Just in time for the holiday season Netflix has inked a deal with Walmart, helping the streaming giants push to sell merchandise. Netflix will sell merchandise from several of its most popular shows on Walmart's website. It is the largest deal the streaming service has ever made with a national retailer.
The retail giant will sell toys from Netflix's kid's shows like Waffles + Mochi, CoComelon, and Ada Twist, Scientist.
But not all the merchandise is aimed at children. The retailer will also offer products for an older audience. Expect baking kits from the reality franchise Nailed It!, a Stranger Things Bluetooth cassette player, and t-shirts from its breakout hit, Squid Game. Many of the items sold will be exclusively at Walmart. The partnership starts with seven shows but could expand over time, Netflix said.
Netflix already licenses its intellectual properties to manufacturers who produce products. These products include T-shirts, stickers, and dolls. They are already available online from several retailers, including Netflix's own shop.
This deal with Walmart creates a dedicated area of Walmart.com for Netflix merchandise, the Netflix Hub. This is the first online storefront that Netflix has created with a national retailer.
"We want to continue to meet fans wherever they are, whether that's through our biggest online marketplace at Walmart, or the more boutique and curated Netflix shop," Josh Simon, Netflix's vice president of consumer products, explained the reasoning of the move. Simon told the Wall Street Journal that revenue wouldn't be the only measuring stick of success for the venture. "The real value is in reinforcing fan love for the shows and films they see on Netflix," he said.
Per Vulture, Netflix chairman, and co-CEO Reed Hastings doesn't expect e-commerce to bring in a significant amount of revenue for the company. The venture is more focused on getting people interested in the company's streaming originals.
Netflix is the world's largest streaming service with more than 200 million subscribers worldwide. The streaming giant is facing increasing competition from services offered by Disney, Apple, and Amazon. The partnership is an opportunity for the streaming service to attract new customers.
The retailer has been focusing on associating with more upscale brands like Gap Inc.
Sources: Wall Street Journal, Vulture