The advent of movie streaming brought a swift end to brick-and-mortar video stores. E-commerce and online shopping have taken bites out of major retailers like Nordstrom and Bed, Bath & Beyond, among many, many others.
But it seems that streaming giant Netflix, a company worth billions for capitalizing on the digital revolution, wants to try to succeed where many others have failed.
Netflix is aiming to launch a network of stores, according to a Thursday report from Bloomberg, with initial locations opening in the U.S. before the company expands globally.
The decision has many online raising their eyebrows, including Blockbuster. The video rental chain used to have thousands of locations across North America at its peak, but in 2014, it was forced to close all its corporate-owned stores after declaring bankruptcy amid competition from, well, streamers like Netflix.
Today, only one Blockbuster store remains, operated largely as a tourist attraction.
Needless to say, Blockbuster knows all too well the challenges that come with operating physical stores in this consumer climate.
“Oh boy… Should we tell Netflix how this ends?” the Blockbuster brand posted on X, formerly Twitter, in response to the streamer’s plans.
There are few details about what Netflix’s foray into brick-and-mortar stores will look like. Josh Simon, Netflix’s vice-president of consumer products, told Bloomberg the locations will sell merchandise and themed food and offer immersive experiences based on Netflix shows.
The first two locations, dubbed Netflix House, are set to open in the U.S. in 2025, though the cities have yet to be chosen.
The venues will also have rotating installations where fans can attend ticketed shows inspired by popular series. Food and drinks at the in-house restaurant will range from casual, diner-style offerings to more high-end dining.
Simon declined to provide specifics, however, as “final decisions haven’t been made,” Bloomberg reported.
As for merchandise, no details were given, so it’s unclear if fans will be able to buy DVDs or physical media of their favourite Netflix shows and movies.
“We’ve seen how much fans love to immerse themselves in the world of our movies and TV shows,” Simon told Bloomberg. “And we’ve been thinking a lot about how we take that to the next level.”
Netflix has experimented with pop-up fan experiences and marketing events in the past, including The Queen’s Ball: A Bridgeton Experience, a gala that travelled to several cities inspired by the hit period drama. Earlier this year in Los Angeles, Netflix opened a pop-up restaurant serving food and drinks created by chefs who starred in Netflix cooking shows.
But it remains to be seen if there will be enough interest in these fan experiences to sustain permanent locations. Observers online aren’t confident.
One X user wrote: “Man imagine if you were one of the incredibly talented people laid off by Netflix over the past few years only to learn that they’re about to light ten thousand times your salary on fire to ’embrace brick and mortar’ in 2023.”
Netflix laid off 150 people in May 2022, then culled another 300 jobs a month later in the face of slowing growth.
Another user joked that in-person Netflix locations run the risk of reinventing the movie theatre.
But some predict that these Netflix stores will be less like Blockbuster and cinemas and more like Disneyland, since the company’s focus seems to be more centred around providing fan attractions.
“It sounds like Netflix is trying to do what Disney does,” NPR TV critic Eric Deggans said. “But Disney has been doing what Disney does for a very long time. And the amount of money Netflix would have to spend to actually compete with them doesn’t make any sense to me.
“I think it’s some kind of weird experiment that they probably will not do for very long.”
Others seem optimistic that Netflix can hack it in the real world.
“If Disney and NBC Universal can operate theme parks I give Netflix a decent shot of succeeding with this venture,” Rick Munarriz, a senior media analyst, said in a statement to NPR. “Success in the real world through location-based entertainment is the spoils of victory for a leading tastemaker.”
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