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The research firm eMarketer said this month that Netflix’s “days at the top may be numbered,” and many analysts and executives wonder if, in order to keep its revenue strong, it will have to embrace ads.“I don’t know why they wouldn’t,” said Peter Naylor, the head of advertising sales for the streaming platform Hulu.Even as Netflix resists commercials, it is finding ways to work with brands. And it is facing competition from deep-pocketed streaming newcomers like the Walt Disney Company and Apple. While it is the dominant streaming platform, with 158 million global subscribers, Netflix also has a $12 billion pile of debt. Extremely storyintensive video game in that the viewer (or player) would be able to.The arrangements with the brands are one way it can keep attention focused on a given program. But marketing executives said Netflix was increasingly open to lending its name to outside projects, including joint marketing campaigns and products based on its shows.With so much content, Netflix has had trouble sustaining attention for some shows, which can come and go in a weekend of binge-watching, never to be mentioned again. For Netflix, such deals are mostly about keeping people aware of the Netflix brand.Netflix is careful to guard its reputation, asking some of the companies it has worked with to avoid putting its logo on dart boards, paper napkins and doormats. “They’re being more flexible in the types of partnerships they can offer,” said Ellie Bamford, an executive at the marketing agency R/GA.When Netflix worked with Samsung and Aviation American Gin on a commercial last month featuring the actor Ryan Reynolds and his new Netflix film “6 Underground,” no money changed hands. Online ads from Diesel hammered home the connection by showing the Netflix name, mentioning “La Casa de Papel” and featuring characters in the distinctive red jumpsuits worn by the show’s protagonists.Netflix is “actively beefing up its marketing team,” according to the research firm Forrester. The sandwich generated a lot of publicity for Netflix in the lifestyle press while also putting the Netflix name in front of the millions of people who buy a Subway sandwich each day.“We believe we will have a more valuable business in the long term,” Netflix said, “by staying out of competing for ad revenue and instead entirely focusing on competing for viewer satisfaction.”In another recent cross-promotion, Netflix charged the clothing company Diesel a license fee to make outfits inspired by “ La Casa de Papel,” one of Netflix’s most popular shows.
Netflix Viewer Mac And ProductsNetflix has typically left such decisions up to individual producers, saying in a statement that “most of the brands that appear in shows and movies are added by creators who believe they add to the authenticity of the story.” Netflix added that “instances where those placements are paid are rare and not a business focus for us.”That is a contrast with many of Netflix’s rivals, which have actively courted companies with offers to display their products onscreen — even introducing them to showrunners and providing them with script drafts. The idea is to fuel subscriptions by drumming up interest in its shows through alliances with “brands where we feel like their audience will love our content as much as our audience does,” Netflix said in a statement.The same logic may extend to product placements. The pop-up mall opened in November, four months after Netflix made the show’s third season available to subscribers.The platform does not need to make money from major companies to benefit from working with them. In another deal, Coca-Cola briefly revived the failed 1985 beverage New Coke, which appeared in “Stranger Things” episodes, adding to its retro atmosphere.The brands did not pay to appear on the show, but Netflix took a licensing fee for a “Stranger Things” promotion in London designed by the immersive-theater company Secret Cinema, which recreated a mall from the series that sold special cosmetics from Mac and products from Coach. In one, Netflix teamed up with Baskin Robbins on new ice cream flavors like the chocolate-icing-topped Eleven’s Heaven, named after the character Eleven, and Upside Down Pralines, a reference to the alternate dimension in the show, the Upside Down. In a recent job listing for a position in Europe, Netflix said it wanted to “amplify the scope and impact of our marketing campaigns when we work with other brands.”This summer, Netflix’s biggest series, “Stranger Things,” a supernatural sci-fi show set in the 1980s, struck deals with 75 companies.
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