Netflix is ââdoing all it can to put the licensed products of blockbuster shows like Stranger Things, CoComelon and Squid Game into the hands of consumers ahead of the holidays with a partnership with Walmart.
Walmart created a dedicated online hub to sell Netflix products so that consumers can easily find the clothes and toys as Netflix seeks to increase its retail sales. This is a first for the streaming giant, Netflix, and aims to increase the visibility of merchandise. The dedicated online store does not extend to Walmart brick and mortar stores.
Jeff Evans, executive vice president of electronics, toys and seasonal merchandise at Walmart, said the partnership was a way for the retail giant to stay on top of the hottest trends. fashion, music and toys emerging from hit Netflix shows. The move was smart for Netflix, according to Carol Spieckerman, CEO of Spieckerman Retail. She said the partnership allows companies to each do what they do best.
âNetflix brings a deep understanding of its various properties and fan bases while Walmart leverages its physical and digital scale to blackmail the show. Walmart and Netflix both benefit from the diversification brought by the program. Netflix is ââexpanding into products leveraging the physical and digital presence of a large global retailer. Walmart is gaining relevance and insight with Netflix’s multigenerational fan base, which will likely lead to additional purchases with Walmart, âSpieckerman told Talk Business & Politics.
Analysts said Netflix is ââunder pressure from investors to increase revenue at a time when subscription sales appear to have peaked. This is a way for the streaming company to increase its revenue without increasing subscription prices and without risking losing market share.
Walmart has been selling Netflix products since 2018, but said the new online hub will be a one-stop-shop so consumers don’t have to sift through the millions of items also sold on Walmart.com. Additionally, Walmart has exclusive and first-to-market items with this offer.
âAt Netflix, we love when stories transcend screens and become a part of people’s lives,â said Josh Simon, vice president of consumer products at Netflix. “Walmart has given us the opportunity to deliver a shopping experience that sets a new level of innovation for the consumer entertainment product space.”
Simon said this was the company’s first digital storefront with a national retailer, in addition to a new direct-to-consumer business that Netflix recently launched. Evans said Netflix fans are passionate about their favorite shows and Walmart saw an opportunity to bring these stories home in a new way.
He said the hub will also soon include a crowdsourcing feature called “Netflix Fan Select” that will allow fans to vote for future products they would like to see from their favorite Netflix titles. The articles which collect the most votes will eventually be proposed with the help of supplier partners who will develop them on a large scale.
Spieckerman said the partnership with Walmart was a great move for Netflix. Walmart will give products the attention they deserve online and in-store. The program would likely get lost in the reshuffle in Amazon’s marketplace, not to mention the lack of physical presence. Target would also have been a good choice from a brand awareness standpoint, but from a volume potential standpoint, Walmart was the obvious choice, she said.
Netflix will release its third quarter results on October 19, and analysts expect an additional 3.5 subscribers to likely have been added in the quarter, a 59% increase from the growth of the previous year. With production delays in 2020 and 2021, the streaming giant spent $ 8 billion in cash in the first six months of this year. Netflix (NASDAQ: NTFX) shares rebounded on Monday’s announcement with Walmart to hit an intraday high of $ 636 per share. The stock fell on Tuesday, losing $ 2.10 per share to close at $ 624.94.