It looks like Reed Hastings wearing sweater inspired by ‘Stranger Things’ was more than a fashion statement. In a recent video presentation, the Netflix boss indicated a potential business model by wearing the Christmas sweater inspired by the popular show “Stranger Things.” The fans of the show can buy this sweater for $34.99 at Target. Netflix is expecting the trend to grow and more fans would like to buy merchandise related to their favorite shows.
Shows like “House of Cards”, “Master of None” and recently “Stranger Things” have started establishing Netflix as a multifaceted media empire. The second season of the show “Stranger Things” is just around the corner and will soon be released in 190 countries. The new merchandise promotion is a brand new model by Netflix to make money from its shows. Along with sweaters, Netflix has promoted “Strange Things” coffee mugs, action figures and T-shirts on Hot Topic. The streaming company has also approved three board games like Monopoly and Clue.
Netflix approach towards consumer products is more than interest; it is a fully fledged business model. The company is looking turn these into priorities depending on the success rates. From a platform that was labeled as showing dark and gritty dramas, Netflix has changed its image altogether. Netflix is now spending money on promotion after assessing the initial response from viewers and fans. This strategy has helped Netflix in a big way. Once the shows become popular, Netflix even goes to the extent of promoting them at a pop-up bar in Chicago or the commercials during the Super Bowls.
“Stranger Things” has proved successful for Netflix along with other family and science fiction shows. The characters of shown on Netflix are becoming more recognizable and memorable with a sizable fan following. The company recently bought Millarworld to inspire shows from this comic book publishing house. The company has got Jess Richardson from WWE on board to promote and market exclusive books, comics, and toys. Though many believe that the company is spending too much, the team at Netflix stands firms with its news sources of potential revenue.
The company has witnessed greater subscriptions but at the same time, $7 billion to $8 billion has already been spent on programming. This cost needs to be recovered and merchandising seems a viable option for the company. Disney also makes money from TV but a significant amount of its revenue comes from the money it earns through toys, books and theme parks. Disney spent $4 billion to Marvel Entertainment for rights to shows like “Daredevil” and “Luke Cage”. These shows are now running live on Netflix. According to analysis at Netflix, the board game related to a popular show could well generate $2 million in sales. This is a huge estimation considering that some shows have become global hits. Interestingly, Disney is pulling off its comic book based shows from Netflix and Netflix has acquired Millarworld to compensate this. By the time Disney shows and films actually go off the air, Netflix could own its very own comic book franchise.
Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.