2021 Netflix and Streaming Services

Netflix has formed a new partnership with Walmart to market products associated with its hit shows, including “Squid Game” and “Stranger Things.” The products will be sold on Walmart.com.

The tie-up is an expansion of Netflix’s current foray into retail sales, with the company seeking to monetize more than just its streaming business. The company already sells T-shirts, stickers, dolls, and other consumer products through select retailers.

The Walmart deal takes it to another level, with the retailer turning over a dedicated space on its website to exclusively sell Netflix merchandise.

“Through this new partnership, Walmart will not only offer products that bring the imagination of Netflix creators into reality but Walmart customers and Netflix superfans will also find a new, exciting entertainment destination,” Jeff Evans, executive vice president, Entertainment, Toys, and Seasonal, Walmart U.S., wrote on the Walmart blog.

Netflix Hub

Called the “Netflix Hub,” the section on Walmart’s website will try to entice fans of the Netflix shows with products that identify with the hit shows. For Netflix, it will be the first digital storefront on a national retailer’s website.

“We’re proud to partner with them on this new adventure that will let our customers dive even deeper into their favorite stories and characters,” Evans said.

The companies already have a list of products that will be offered to Netflix fans. They include:

• Ada Twist cuddle plush, which will sell for $10.97

• CoComelon 4 pc toddler bed set with bonus blanket, selling for $36.97

• Nailed It! baking kits, for $15.98

• Squid Game T-shirts in a variety of styles and price ranges

• Stranger Things collectors box, for $54.96

Fans can suggest new products

Fans will also be encouraged to make suggestions for new products that tie into Netflix shows. “Netflix Fan Select” will allow fans to vote for merchandise they’d like to see from various Netflix shows, and Walmart will try to find manufacturers to make them.

It’s part of Netflix’s strategy to expand beyond movies and TV shows. The company recently purchased a video game maker and plans to offer online games. 

“We want to continue to meet fans wherever they are, whether that’s through our biggest online marketplace at Walmart, or the more boutique and curated Netflix shop,” Josh Simon, Netflix’s vice president of consumer products, told the Wall Street Journal.

With a strong presence in the film and TV market, Netflix thinks that video games are the next profitable frontier and plans to set out to capture a niche in that space.

The company is reportedly looking to roll out video games on its platform sometime within the next year. Netflix isn’t building out a separate channel for the games; instead, they’ll appear alongside its other content. The good news for Netflix subscribers who also happen to be gamers is that the company’s plans don’t reportedly include an extra charge for the content. 

That’s good news for some customers like Joel from New Jersey. In a ConsumerAffairs review of Netflix, he asserts that the platform’s “base content is never strong enough to justify its pricing.” With the addition of a whole new type of content, maybe signing up for an account may be more worth it to some people.

The company is starting this new venture from a position of strength. It hired Mike Verdu, the vice president of Facebook’s virtual reality and augmented reality content and previously the head of EA Mobile. In that position, he oversaw a portfolio of games that included titles like Star Wars: Galaxy of Heroes.

Moving into video games also gives Netflix a leg up on competitors like Disney and Amazon, which, for the moment, don’t have gaming as part of their lineup. 

Are video games the next great frontier?

If you’re someone born with a joystick or controller in your hand, you’re probably thinking Netflix's move into gaming isn’t new. And you’d be correct -- at least historically speaking. However, Statista reports that video games are experiencing a renaissance, and the market is only at the beginning of its newest revolution. 

Researchers say revenue in the video games segment is projected to reach over $154.6 billion in 2021 and continue to grow at a rate of 9.28% over the next few years. Those numbers speak volumes to content services like Netflix. The company also has to be licking its chops over future forecasts.

The number of users in the video games segment currently sits at around 2.8 billion, and it’s expected to grow to 3.1 billion by 2025. If Netflix was successful in signing even a small percentage of the new users, it could be swimming in tens of millions of dollars in additional revenue each month.

“This feels like a significant event with broad ramifications across the video games landscape,” Citi analyst Jason Bazinet wrote in a note Thursday. He said Netflix’s move creates “obvious risks” for larger game developers and publishers. 

Netflix has announced the launch of two new features for families. First, subscribers will see a new “Kids Top 10 list” on kids and family profiles. The most popular children’s shows and movies will be shown and updated daily. 

The leaderboard -- a feature that was previously only available for adult members -- can be viewed in the kids homepage or in the “New & Popular” section in the menu bar across all devices, with the exception of Apple TV. 

The streaming giant also announced on Wednesday that it will start sending out a biweekly email newsletter that will let parents know what their children have been watching. 

The recap email will also include recommendations based on kids’ viewing habits, kids’ favorite genres and topics, and tips on how to best utilize Netflix Kids. The newsletter will also provide some screen-free activities, such as printable coloring pages featuring your child’s favorite characters.

Family-friendly features

The first newsletters will go out later this week to subscribers who have set up a Kids profile on their account. Netflix said the new features are the result of discussions with parents and more than six months of testing.

"Shows and movies are an important way for kids to connect with the world—helping to teach them about new places, create bonds with family or friends, and understand other perspectives," Jennifer Nieva, director of product innovation at Netflix, wrote in a blog post.

The recap emails are intended to “give parents a better understanding of their child’s preferences and new ways to engage those interests,” and the new Top 10 ranking is intended to help younger viewers find new content.

“We’ve seen how Top 10 rows help our members find something to watch, and helping families make the best decisions has always been important to us,” the company said. 

A special heads-up to everyone who shares their Netflix accounts with friends and relatives: The streaming video service is testing a new policy regarding the sharing of accounts. In the test, a group of customers will get a prompt to sign up for a separate account if they aren’t watching with the actual subscriber.

The message reads: “If you don’t live with the owner of this account, you need your own account to keep watching.” 

It’s important to note that the Netflix police aren’t on the prowl and this isn’t a full-fledged crackdown… yet. But the company has made noise about this before. A Netflix spokesperson told The Streamable that the tests will only be on TV devices and that they are “designed to help ensure that people using Netflix accounts are authorized to do so.”  

The household issue

The company didn’t say if users in the test must all be using the same IP address to be considered in the same “household,” but the company’s terms of use specifically state that an account can only be shared with members of your household. 

“The Netflix service and any content viewed through our service are for your personal and non-commercial use only and may not be shared with individuals beyond your household,” it reads.

Netflix has long had a tight stance on sharing passwords and accounts. "We expect that Netflix is a household level purchase, and that sharing with members of the household is a reasonable thing to do," Neil Hunt, Netflix's Chief Product Manager, told Digital Spy back in 2016. Drilling down on what is and what isn’t a “household,” Hunt gave an example that many families are likely to run into.

"When the kids go off to college, are they going to use that login? Well, that's probably OK, but when the kids go off and form their own household, they want the control of having their own account, so eventually that turns into a new revenue stream for us there as well."

Hunt said that the company expects the service will be shared “within the household,” but admitted that you're unlikely to get a slap on the wrist for pushing the envelope a little.

"I don't think we are obsessed with enforcing compliance with a one-household-per-account constraint. Because, in reality, it's a high-value programme, so that's what people are going to do,” he said.

Netflix has confirmed that it’s testing a new timer function on Android devices. 

A select group of users will be able test the feature by tapping a clock icon labeled “Timer” in the upper right hand corner of the content they’re streaming. From there, users can select 15, 30, 45 minutes, or “Finish Show.”

The feature may come in handy for users who doubt their ability to stay awake for multiple episodes. The timer should make it easier for users to keep their place in a series, as well as help conserve the battery life of Android devices.

For now, the time functionality is only being tested among adult Android users. If the test yields interest among Netflix users, the streaming giant could expand its availability to other devices, according to The Verge. 

Testing new features

Netflix also recently announced that it’s planning to launch a new “Shuffle Play” feature in the first half of 2021 following tests last summer. The feature lets consumers choose to have Netflix select content for them based on their viewing history.

The shuffle option is geared toward people who turn on Netflix “and they’re not really sure what they want to watch,” Netflix COO and chief product officer Greg Peters said earlier this month. 

“It’s really working for us where our members can basically indicate to us that they just want to skip browsing entirely, click one button and we’ll pick a title for them just to instantly play,” Peters said during the company’s Q4 investor interview Tuesday. “And that’s a great mechanism that’s worked quite well for members in that situation.” 

Netflix is launching a new “Shuffle Play” feature in the first half of 2021, Variety reports. The new feature lets users allow Netflix to serve up randomized content based on subscribers’ viewing history. 

The company said it’s been testing the feature since last summer. In its fourth quarter earnings report, Netflix COO and chief product officer Greg Peters said the shuffle option is geared toward consumers who turn on the service “and they’re not really sure what they want to watch.” 

“It’s really working for us where our members can basically indicate to us that they just want to skip browsing entirely, click one button and we’ll pick a title for them just to instantly play,” Peters said during the company’s Q4 investor interview Tuesday. “And that’s a great mechanism that’s worked quite well for members in that situation.”

Selection based on viewing history

With Netflix’s pool of content growing deeper each year, the company said it saw an opportunity to alleviate feelings of overwhelm for users. The company has previously attempted to make it easier to find content to watch by adding a “New & Popular” tab. Added last year, the tab shows users a selection of new, popular, and upcoming content. 

Netflix’s new shuffle tool will show users shows or movies similar to the ones they have watched previously. 

“Titles served up by Netflix when you hit the ‘Play Something’/’Shuffle Play’ button will be either shows or movies similar to ones you’ve watched previously; titles in genres you’ve viewed; or content you have saved in the ‘My List’ section,” Peters explained. “For example, when I recently clicked “Play Something,” Netflix started streaming ‘The Crown’ Season 1 (explaining that it was a drama similar to “The Queen’s Gambit,” which I binge-watched last month).” 

Netflix users will be given the option of clicking a “play something else” button if the content selected for them doesn’t sound appealing.