Netflix Challenges Disney With Immersive 'Netflix House' Experiences!

Netflix Inc NFLX looks to launch immersive venues named "Netflix House" where enthusiasts can delve into their beloved TV show universes, shop for merchandise, savor themed cuisines, and potentially engage in activities like a Squid Game-inspired obstacle course. 

Josh Simon, Netflix's VP of consumer products, revealed that these establishments will offer shopping, dining, and live events. 

The initial two venues will likely open in the U.S. by 2025, with plans to take the idea global after that, Bloomberg reports.

Also Read: Netflix Analyst Re-Rates Stock Ahead of Q3 Earnings Citing Margin Concerns and Leadership Changes

Previously, Netflix has dabbled in temporary fan-centric events, hosting 40 such experiences in 20 global cities. 

Notable mentions include "The Queen's Ball: A Bridgerton Experience" and a temporary Netflix store in Los Angeles. 

However, "Netflix House" marks its first foray into permanent locations, underscoring its intensified focus on promoting its content and fostering dedicated fan communities.

Historically, media entities like Walt Disney Co DIS have leveraged theme parks, merchandise, and other consumer goods to amplify their characters and boost revenue. 

While this approach is relatively novel for Netflix, the company perceives "Netflix House" more as a promotional tool than a significant revenue stream initially.

Josh Simon emphasized the company's recognition of fans' eagerness to engage with Netflix content deeply. 

The "Netflix House" will feature ever-changing exhibits, ticketed events inspired by hit series, and eateries showcasing dishes from their reality shows. 

While the food offerings will span from quick bites to upscale dining, the specifics remain under wraps. Netflix has previously ventured into themed dining in LA and retailed "Stranger Things" merchandise in various cities.

In July, Netflix reported second-quarter revenue growth of 3% year-over-year to $8.19 billion, which missed the consensus of $8.29 billion. The company reported quarterly earnings of $3.29 per share, which beat consensus of $2.85 per share. 

Analyst Rating: Wolfe Research analyst Peter Supino downgraded Netflix from Outperform to Peer Perform.

Price Action: NFLX shares traded lower by 1.44% at $356.10 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.