Image Courtesy of Netflix
June 23, 2025
Will Netflix House Display Staying Power in Experiential Retail?
Netflix is turning at least some of its attention away from curating the world’s largest streaming service in order to capitalize on the very same properties, this time in a physical sense.
According to a June 17 news release from the streaming giant, two physical Netflix House locations are slated to open later this year: one at the King of Prussia Mall in Philadelphia and the other in Dallas at the Galleria Dallas. Further, in 2027, a third location is planned to open in the heart of the Las Vegas Strip, as Netflix detailed.
“Spanning more than 100,000 square feet, Netflix House is a permanent, year-round home for fans that brings some of our most popular shows and movies to life — including ‘Wednesday,’ ‘Squid Game,’ ‘ONE PIECE,’ ‘Stranger Things,’ and ‘A Knives Out Mystery’ franchise — through first-of-their-kind immersive story-driven experiences,” the company wrote.
Netflix House Leans Into Gen Z Consumer Desires
In a breakdown of the news provided by Forbes by contributor Clara Ludmir, Ludmir zeroed in on Netflix’s approach of moving beyond the constraints of a competitive streaming content industry into physical spaces — a move also made by Disney, although the latter media company has proven that theme parks and offline play experiences can dovetail quite nicely when paired with popular intellectual properties.
Ludmir also underscored the notion that members of Gen Z — becoming a more influential part of the U.S. consumer base with each passing year — would play a vital part in Netflix House’s success (or failure) as a lifestyle brand.
“Gen Z’s appetite for unique experiences and social-media worthy environments will certainly find a home with these Netflix Houses, expanding the streaming giant’s reach as a cultural brand and universe,” she wrote.
Netflix Bites and Merch Shop There To Satisfy Superfans With Cash To Spend
Toward the tail end of the FAQ provided by Netflix, the question of whether or not the upcoming locations would offer food and beverages was posed: the answer being a resounding yes.
Termed Netflix Bites, these casual restaurants will offer a variety of menu items — likely to be heavily themed around current attractions — in addition to craft cocktails.
A shop featuring a rotating stock of select merch items related to popular Netflix IPs is also said to be part of the overall layout, with the recently trending “Hellfire Club” T-shirt coming from sci-fi drama “Stranger Things” being singled out for mention.
“Having already expanded into retail through fashion and lifestyle collabs, the streaming player is now going all in to grow its brand and stand out amidst fierce competition in the entertainment industry. A question looms: Is this type of entertainment concept the future of theme parks?” Ludmir asked in conclusion.
Discussion Questions
Will Netflix House become a longstanding and profitable expansion of the company’s brand? Why or why not? What potential pitfalls exist?
Will a bet on the spending power of Gen Z, as it relates to their frequently cited desire for experiential retail outlets, pay off? If so, do current macroeconomic pressures on discretionary spending pose a threat?
Poll
Loading …BrainTrust
Michael Mollitor
Consultant, Michael Mollitor Consulting
Alex Walderman
Director of Business Development , SOLUM
Carol Spieckerman
President, Spieckerman Retail
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These will be expensive spaces to run. The trick to making them work is to keep them fresh and to ensure people have reasons to visit repeatedly. This necessitates a fine balance between novelty and retail grounded in satisfying people’s everyday needs. Fortunately, given Netflix pumps out a heck of a lot of content, new ideas and installations should not be an issue.
Netflix House may face significant challenges, such as high operational costs and the risk of not attracting enough visitors to remain profitable. In addition, competition from existing entertainment venues and the need to constantly update attractions to keep them relevant and engaging may put a strain on resources. In the absence of careful management and innovative offerings, it may prove difficult to maintain a unique and compelling experience.
I’ll wish them well, but I have the same question with any company that opens up one or two “flagship” (i.e. physical) locations: now what? It’s not enough to reach more than a tiny fraction of the audience, so they will not, alone be any kind of transformation (of course they may be profitable just judged on their own merits). At this point, I’ll view it – as I’m sure the company itself does – as toe dipping; even if it’s very successful, any kind of mass expansion would be a big, and risky, step.
Netflix’ premise certainly satisfies retail’s “newness, newness, newness” mandate. Whether it has the chops to run retail stores is another matter. Netflix is a master brand that encompasses a diverse portfolio of sub-brands, some evergreen, others more niche. In that sense, it’s no different from other brand companies that diversify through licensing and owned retail and grow through category expansion and experiences. And, like these brands, owned retail is the best way to tell a full, multi-brand, multi-category story rather than relying solely on retailers’ whims. If anything, Netflix is way ahead of the crowd with a ready-made brand portfolio pre-targeted to specific demographics, a massive viewing audience, and a constant social media presence. A ton of risk removed right off the bat.
Netflix’s core competency is creating culturally resonant content, which it now attempts to extend into physical experiential retail. While Gen Z’s preference for experiential spending over material goods is a plus, they also face significant financial pressures that could limit discretionary spending on premium experiences. While parallels to Disney’s business model are informative, Netflix’s content tends to skew more narrowly. It is unlikely to generate the same multi-generational appeal. Additionally, Netflix must establish a cohesive set of operational activities to capture the value it aims to create by transforming its digital storytelling expertise into experiential retail, rather than becoming just another generic theme park attraction.
Once the first visit among friends on social media is unleashed, the experience novelty is over, no need to return – unless Netflix can guarantee well-timed turnover with good in-depth attractions. Just how many experiences can Netflix create with repeat visits at a high level, and for how long?
A previous Stranger Things experiential pop-up traveled thru US cities in 2022, gathering generous Gen Z and Millennial crowds with a strong social media following. It had a limited lifespan, come see it before it closes, which Netflix should consider using this approach too.
Nextflix’s challenge will be refreshing their exhibits frequently enough to encourage fans to travel again and again to experience the latest and greatest. They’ll find the right cadence.
For this to work, Netflix must continue to produce shows people fall in love with. Soon the scales will tip towards content creation being driven by seeded merchandise teasers and theatrical elements designed for live experiences – like a shark jumping at your boat or a bike you ride with an alien in your front basket.
If done creatively and with retail discipline, Netflix House has a lot of potential in experiential retail. The idea appeals to Gen Z’s need for engaging, shareable experiences and strong brand bonds, drawing on my background in merchandising and customer interaction. Strong operational foundations, authentic themed merchandise, well-managed food and beverage offerings, and continuously fresh content will all be essential to success. Netflix may develop into a long-term, viable brand extension if it treats this as more than just an entertainment attraction and manages it similarly to a retail store. If implemented with retail experience, Netflix House has a great chance of becoming a successful, long-term brand extension. Utilizing well-known content, catering to Gen Z’s need for immersive experiences, and handling a variety of revenue streams from merchandise, food, and events. Netflix’s lack of retail experience, high operating costs, the requirement for frequent content refreshes, and the possibility of customer fatigue are drawbacks, though. Netflix needs to approach this as a real, developing retail enterprise rather than merely a fan attraction if it wants to be successful. Though Gen Z will spend more sparingly due to current economic pressures like inflation and tight budgets, their desire for experiential retail can propel concepts like Netflix House to success. Brands need to provide high value, novel experiences, and compelling social appeal in order to attract consumers’ attention.
Netflix House is a bold move to bring popular shows off-screen and into immersive experiences. If done right, it could breathe new life into malls and give people a reason to visit beyond just shopping. The big question is whether Netflix can keep the experience fresh over time. Experiential retail has huge potential, but without regular updates and strong storytelling, the novelty can fade fast.
If Disney and Universal can make massive amusement parks into profit centers, why shouldn’t other entertainment businesses like Netflix House (or HBO Max or Paramount+ or Apple TV+ or Amazon Prime Video) open Location-Based Entertainment (LBE) centers in major markets to attract fans?
LBE is a lower-capital way to bring these closer to where the audience lives.
I’ll go out on a limb and forecast a huge trend here.
I would be skeptical but every time I walk by the Nutella Cafe in Chicago, there’s a line out the door. For Nutella. And the Harry Potter stores don’t seem to be struggling. Netflix is selling the brands within the brands. It’s an interesting platform that can move brands in and out to keep visits interesting and add experiential to their mix. Where’s the free pass with higher tier Netflix subscription?