In its core market video streaming service, Netflix is the undoubted number one. Now the company wants to expand its business to other fields as well. And merchandising seems to be a lucrative new income source to support its primary subscription-selling business.
Recruiting for licensing executive
According to reports by Bloomberg, the streaming giant is putting some serious thought into licensing its successful original content. A recent job listing by Netflix indicates that the company is looking to fill a senior manager position for licensing, merchandising and promotion. The new executive is going to look at placing its IPs in books, comics, gaming toys, collectibles, soundtracks, and apparel, as well as to establish partnerships with retailers.
First products launched
Netflix is already experimenting with some first products in collaboration with Hot Topic. T-shirts, mugs, caps and jewelry with “Stranger Things” branding are available for purchase already. In an official posting, Netflix announced: “We are pursuing consumer products and associated promotion because we believe it will drive meaningful show awareness/buzz with more tangible, curated ways to interact with our most popular content. We want licensed merchandise to help promote our titles so they become part of the zeitgeist for longer periods of time.”
Just like Disney
The company has come a long way. It started by sending out DVDs via mail. Now Netflix does not only stream in almost every country in the world. It also massively increased the production of own content. Tapping into the licensing market can be seen as a logical next step. Very likely that Netflix is following in the footsteps of Disney who has perfected the art of turning intellectual property into all sorts of new businesses. And it pays off. Only in the last quarter, Disney’s consumer unit had sales of $1.5 billion.