Netflix moves into e-comm, challenges Disney with branded merch

The shopping site gives Netflix a new way to bring in cash after a quarter in which its explosive growth showed signs of slowing down in the increasingly crowded field of streamed entertainment, one that now includes a formidable rival in Disney+.

Unlike some of its competitors, including Hulu and HBO Max, Netflix, the home of Bridgerton, The Witcher and The Crown, does not have commercials, relying on the monthly fees paid by its more than 200 million subscribers around the world. That’s where Netflix.shop comes in. The site is the next logical step for a company that has gotten serious about the retail business in the last year, an effort led by the executive Josh Simon, who runs Netflix’s consumer products division. Simon joined the company in March 2020 after working in a similar role at Nike. On his watch, the consumer products team has grown to 60 people, from 20, and Netflix has made deals with Walmart, Sephora, Amazon and Target to sell clothes, toys, beauty kits and housewares, among other items, related to its series and films. Netflix created the online store with the tech company Shopify. Simon described it as a “boutique,” adding that products tied to only a few Netflix shows will be included in its first few weeks.

Lupin, the buzzy French crime show about an expert thief, will be front and center at Netflix.shop later this month. In addition to baseball caps, T-shirts, hoodies and sweaters, the Lupin-related merchandise will include throw pillows ($60 apiece) and a side table ($150), all of it designed and produced in collaboration with the Louvre museum.

Two Netflix anime series, Eden and Yasuke, will be featured in the store on its first day. A clock based on the Yasuke character Haruto, created in collaboration with the artist and designer Nathalie Nguyen, is priced at $135. There is also a Yasuke clothing line, which came about through a collaboration with the streetwear label Hypland and its founder, Jordan Bentley. “He’s part of that drop culture, where kids are lining up on Fairfax Avenue in LA to buy his products,” Simon said.

In the coming months, products tied to other Netflix shows, including Stranger Things and Money Heist, will appear on the online shelves. The demand seems to be there: Thousands of fan-made products related to the Netflix documentary series Tiger King, including candles, face masks and greeting cards, are on sale at Etsy and similar sites, without the company’s blessing. Netflix has capitalised on hits like Bridgerton, a period romance from the producer Shonda Rhimes, which debuted in December. Working with the clothing company Phenomenal, Netflix started selling $59 sweatshirts inspired by the show.

The line includes a lavender hoodie with the words I Wish to Be Entertained across the front, as well as a crew neck with the message, I Burn for You. Tech companies are now getting into the act as they look for fresh revenue streams. Google recently announced plans to open a New York store, and Instagram has ramped up its in-app shopping features. Sales of licensed products tied to shows, films and characters were about $49 billion in the United States in 2019, and $128 billion globally, according to the most recent study of the industry by Licensing International, a trade group. The biggest player, by orders of magnitude, is Disney.

The writers are journalists with NYT©2021

The New York Times