Stranger Things is a Netflix Originals MEGA Hit... For Now

TL;DR

"Stranger Things" is a popular Netflix show that has helped the company attract and retain subscribers, earning revenue not only through subscriptions but also through merchandise sales.

Transcript

hi and welcome to the Motley Fool's bottom-line series in this episode we're talking about Netflix's hit show stranger things and how it makes the video streaming company money and why original shows like this are so important to Netflix if for some reason you're one of the few people who haven't seen an episode of stranger things the show is set i... Read More

Key Insights

• 🛀 "Stranger Things" is one of Netflix's most successful original shows, attracting a large audience and earning critical acclaim.
• 💗 The show's success is essential for Netflix's strategy of producing original content to compete with growing streaming competitors like Disney, Apple, and Amazon.
• 💳 Merchandising opportunities from "Stranger Things" help Netflix generate additional revenue beyond subscriptions.
• 📚 Netflix has invested billions of dollars into original programming to create a vast library of content for its subscribers.
• ❓ The financial success of "Stranger Things" demonstrates the effectiveness of Netflix's original content strategy.
• 👻 The show's popularity has allowed Netflix to recoup the investment and continue benefiting from it.
• 👶 "Stranger Things" serves as both a bankable franchise and a major draw for new subscribers.

Questions & Answers

Q: Why did Netflix invest so much money in producing "Stranger Things"?

Netflix has shifted its strategy to focus on producing its own original content, and shows like "Stranger Things" help attract new subscribers and keep existing ones engaged.

Q: How much did Netflix spend on the first season of "Stranger Things"?

Netflix spent $6 million per episode for the first season of "Stranger Things" and increased the budget to $8 million per episode for the second season.

Q: How does "Stranger Things" generate revenue beyond video subscriptions?

Netflix sells "Stranger Things" merchandise, including comic books, LEGO sets, and branded apparel, through partnerships. This generates licensing fees and additional revenue for the company.

Q: Will there be more seasons of "Stranger Things"?

Yes, Netflix has signed a deal to produce a fourth season of "Stranger Things" that will debut in 2020.

Summary & Key Takeaways

• "Stranger Things" is a successful Netflix original show set in the 1980s, following a group of young friends as they uncover government conspiracies and fight sci-fi monsters in their small Indiana town.

• The show has been a huge hit, watched by over 64 million Netflix member households in the first four weeks after the release of its third season.

• Netflix spends a significant amount of money on producing original shows like "Stranger Things" as part of its strategy to create a large library of content to satisfy its subscriber base.