How Netflix Is Taking a Page From Disney's Parks Playbook

Trending 3 weeks ago

Key Takeaways

  • Netflix announced plans earlier this week to unfastened 2 imperishable "Netflix House" acquisition venues, arsenic nan institution looks to turn its business beyond streaming.
  • Netflix has created immoderate 50 unrecorded experiences crossed nan globe successful caller years, and nan move expands its footprint successful experiences.
  • With Netflix Houses, nan streaming elephantine emulates competitors pinch successful taxable parks for illustration Disney and Comcast's Universal.
  • Disney CEO Bob Iger said nan company's maturation successful nan astir caller 4th was driven "in ample part" by maturation successful its experiences segment.

As Disney (DIS), Comcast (CMCSA), and different intermezo conglomerates activity to drawback up to Netflix's (NFLX) streaming dominance, Netflix is taking steps to grow its business by pursuing rivals' parks occurrence pinch its ain experiences spaces.

Netflix said Tuesday it plans to unfastened two imperishable "Netflix House" intermezo venues successful shopping malls successful Dallas, Texas, and King of Prussia, Pennsylvania by adjacent year. The locations will person themed experiences centered astir celebrated Netflix shows for illustration "Bridgerton," "Stranger Things," and "Squid Game," on pinch stores filled pinch Netflix merchandise and restaurants.

Expanding Netflix's Business Beyond Streaming

Netflix has created dozens of different impermanent experiences themed astir nan streamer's astir celebrated shows successful a number of locations astir nan world, and nan imperishable Netflix Houses raise its stake connected nan unrecorded acquisition market.

"I deliberation it's a bully thought connected their part, I deliberation group want experiences, nan experiential system is soaring," IMAX CEO Richard Gelfond told CNBC's "Last Call" astir nan Netflix House announcement earlier this week.

However, Gelfond suggested Netflix could look difficulties trying caller things that aren't portion of its "core competencies," and said that moving retail, restaurant, and merchandising operations require "a different accomplishment set" than building a streaming company.

How Do Netflix Houses Compare to Disney, Universal Parks?

While nan Netflix Houses won't person rides for illustration Disney aliases Comcast's Universal taxable parks, nan streamer's stake connected nan money-making capabilities of in-person experiences suggests Netflix hopes to emulate nan occurrence of Disney and Comcast's experience-based gross streams.

Netflix is keeping immoderate parts of nan accepted taxable parkland acquisition by retaining unit and edifice aspects, but opting for themed experiences astir its ain shows alternatively than amusement parkland staples for illustration roller coasters. The Netflix Houses will besides beryllium "over 100,000 quadrate feet" according to nan company's release, a fraction of nan size of outdoor taxable parks for illustration Disney's, which tin screen hundreds of acres.

Moves Comes arsenic Demand Grows for Experiences

In caller quarters, Disney and Comcast person some expressed optimism astir nan gains they person seen successful business astatine their respective parks, amid increasing request for experiences for illustration concerts and taxable parks.

Disney CEO Bob Iger said successful an net telephone successful March that nan company's maturation successful nan 4th was driven successful ample portion by its experiences conception of taxable parks and cruises arsenic good arsenic its streaming platforms, and said nan institution is "turbocharging growth" successful nan experiences division.

More
Source investopedia
investopedia