But Netflix is learning quickly how to merchandise and monetize., in 2021, Netflix partnered with Shopify to open up its own e-commerce operation, the Netflix Shop. This site complements Netflix merchandising deals with retailers such as Target and Walmart. Merchandising capitalizes on Netflix’s ability to create culturally relevant entertainment.
Well, those alternative revenue sources are no longer a distraction. They’re essential to Netflix’s future. Advertising will create impressions and revenue. Brand tie-ins and merchandising will create revenue streams that capitalize on fandom.Entertainment analysts believe that ticket sales for 2022 won’t approach the $11.4 billion generated in 2019, but even so, sales should almost double the $4.4 billion collected in 2021. With movie theater attendance picking up, we’re seeing a change in the contentious relationship between the New Hollywood and the Old Hollywood movie distribution system.
Streaming companies -- Netflix in particular -- have long been at odds with movie theaters over film distribution. In the pre-pandemic days, theaters insisted on exhibiting films for 75-to-90 days before they were distributed via video and streaming. Old Hollywood studios played ball.