| Netflix Inc. has sold more than 200 million people a subscription to its streaming service. We're about to find out if it can sell them anything else. Just this week, the company announced a new online store, as well as plans for a comedy festival next year. The company is preparing a clothing line and live events tied to "Bridgerton," as well as events and consumer products for new seasons of "La Casa de Papel," "The Witcher" and "Stranger Things." Investing in streetwear and action figures signals an evolution in strategy for the company, which for years focused on one goal: getting more people to sign up for its streaming service. Executives dismissed consumer products as too small to worry about. But that was back when Netflix was much smaller — and its competition less formidable. Netflix used to say it wanted to be HBO before HBO became Netflix. It succeeded, creating some of the most memorable TV shows of the past decade. It earned the most Emmy nominations of any company last year, and the most Oscar nominations of any studio this year. But Netflix is now entering a new chapter, and with that comes a new challenge: It wants to become Disney before Disney beats it at its own game. As Netflix tries to compete with Disney on a global scale, it is trying to create franchises that can have the same impact on culture as "Star Wars" or "Toy Story." This still starts with the shows. The company has identified properties it thinks fit the bill, and is planning a spinoff and new seasons of "Bridgerton," an anime spinoff and sequels or prequels to "The Witcher," and a Korean version of "La Casa de Papel." But the company has also begun to realize how a podcast or a Halloween costume can keep its programs relevant in between new seasons. Netflix has hired or is hiring new heads of consumer products, podcasts and video games. Netflix has been dabbling in all three areas for a few years, and has yet to have much success selling consumer products. Most industry executives blame two of the company's foundational strategies. Netflix drops every episode of its show at once, and releases more shows than anyone could ever watch. Its business model encourages people to obsess over a show for a week or two, and then move onto the next one. The most valuable entertainment franchises are built around properties that air on TV every day, or multipart movie series (often based on books or comic books). Selling toys requires constant engagement. Kids shows that are on every day are a great way to remind a child that they want a stuffed animal. (When Nickelodeon moved a show from every day to just Saturday, sales fell by 80%, according to Jeremy Padawer, an executive with Jazwares.) Netflix has experimented with releasing episodes in bunches instead of all at once, but some within Netflix believe it will have more success creating live events and in-person experiences than licensing toys. Many young customers prefer to spend their time and money on experiences instead of tangible goods these days. It's worth remembering that Netflix has been making TV shows and movies for less than a decade. Making big franchises is difficult and expensive. One of Netflix's most expensive efforts to create a new franchise, "Jupiter's Legacy," got canceled after one season. Disney has the benefit of nearly a century of trial and error. That's one reason Netflix is quick to lower expectations for many of these initiatives. The store and the podcasts are just a form of marketing. They aren't about to be huge businesses. The most important thing they can do right now, they say, is get better at animation, and movies and international shows. The company is going to release more than 400 foreign-language titles from 30 countries next year. But Netflix knows it needs to figure this all out. The company isn't going to add 25 million customers a year forever. There will come a point at which the company has signed up so many people that its user growth will slow and it will need to find an alternative. That could be now, or it could be in 2025. That's one reason why top executives have stopped referring to Netflix as a video service. They call it an entertainment company. This is semantics, but it signals the company's growing ambitions beyond just TV. Take video games. the company has had a lot of success producing TV shows based on video games, like "The Witcher." It has also experimented with choose-your-own adventure storytelling, which is a bridge between games and TV shows. Executives around the company clam up when you ask them about their plans for gaming. They say they haven't decided yet if they want to make games that are new and unrelated to shows, or just extensions. But if you go by their public proclamations and the private chatter, video games is one area where Netflix could be preparing a major push. It's also the only one of these businesses that could rival its streaming app – at least until it opens a Netflix theme park. – Lucas Shaw The best of Screentime (and other stuff) | 
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