Netflix’s moves with “Stranger Things” show how it plans to leverage its original content into more revenue in the future, beyond streaming subscriptions.
Netflix Inc.’s earnings were received about as well as New Coke’s debut Wednesday, but a show that features Coca-Cola Co.’s failed reboot could show a path to a rebound.
To bounce back in the short term, Netflix has to hope that subscribers were waiting for one specific piece of content to jump on the platform. “Stranger Things,” a tentpole series for the streaming service, made its Season 3 debut on July 4, and Netflix has already said that the new season had record initial viewership.
In its deal with Coca-Cola, the ill-fated New Coke makes an appearance in several episodes, while Coca-Cola rereleased a limited supply of the brief, unpopular version of the soft drink. The third season of “Stranger Things” takes place in 1985 and the show’s creators told the New York Times that the tie-in came naturally, because they were looking for important pop-culture moments and that “it would have been bizarre not to mention it.
Placement partnerships and licensing popular characters and content for videogames, toys or other products is a strong long-term bet for better returns from the mountains of cash Netflix is spending on content right now. The company hired a Disney executive to lead such efforts late last year.
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