“Stranger Things” ushers in a new era for Netflix

The original concept for what would become “Stranger Things” was rejected by more than 15 studios before it was reached Netflix List of original programming.

A decade later, the show created, written and directed by Matt and Ross Duffer has become one of the biggest cultural touchstones of the streaming era, and has cemented Netflix not just as a competitor, but as an industry leader.

“People always talk about Netflix and… [say] Our big moment was when we did House of Cards, which was a big deal. “But our real moment was when we made Stranger Things,” co-CEO Ted Sarandos said during the Season 5 premiere of Stranger Things in Los Angeles last month.

“House of Cards was great. It told the world that we were going to make some really good TV,” he continued. “But with Stranger Things, this was much closer to a Star Wars moment. It’s a show, characters that move culture, spawn live-action events, consumer products, spin-offs and sequels.”

Released in 2016, Stranger Things is set in the 1980s and follows a group of middle school students in a fictional rural town in Indiana who must navigate supernatural events after their friend disappears. In the mix is ​​a young girl with psychokinetic powers who has escaped from a secret research laboratory, an alcoholic police chief trying to find the missing boy and a frantic mother.

Now, nearly a decade later, the fifth and final season is premiering on Netflix.

The first volume, consisting of the first four episodes, premiered over the Thanksgiving holiday and garnered 59.6 million views in its first five days, the largest viewing week for an English-language series on Netflix. It ranks third overall behind the second season and third season of the Korean series “Squid Game.”

In its second week on the platform, the first volume racked up another 23.6 million views, topping the streamer’s weekly charts, and each of the previous four seasons saw weekly viewership increases as fans rewatched previous episodes, Netflix said.

The three-episode second volume of Stranger Things’ fifth season arrives at Christmas, and the finale, just over two hours long, is set for New Year’s Eve. The finale will be available to view in select theaters on New Year’s Eve and New Year’s Day.

Contrary to tradition, Netflix will not be selling tickets for these shows. Instead, more than 500 local cinemas will sell concession vouchers that guarantee seating for screenings. These vouchers can be used to purchase food and beverages at venues. Furthermore, theater owners will keep all revenue from these purchases.

Netflix and exhibitors have fallen out in the past over release terms, with the streamer not committing to long-term runs in theaters for films it wants to be eligible to compete for awards.

“Nothing makes us happier than playing Netflix theatrical movies in our theaters,” AMC CEO Adam Aron said in a statement earlier this month. “We believe this could be a win-win for everyone involved. But since we need to treat our current studio partners fairly, there is still a lot we need to solve to that end. However, there is progress.”

“Stranger Things” created a renaissance in the 1980s, reviving defunct fashion trends, music and even food brands for a new generation.

When the series debuted, Netflix partnered with consumer brands to create t-shirts, mugs, plush toys, and the like, but mostly worked with licensees. This meant that it was collecting fees for other companies to design and manufacture products, or participating in brand partnerships where no fees were exchanged.

In 2019, the company launched its consumer products division and two years later its officially licensed online store.

In conjunction with the launch of the final season of Stranger Things, Netflix has announced dozens of partnerships and collaborations with brands in the merchandise, retail and restaurant sectors.

The streamer has clicked on Lego, Funkosquishmallow, Hasbroand Jazwares and Care Bears to provide “Stranger Things” toys and collectibles for fans of the series. It has clothing and lifestyle deals gap, Nike, CrocsCoverGirl, Zara and Wrangler, among others, and food and beverage collaborations with the likes of Eggo, Doritos, Kellogg’s, Gatorade and Starbucks.

“We’re incredibly excited to partner with so many amazing brands, offering fans — and our fellow nerds — the largest collection of products and experiences in Stranger Things history and one of our biggest campaigns yet as we celebrate the fifth and final season of this universally beloved series,” Netflix chief marketing officer Marian Lee said in a statement earlier this month.

Outside of the retail space, Netflix has delved into the live events space, bringing “Stranger Things” to life through an immersive experience that enables fans to explore Hawkins Laboratory and other iconic locations from the series. It is currently operating in Abu Dhabi, UAE, and will open in Mexico City next month.

There is also a play called “Stranger Things: The First Shadow,” which has been running in London’s West End since 2023 and in New York since this spring.

Additionally, Netflix struck a deal with Epic Games that brought “Stranger Things” elements to the popular online video game Fortnite.

Netflix’s merchandise and live events strategy is more than just a way for the company to generate revenue outside of streaming subscriptions. Industry experts said it helps keep fans engaged with its content during downtime and between film series.

This playbook isn’t unique to Netflix, but it does showcase the streaming service’s maturity. “Stranger Things” isn’t a blueprint for every show or movie on Netflix, but it’s a gold standard for what’s possible.

“[Netflix] “They had some good shows early on (“Orange is the New Black” and “House of Cards”), but it took a couple of whiffs before they came up with “Stranger Things,” Wedbush analyst Michael Pachter told CNBC via email.

“Stranger Things has been a strong IP throughout, and has received a lot of appreciation,” he added.