Netflix tends to promote gaming deals and event spaces

Netflix He was an early pioneer in broadcasting. We later moved on to another important part of the media playbook – promotion and live events.

The streamer has only recently begun to adopt tried and true marketing tactics that have been used for the likes of walt disney company, worldwide and Warner Bros. Discovery For decades: specifically, consumer product partnerships, special release events, and venue destinations that drive fan engagement.

In January, the company closed its first major licensing deal with Jazwares, maker of the Squishmallow toy, to develop a product line for “Stranger Things,” including figures, playsets, toy vehicles, costumes and plush toys. Jazwares has existing partnerships with brands such as Pokemon, Star Wars, Peppa Pig and Hello Kitty.

Recently, Netflix signed a landmark licensing agreement with the gaming giants Hasbro and Mattel To develop games and consumer products based on the hit song “KPop Demon Hunters”.

And this month, the company opened Netflix House Philadelphia, a venue in King of Prussia, Pennsylvania, that features immersive experiences, interactive games, live performances and private dining. A location of the concept is scheduled to open in Dallas in December, and another location is expected to open in Las Vegas in 2027.

The launches showcase Netflix’s robust slate of titles across TV and movies, which also includes “Bridgerton,” “Squid Game” and “Wednesday.”

“You need that intellectual property foundation to really build on this consumer product strategy,” Marian Lee, Netflix’s chief marketing officer, told CNBC. “That’s the beauty of working at a place like Netflix, because we’re constantly focused and looking for new opportunities.”

Netflix is ​​a relative newcomer in Hollywood. Only in the past decade has it built its library of original and owned content.

The series’ first original release was 2012’s “Lilyhammer,” a Norwegian crime show about the adventures of a mafia boss living in the witness protection program. Its original programming really took off with 2013’s “House of Cards,” a political thriller about a ruthless congressman bent on revenge after being passed over for Secretary of State — the first series to be produced exclusively for the streaming service.

“They’re still a young company in the grand scheme of things,” Wedbush analyst Alicia Reese said. “They had to create their own content first and the encouragement had to happen organically.”

This is one reason why the company will not launch a consumer products division until 2019 or an officially licensed online store until 2021.

Before that, the streaming giant worked with consumer brands to create T-shirts, mugs, plush toys and the like. They mostly worked with licensees, collecting fees for other companies to design and manufacture products, or participating in brand partnerships where no fees were exchanged.

At the time, these strategies helped Netflix reap the benefits of more exposure. Now, Netflix is ​​taking over.

“This is a big turning point for [Netflix] “…pivot to promotional efforts,” Reese said. “But I also won’t limit myself to promotional efforts. There are also toys and games.”

In addition to deals with Epic Games’ Fortnite, where players can purchase cosmetic items from Stranger Things, Squid Game, Wednesday, and KPop Demon Hunters, Netflix also has a collection of mobile games based on its original content.

There’s also Netflix’s growing streaming entertainment business.

Since 2020, the company has launched more than 40 experiences in 300 cities. This includes “Bridgerton” events such as The Queen’s Ball, which was held in nearly a dozen cities globally in 2022 and 2023 and invited guests to dress up in their best Regency-era attire for a themed party, as well as a candlelight concert series featuring music from the show.

There was also an immersive experience centered on “Stranger Things” that allowed fans to explore Hawkins Laboratory and other iconic locations from the series in more than a dozen cities. It is currently operating in Abu Dhabi, UAE, and will open in Mexico City next month. A play called “Stranger Things: The First Shadow” has been running in London’s West End since 2023.

Netflix’s merchandise and live events strategy isn’t just a way for the company to generate additional revenue outside of streaming subscriptions. It helps keep fans engaged with its content during downtime and between film series.

For example, a follow-up movie to “KPop Demon Hunters” is not expected until 2029.

“You know, 2029 is a long wait,” Reese said. “But having merchandise or having pop-up stores or live events or some type of fan interaction in the meantime will definitely help keep that interaction alive until the next content comes out.”

This strategy has been part of Disney’s playbook for decades. The company has used its intellectual property as anchors in theme parks, cruise lines and resort locations as well as in retail spaces to give fans more touchpoints for the stories they love and keep them engaged with the brand between film and television releases.

Netflix is ​​now embracing this approach and has been studying the types of products and experiences it offers fans as it delves deeper into the sector.

Bridgerton merchandise includes tea sets, stylish pajamas, candles, beauty supplies and even coordinating dog accessories, all in subtle pastel hues. The “Stranger Things” product line includes items such as specialty Eggo pancakes, Dungeons & Dragons sets, ’80s-themed costume items, and a bolder, darker color scheme.

“We think of it as an extension of fandom, but also as an extension of storytelling,” Netflix’s Lee said of the company’s promotional strategy. “A sticker book for ‘KPop Demon Hunters’ is not going to be a revenue stream for us, but if you’re a kid who likes it… a sticker book might be the perfect thing for you to choose, kind of a low-cost commitment. So, for us, across every IP and across every category, we’re balancing the commercial opportunity that we think will drive revenue and also things that bring joy to the fans.”

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant will become the new parent company of CNBC based on Comcast’s planned spin-off of Versant.

Correction: Netflix House Philadelphia is located in King of Prussia, Pennsylvania. An earlier version misstated the location.