Netflix launches an online merch shop — here's why it could be pulling a Disney

Lupin Season 2 just dropped... Next up: Lupin pillows ($60 each). Last week, Netflix launched Netflix.shop, an ecommerce site for flix-branded merch. Think: caps, hoodies, jewelry, and even furniture related to your favorite shows. The shop will sell exclusive, limited-edition merch for shows like Stranger Things, Money Heist, and The Witcher.

• Old flix: Netflix already has licensing deals with retailers for apparel based on its original shows (think: "Hawkins Lifeguard" tee at H&M).
• New flix: This is Netflix's first owned-and-operated retail shop to sell products directly to flixers. It could become a top destination for super fans.

Trying to beat the DPF blues... DPF = demand pulled forward. Netflix saw explosive growth last year, as we hibernated with laptops and ramen. But that led to subscription saturation (#subscripturation) — and slowing growth: Netflix added less than 4M subs last quarter, compared to nearly 16M in the same quarter of 2020. And Unlike Hulu, HBO Max, and others that show commercials, Netflix relies almost purely on subscription bucks.

• Merch is a new way to boost sales in the face of slowing growth — and growing rivals. Disney+ has already crossed 100M subs (half a Netflix).
• Merch potential: Global sales of licensed products tied to shows, movies, and characters were $128B in 2019 — and $49B in the US alone. The merch master = Disney.