If you’re one of the almost 100 million subscribers of Netflix, you may be excited to hear that this 10th largest Internet company in terms of revenue is expanding its sales to brick-and-mortar stores, hoping to sell merchandise based on its most popular shows, according to RBC’s Mark Mahaney.
“We view this as a highly reasonable step by Netflix to further promote and market its original content and other offerings,” said a note from analysts led by Mahaney to Business Insider.
On average, consumers are exposed to 3,000 ads and promotional messages every day, but Netflix shows are gaining so much popularity that its show-based merchandise should practically sell itself.
This ambitious effort would mean that Netflix is following the footsteps of former media entertainment companies such as Disney and Time Warner who have found countless ways over the years to turn a popular show or movie into high-selling merchandise.
A store with an Internet presence instead of a physical retail store space might earn $100,000 per year or more in profit with comparable sales, but Netflix is implementing a seemingly fool-proof method by establishing a widespread Internet presence first.
As of now, these plans are still in their developing stages, and Mahaney claims that this potential is still a long way down the road. However, Netflix is already testing the idea by selling “Stranger Things” merchandise at Hot Topic, and it looks to be expanding in the area.
“We see this as a development that signifies the coming of scale of an increasingly ubiquitous global entertainment company,” RBC wrote.
Back in February, Netflix posted a job opening for a licensing executive to take charge of various merchandise. And while approximately 1.1 trillion in sales in 2011 were web-influenced, Netflix is flip-flopping and hopes that its brick-and-mortar sales will keep subscribers interested in its original programs.
“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,” the job listing said. “We want licensed merchandise to help promote our titles so they become part of the zeitgeist for longer periods of time. Last but not least, merchandising and promotion will be used as a marketing tactic to capture member demand and delight our member community.”
Perhaps this grand idea stemmed from a comment made last year by Netflix content boss Ted Sarandos — “Kids carrying the backpack sells the show.”