For those of us who were kids in the early aughts, the Disney Store was the stuff of legends. Rows and rows of toys and games, all branded with our favorite cartoon characters and franchise leads. For the entertainment brand and film studio, expansion into retail locations once seemed like an unorthodox idea, but it quickly turned out to be one of its most profitable experiments.

Considering that history, is it really so strange that Netflix would attempt to follow suit? For a new generation of shoppers, the streaming service hopes to become its own purveyor of dreams, as reflected in a new and compelling set of retail strategies. Notably, in the wake of the massive success of several of its shows, including Strangers Things andBridgerton, Netflix launched an online marketplace in 2021. On Netflix.shop, fans could find and purchase a rotating selection of licensed goods from in-house productions. The merchandise included in this initial launch was carefully curated, with an eye to matching prominent clothing and product trends. Featured items included streetwear designs and decorative objects, created in collaboration with the Louvre.

Buoyed by the success of this online venture, Netflix began introducing products from other popular shows, including Squid Games and Emily in Paris. The company also undertook adjustments and revisions to its supply-side model, such that it strategically launched new products on a schedule that aligned precisely with the launch of specific series or episodes, to capitalize on the success of each property.

As we noted previously in these abstracts (see “At Home with Netflix: Introducing New Dining and Shopping Complexes,” June 2024), another new retail expansion also is planned: Netflix has announced the opening of two retail brick-and-mortar locations, in Dallas and Philadelphia. Each Netflix Shop will take up about 100,000 square feet of space to offer a combination of branded experiences and products. Combining the appeal of a theme park with the offerings of a traditional store, the Shops will feature replicas of popular sets and allow shoppers to participate in activities inspired by the series. Each shop will also include a food court area.

Such experiments have, like most new ideas, prompted some skepticism about their potential profitability. Notably, the popularity of Netflix franchises tends to be relatively short-lived, compared with the staying power of conventional media, like Disney movies and characters. But in a time when competing streamers are churning out more original content than has ever been available to consumers, Netflix has found a creative and potentially game-changing way to diversify its holdings.

Discussion Questions

1. What might the next stage of Netflix’s retail expansion look like?
2. Have other content-providing platforms expanded into the retail space lately? How do their strategies compared with Netflix’s?

Sources: Michelle Evans, “Why Content Platforms Like TikTok and Netflix Are Turning to Retail,” Forbes, February 3, 2025; “Netflix and Shop: Online Store Offers Limited-Edition Merchandise,” Reuters, June 10, 2021; Tom Ryan, “Is Netflix About to Replicate Disney’s Product Merchandising Success?” RetailWire, June 14, 2021