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We’ve all heard that streaming killed the cable bundle. Could it also stand to revive a vestige of days gone by?
If Netflix has its way, it just might. The streamer’s upcoming experiential retail activations are looking to breathe life back into the mall—while getting people even more hooked on Netflix programming.
The activations, dubbed Netflix House, are due to open two initial locations next year at malls in Pennsylvania and Texas, with the goal of bringing some of its highest-performing franchises to life inside shopping centers.
“At Netflix House, you can enjoy regularly updated immersive experiences, indulge in retail therapy, and get a taste—literally—of your favorite Netflix series and films through unique food and drink offerings,” Marian Lee, Netflix’s chief marketing officer, said in a blog post about the initiative. “Netflix House represents the next generation of our distinctive offerings.”
Netflix House is coming at a time when malls have seen an overall decline in foot traffic and as consumers increasingly look for IRL experiences, Steve Pearce, managing director at the creative and experiential agency Love, told Marketing Brew.
For streamers like Netflix that want to win customers over every month, in-person events can provide opportunities to sell consumer products and incentivize customers to build deeper connections with their favorite shows, all of which could encourage them to continue watching—and paying subscription fees.
“Experiences can be hugely powerful as ways of driving lots of softer things like loyalty and brand preference, but they could actually really drive income as well,” Pearce said.
Netflix declined to make an executive available for this story.
Rubbing shoulders
Consumers are increasingly interested in “competitive socializing,” Pearce said, and Netflix House could benefit from the trend. Demand for IRL social experience is growing, and as some consumers find themselves less inclined to drink alcohol, it’s changed where people want to convene, Pearce told us. That’s meant an increased interest in experiences like escape rooms, where people can compete with each other or participate in activities.
“We’re all doing different things like golf and darts and cricket and all kinds of different experiences in what used to be shopping malls,” he said.
That change in consumer preferences could be valuable for shopping malls, which have faced challenges in recent years as consumers increasingly shop online (looking at you, Amazon Prime Day) and due to pandemic-era restrictions that many brick-and-mortar locations never really recovered from. In the midst of those challenges, any potential tenant—whether that’s a streaming brand or a fast-fashion company hosting a pop-up—could be welcome.
Both malls and Netflix are eager to keep customers coming back. To that end, Netflix House, which plans to initially roll out with experiences tied to franchises like Stranger Things, Squid Game, and Bridgerton, will regularly update locations with new experiences, the company said.