Commentary

Netflix's Out Of House: Going IRL (In Real Life)?

Netflix is going more touchy feely when it comes to its loyal consumers -- starting up entertainment "experience" locations to make strong connections with its growing roster of TV shows and movies.

First stop: Philadelphia. It's the first "Netflix House" -- where fans can interact with favorite shows including "Wednesday," "Stranger Things," "Squid Game," "Bridgerton," "One Piece," "Love is Blind," "KPop Demon Hunters" and many more.

For example, these experiences will allow guests to test skills of character Wednesday’s favorite games, playing a gamified mini-golf or being able to play virtual-reality games.

This also includes screenings of Netflix content in its Tudum Theater and where guests can dine at Netflix Bites, a casual full-service restaurant. Other future locations of Netflix Houses are set to launch in Dallas and Las Vegas.

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For digital-first media companies like Netflix, this seems to follow the longtime theme park/resort businesses that Walt Disney and Universal Studios have had for decades -- part of their consumer-experience efforts to connect with popular TV series, theatrical movie brands and franchises.

But can these very modest entertainment venues offer up the same impact as those bigger multi-acre, park experiences of a Disney World, DisneyLand, Universal Studios Hollywood, or Universal Epic Universe (Orlando)?

The jury is out on that one. This may be part of a broader plan -- especially when it comes in tandem with immediacy of entertainment including live sports programming, live musical events and the like.

One might guess the behemoths that are Walt Disney theme parks -- which have seen a major resurgence since the COVID-19 pandemic -- will continue to breathe life into its growing streamers Disney+, Hulu and ESPN and its still revenue-producing linear TV platforms ABC Television Network, ABC-owned TV stations and cable TV network ESPN.

One major challenge seems to be how diverse these experiences can be for Netflix when it comes to its broad-based programming. The initial Netflix House -- in its Philadelphia location -- may initially seem to skew to young audiences in 100,000 square feet of space.

By contrast, Disneyland, Disney California Adventure and Disneyland Resort comprise a total of 500 acres. And Walt Disney World Resort in Florida? That’s 25,000 acres -- although only about half has been developed for parks, hotels and attractions.

In real life, entertainment experiences can be a significant brand boost.

How much will Netflix entertainment brands gain from all this? It might tease Netflix viewers to sample other content -- expanding the streamer's daily usage among subscribers.

Netflix's main objective will be to push consumers to expand their ease of digital media home and other device access -- getting consumers out of their house and into theirs.

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