Why Is Netflix Planning to Open Its Own Permanent Retail Outlets?

Netflix is planning to open two permanent locations in the US by 2025.

The rise of movie streaming rapidly transformed traditional video stores, and e-commerce has significantly impacted prominent retailers, including Nordstrom and Bed, Bath & Beyond, among numerous others. However, it appears that Netflix, a digital revolution success story worth billions, is now venturing into a new realm where others have struggled.

As reported by Bloomberg on Thursday, Netflix is set to embark on a venture into physical retail by establishing a chain of stores, with the initial outlets debuting in the United States before a global expansion.

Netflix has disclosed its intentions to inaugurate its inaugural enduring physical retail establishments, with an initial focus on two locations within the United States by 2025 (although specific locations remain undisclosed). These venues are set to offer a unique blend of experiences, resembling mini-theme parks, encompassing dining options, retail merchandise, and immersive installations inspired by popular titles such as "Squid Game" and "Stranger Things."

Everything we know about 'Netflix House'

Bloomberg reported that the streaming giant plans to open brick-and-mortar retail shops dubbed "Netflix House." The idea is to bring some version of Netflix to the real world. That means merch, of course, and also experiential elements such as Squid Game-inspired obstacle courses and food from shows on the streamer.

"We've seen how much fans love to immerse themselves in the world of our movies and TV shows, and we've been thinking a lot about how we take that to the next level," Josh Simon, Netflix's VP of consumer products, told Bloomberg.

It makes sense that Netflix is trying to capitalize on taking their shows IRL. After all, it's already done it before. The streaming giant has an online merch shop and it's rolled out immersive IRL experiences for Squid Game.