The Stranger Things sweater is only the start of Netflix’s merchandise plan
There will be licensing deals for action figures, board games and coffee mugs as the streaming giant learns to sell stuff
Reed Hastings is no fashion icon, but the Netflix chief executive’s garb on a recent video presentation to investors is likely to start a hot new trend.
Grinning sheepishly, Hastings donned a Christmas sweater inspired by the hit show Stranger Things. For $34.99 at Target, fans of the drama about middle schoolers confronting supernatural events can buy the red sweater with white letters and holiday lights. Netflix is betting more and more fans of its shows are going to want such options.
If House of Cards established Netflix as a home for premium TV and Emmy-winning Master of None provided bona fides as a prestige outlet, Stranger Things is the first sign Netflix dreams of being a multifaceted media empire. The streaming-video giant is releasing the second season of Stranger Things in 190 countries on Friday, but the push to make money from the show is just beginning.
In addition to the sweater, Netflix has struck deals for Stranger Things coffee mugs, action figurines and T-shirts at Hot Topic. The streaming service has also licensed three board games, including versions of Monopoly and Clue, and given the show the ultimate sign of a fan sensation in modern Hollywood: a talk show in which fans will discuss the latest episode.
The marketing onslaught is a far cry from two years ago, when Hastings wore an ugly sweater featuring the title character of “Bojack Horseman.” That pullover was only available to attendees of a company holiday party.
“We’re learning how to do merchandising,” Hastings said this month on the webcast. “We’ve got some amazing displays and amazing materials out at Target.”
Netflix has downplayed its ambitions in consumer products as little more than an experiment. Yet experiments at Netflix turn into priorities at the first sign of success. Just look at Stranger Things season one.
Every network in town rejected the initial script by Matt Duffer and Ross Duffer, who had written for the Fox TV show “Wayward Pines.” Netflix at the time was viewed as a home for dark, gritty dramas rather than the childlike wonder of a show inspired by The Goonies and E.T. Netflix decided to roll the dice anyway.
The Duffer brothers were concerned the show would be a failure when they didn’t see any promotion ahead of the debut, they said at a screening earlier this year. What they didn’t know was Netflix was waiting to see how fans responded before committing to spend additional money on marketing.
The show quickly became a sensation, inspiring a pop-up bar in Chicago and earning Netflix’s very first Super Bowl commercial.
The global popularity of Stranger Things has inspired the company to hunt for family and science fiction shows with memorable characters or worlds that can live on in more forms. Netflix is developing The Lunar Chronicles, the adaptation of a popular young adult franchise; Chambers, a teen psychological thriller; and “The Witcher,” based on the popular video game franchise.
Earlier this year, Netflix bought comic book publisher Millarworld, its first acquisition, to develop TV show and movie properties for fanboys and fangirls. And the company hired Jess Richardson, formerly of World Wrestling Entertainment, as its first executive in charge of licensing shows for books, comics and toys.
“Jess is a big-time player,” said Jim Silver, chief executive officer and editor-in- chief of industry publication Toys, Tots, Pets & More. “My assumption is Netflix is very serious.”
Potential new sources of revenue will boost Netflix in the eyes of investors and analysts, some of whom believe the company is spending too much money.
Netflix shares have fallen 3.2 per cent since its quarterly earnings report on October 16. Though the company reported greater subscriber additions than analysts forecast, it also projected spending of $7 billion to $8 billion on programming next year. Netflix has been burning through cash and taking on debt to finance its ever-growing ambitions for original series. BLOOMBERG