Walmart Is Now A Distribution Center For Netflix Merchandise. Will more hookups follow?

 Walmart Is Now A Distribution Center For Netflix Merchandise. Will more hookups follow?

Walmart | Netflix

In an effort to build on an online-only agreement announced in October, WalmartWMT +6.5% will install NetflixNFLX +3.7% hub shops in over 2,400 U.S. stores, offering products from the streaming service’s movies and television shows.

According to Frank Barbieri, vice president of entertainment and digital at Walmart U.S., “The Hub aims to bring fans closer to the series and movies they love.” More music, clothing, souvenirs, games, and seasonal products from all their favourite TV programmes and movies, including “Stranger Things,” “Squid Game,” “The Witcher,” “Guillermo del Toro’s Pinocchio,” “Glass Onion: A Knives Out Mystery,” and more, will be available at Walmart.

walmart netflix

Some of the experts on RetailWire’s BrainTrust recognised favourable precedent and promising future outcomes in a last week online conversation regarding the possibility of putting Netflix merchandise on Walmart shelves.

Ananda Chakravarty, vice president of research at IDC, stated that Netflix provides entertainment to the Walmart customer base with little under 200 million paying users. Netflix is imitating Disney’s product business strategy, which, for those not following, generates over $56 billion yearly. “This is a true win-win,” says Netflix. This is a fantastic chance to promote Netflix Originals’ programming. With well-known artists and programmes that have recognisable cult followings, Walmart is able to take advantage of a lucrative merchandising opportunity. Especially now that they are increasing the value of Walmart+, expanding for Walmart only makes sense.

Professor Gene Detroyer asked, “What is not to like?” There was a Mickey Mouse cartoon once upon a time. Then a Mickey Mouse doll appeared. What follows is history. Compared to purchasing in-store with other stores, the scope of this deal is far wider. Additionally, they offer a perk to attract more viewers. The action is an illustration of a real domino approach for a business that is growing.

According to Carol Spieckerman of Spieckerman Retail, “The Netflix hookup is a normal licencing scheme, yet Netflix gives an entire portfolio of titles to Walmart with one deal.” “The initiative enables Walmart to draw customers from a variety of demographics and appeal to a wide range of fan bases.” Without Walmart doing anything, Netflix will promote the initiative through its continuing outreach and events. Overall, a great deal.

Seasonal product releases will keep popular trends available to clients all year long, according to Mr. Barbieri.

Beyond sales, Walmart’s addition of Netflix in-store stores could increase foot traffic, much like Target’s TGT +3.9% 225 Disney in-store stores and Macy’s recent addition of Toys “R” Us stores next to its doors did.

However, some members of RetailWire’s panel questioned if Walmart would actually benefit the most from the agreement.


Gary Sankary, who oversees retail strategy at Esri, wrote: “This is certainly a larger success for Netflix than it is for Walmart.” “I don’t believe there is a sizable community of people wanting to discover products that is authorised by Netflix.” This will be an addition to Walmart’s already competitive holiday offer. “At a time when their subscriptions are declining and business is difficult, it’s a fresh cash source for Netflix.”

A $19.99 Netflix streaming gift card will also be available at Walmart. Gift card sales could increase Netflix memberships, which for the first time this year saw a decline in the number of subscribers. Netflix, which has created more than 1,500 original programmes since its launch in 2013, is attempting to use its material in a similar way to how major studios do to earn licencing payments for items.

In addition to offering limited-edition goods, Netflix launched its own online store and Netflix Hub on last year. As its first multi-title brick-and-mortar location, Netflix debuted a 10,000 square foot pop-up in The Grove retail centre in Los Angeles in the middle of October this year.

“When we debuted the Netflix Hub a year ago, we knew it was something special, and we are excited to expand on this collaboration, bringing our fans even closer into the worlds of their favourite shows or films,” said Josh Simon, VP of consumer products at Netflix.

Some BrainTrust participants saw room for improvement not just in this particular relationship but also for both sides with other partners on each side.

Shep Hyken, Shepherd Presentations’ chief astonishment officer, wrote, “Great idea.” This gives a streaming platform a certain level of brick-and-mortar experience. The potential for selling goods and subscriptions through the Walmart system is enormous. With which other chains may Netflix collaborate? (Question with rhetoric!) There are several!

According to Lisa Goller, a content marketing specialist, “Netflix Hub Shops make Walmart fashionable among entertainment lovers—even picky Gen Zs.” Products like the Stranger Things Lite-Brite will appeal to their Gen X parents as well. Limited-time product releases will increase store traffic because customers will return frequently to see what’s fresh. The assortment strategy will undoubtedly be in line with Netflix’s most popular programming in order to increase sales. To make its numerous stores even more alluring, Walmart will probably look for other partners for in-store shops.

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