The streaming giant wants to open Netflix House, a physical store where visitors can eat, shop and play.
According to Bloomberg, Netflix plans to open the first two Netflix Houses in the US in 2025, and the plans to expand the concept around the world.
It sounds part-theme-park, with a potential Squid Game obstacle course, part-diner, with both fast-food and high-end dining options, and part-clothing-store.
“We’ve seen how much fans love to immerse themselves in the world of our movies and TV shows, and we’ve been thinking a lot about how we take that to the next level,” Josh Simon, Netflix’s vice president of consumer products, told Bloomberg.
It’s not Netflix’s first foray into the physical world. It held previous physical experiences dedicated to individual shows, like Stranger Things: The Experience, The Queen’s Ball: A Bridgerton Experience and Money Heist: The Experience.
These all proved successful, prompting Netflix to launch a two-level pop-up in Los Angeles in October 2022, dedicated to its most popular streaming titles, like Stranger Things, Bridgerton and Squid Game. The store, which remained open until the 6th of January 2023, was an immersive shopping experience that featured life-size versions of Netflix’s most-loved characters.
“Following the incredible success and excitement from our fans for our immersive experiences around the globe, this felt like the most organic next step to continue our growth and bring Netflix’s most beloved shows together in a completely new way,” Greg Lombardo, head of live experiences, Netflix, said at the time. “Celebrating our fans and giving them the opportunity to put themselves in the world of the stories they love is at the heart of what we do, and we’re thrilled to bring this experience to life at The Grove.”
The news comes as Netflix continues to tackle a decline in market share – and as a result, share price. At the end of Q1 2023, its market share was 44.21%, down 5.56% from the same period the previous year. Its subscriber base grew in Q2, 2023, largely thanks to its password-crackdown, but it failed to meet revenue expectations.
The streaming giant has historically relied on its subscription-based model to generate revenue, but as competition heats up in the streaming industry (from players like Disney+, Hulu and Amazon Prime), Netflix is beginning to look at diversifying its revenue streams.
The company is making a push into video games, launching the first tests for its cloud-streamed games, that let you play its titles on a TV or on the web, in August 2023. Its foray into physical stores looks to be an extension of its diversification efforts.