Streaming giant Netflix (NASDAQ:NFLX) is shaking things up after announcing plans to create physical fan destinations to boost fandom spirit. The physical fan destinations, called the “Netflix House,” will launch in the U.S. with two different locations in 2025 before expanding globally. The development comes on the heels of market struggles within the streaming segment, which has seen platforms raise their fees in recent days.
But Netflix said it is more about the experience created for the consumers than the revenue the company stands to generate. According to co-CEO Ted Sarandos at a Bloomberg event, Netflix’s consumer products efforts “don’t focus that much on … revenue and profit on that business. It’s a lot about building fandom.” The physical destinations will offer live events, retail, and even dining options.
However, Sarandos doesn’t want to draw similarities between the “Netflix House” and Disneyland. Instead, he said, “Think of it as closer to City Walk, something you might go to several times a month.” Netflix is also pooling efforts to improve its animation houses and plans to hire external producers.
Is Netflix a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 19 Buys, 13 Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Furthermore, the average NFLX price target of $468.38 per share implies 30.15% upside potential.
