Subscription-based streaming network Netflix recently announced that it is opening an online store, Netflix.shop. The new store allows Netflix to take advantage of the popularity of its offerings and the rise in ecommerce.
Why Is Netflix Opening An Ecommerce Shop?
During the pandemic, both online shopping and streaming subscriptions saw significant growth. Additionally, Netflix fandoms have been excited by partnerships and licensing agreements with retailers that offered fun, themed products, including fashion and lifestyle items. For example, the “merchandising bonanza” around the season three release of Stranger Things included deals with “Coca-Cola, Schwinn and Target to bring various branded merchandise to shelves and online shops alike,” reported Kelsey Sutton for Adweek. Walmart, Amazon, H&M and Sephora also partnered with Netflix in recent years to create and sell products for Netflix TV shows and films.
“We’re thrilled to give fans a new way to connect with their favorite stories, and to introduce them to the next wave of artists and designers who embrace the power of storytelling in all its forms,” said Josh Simon, Netflix VP of Consumer Products. The Netflix store is also sharing the stories and history of its merchandise creators on the Netflix.shop website. Leveraging the narratives around the designers to create excitement for the products is part of Netflix’s marketing approach, with Simon explaining that Netflix.shop is “an exciting new destination combining curated products and rich storytelling in a uniquely Netflix shopping experience.”
What Will The Netflix Ecommerce Shop Sell?
For now, the store is selling an assortment of limited-edition items ranging from hoodies to jewelry. Having an owned-and-operated ecommerce platform allows Netflix to create demand for unique, novelty items and special drops that align with big news around its TV shows and movies. However, Netflix will continue to sell merchandise through major retailers and brand partnerships. “The goal of Netflix.shop is to try to create cachet for the company’s originals among superfans, with a secondary benefit of producing incremental revenue for the company,” reports Todd Spangler for Variety. Netflix is planning a collaboration with The Louvre for a collection of items inspired by French caper series Lupin, that will include housewares and other branded merchandise sold on the Netflix ecommerce site.
How Does The Netflix Ecommerce Shop Benefit Advertisers?
At this point, Netflix hasn’t released any details about how advertisers might directly benefit. And, while expanded partnership opportunities could be a possibility, the additional revenue stream from the Netflix shop is also a likely sign that Netflix will continue to stay ad free.
Down the road, branded placement within Netflix programs may represent a more linear opportunity for sales. If Netflix.shop begins selling products displayed within its programming, advertisers could create native shopping experiences that take consumers directly from watching to buying. Should Netflix choose to take this more robust approach with the Netflix shop in the future, advertisers may finally be able to reach and create conversions from the typically walled-off Netflix user.
Are You Looking For New Ways To Reach Targeted Audiences?
Digital Media Solutions® (DMS) is a leading technology-enabled, data-driven digital performance advertising solutions provider connecting consumers and advertisers. Contact DMS today to learn how our first-party data asset, proprietary technology and expansive media reach can help you connect with high-intent consumers.
Additional DMS Insights Articles About Streaming Services:
- Who's Winning The Streaming Wars?
- Apple And Disney Now Major Players In The Streaming Wars As The Competition Heats Up
- Bundled Subscriptions Becoming More Popular With Brands And Consumers
- What’s Gen Z Watching, And How Does It Impact The Future Of TV
- NBC Universal Checkout Platform: Just The Facts
Additional Digital Advertising Resources
- On-Demand Webinar: How to Engage the Digital Window Shopper
- Ecommerce Advertising Solutions With The DMS Performance Ad Market
- How Advertisers Can Rely On Push Marketing To Lower Cart Abandonment
- DMS Success Story: Testing And Iterating Creative And Placements To Engage Retail Consumers
- DMS Success Story: Utilizing DMS Expertise For Campaign Optimization