix Houses". These 'houses' in US shopping centres allow fans to get immersive experiences inside their favourite shows. You can experience it, buy the food and drinks from the show and merch too. Think: drinking tea a la Bridgerton.
👉 What else: This isn’t Netflix’s first physical experience, but it’s the biggest so far and really shows how much Netflix still values the physical world to promote it shows.
💡 Netflix borrowing a page straight out of Disney’s playbook. Like Disney, Netflix has amassed massive fanbases for its original content.
💡Unlike Disney, Netflix hasn’t managed to turn that into a whole separate business division yet. Think: monetising characters from shows like Bridgerton, Squid Game and Stranger Things.
💡Look at Disney’s cash-cow, Disneyland, for inspiration. It has generated over $32 billion USD in revenue in the last financial year. Or Mattel, who turned a popular physical product like Barbie, into a movie-screen superstar, generating more than $1.4 billion USD in box office revenue.
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