Netflix Beyond Streaming: Building a Franchise Empire
Netflix is undergoing a significant transformation, moving beyond its core subscription-based streaming service to cultivate a diversified franchise model. This shift is driven by market saturation, increased competition, and a need for new revenue streams, mirroring strategies employed by established entertainment giants like Disney.
From Subscriber Growth to Franchise Development
For years, Netflix’s success was primarily measured by subscriber numbers. However, with increasing competition from platforms like Disney+, Amazon Prime Video, and Max, and challenges related to password sharing, the company is now focused on extending the lifespan and value of its content through merchandising, licensing, and brand partnerships. This evolution aims to create lasting connections with audiences beyond initial viewership.
Bridgerton: A Case Study in Franchise Building
The series Bridgerton exemplifies Netflix’s new approach. Following the premiere of its fourth season, the show exceeded 40 million views and reached the Top 10 in 91 countries. However, its impact extends far beyond television ratings. Netflix has leveraged the show’s romantic aesthetic into a multi-faceted business platform through over 35 collaborations with brands like Coty (fragrances), Dove (personal care), and Pandora (jewelry), with the latter’s collections selling out quickly. An interactive Google search was also integrated to enhance fan engagement.
Expanding into Physical Experiences and Products
Netflix is also venturing into physical retail and immersive experiences. Inspired by Disney’s model, the company has opened Netflix Houses in the U.S., offering themed gastronomy, official merchandise, and immersive experiences. Plans are underway to develop attractions based on popular franchises like Stranger Things and Squid Game in collaboration with international entertainment operators. This move responds to a growing demand for in-person events post-pandemic, allowing fans to interact with their favorite stories in tangible ways.
Diversification Beyond Bridgerton
The diversification strategy isn’t limited to Bridgerton. The animated film KPop Demon Hunters demonstrates Netflix’s ability to connect with younger audiences and K-pop fans, achieving over 500 million views and international recognition. This success led to partnerships with Lego for construction sets and toy collections with Mattel and Hasbro.
The Changing Landscape of Streaming Revenue
The shift towards diversification reflects a broader change in the streaming industry. The paid subscription model has reached a peak, prompting Netflix to explore alternative revenue streams. The company’s slogan, “Stories that expand off the screen,” encapsulates this new model, transforming fiction into tangible experiences and converting emotional connection into economic value.
SUNAT Changes Impacting Netflix Subscribers in Peru
In Peru, Netflix, along with other digital service providers like YouTube, Meta, and Google, are facing changes in how taxes are collected. The Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT) issued Resolution No. 000024-2026/SUNAT on February 13, 2026, altering the procedures for collecting the General Sales Tax (IGV) and the Municipal Promotion Tax (IPM) on services from non-resident providers. SUNAT aims to link tax payments directly to the corresponding proof of payment or operation, impacting both businesses and individual users.