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After losing its bid for Warner Bros Discovery\u2019s rich trove of characters and stories, Netflix is forging ahead with the challenging work of building culture-defining franchises on its own.<\/p>\n
Chief Creative Officer Bela Bajaria said Netflix would keep investing in original ideas, and partner with established studios like MGM and Warner Bros, to try and produce movies and series that live on for years, in the vein of \u201cStranger Things,\u201d \u201cWednesday\u201d and \u201cBridgerton.\u201d<\/p>\n
\u201cTo me, that\u2019s just continually the goal,\u201d Bajaria said in an interview.<\/p>\n
Yet the failed attempt to buy Warner Bros\u2019 storied movie studio and HBO highlighted a vulnerability for the relative Hollywood upstart, whose catalog of original films and series spans around a dozen years, compared with more than a century\u2019s worth of stories and characters for Warner Bros, Walt Disney and Universal Pictures. Netflix was willing to make its biggest bet ever with $72 billion to shore up its library and augment its intellectual property with Harry Potter and \u201cGame of Thrones,\u201d because creating franchises has proven challenging.<\/p>\n
Interviews with 16 current and former Netflix executives, industry leaders and agents illustrate a picture of the streaming giant whose strategy of making something for everyone, and serving many audiences all at once, is different from crafting a Taylor Sheridan-like universe of \u201cYellowstone\u201d spin-offs that brings a built-in audience.<\/p>\n
Even so, Netflix\u2019s own prolific showrunner, Shonda Rhimes, has successfully adapted Julia Quinn\u2019s \u201cBridgerton\u201d novels into a series that\u2019s entering its fifth season, a spinoff and a touring event set in the Regency-era London, dubbed \u201cThe Queen\u2019s Ball.\u201d<\/p>\n
Franchises can be valuable for entertainment companies, because they are lower-risk investments that can bring in ancillary revenue through merchandise sales and in-person experiences. Recognizable characters and stories also stand out in a fragmented media landscape, grabbing a viewer\u2019s attention in a time of myriad distractions.<\/p>\n
Netflix announced its first major acquisition, the comic book publisher Millarworld, a day before Disney told investors in August 2017 that it would pull its movies from the streaming service to create a rival, later dubbed Disney+.<\/p>\n
\u201cStranger Things\u201d has been an unqualified success, producing a spin-off series, a stage play, and merchandise. Netflix points to other examples, such as the action-adventure film \u201cExtraction,\u201d starring Chris Hemsworth, that led to a sequel and a third installment in production, as well as a series starring acclaimed French actor Omar Sy. Its long-running dating show \u201cLove Is Blind\u201d has been remade for multiple global audiences, including versions centered in Brazil, France and Japan.<\/p>\n
There have been pricey\u00a0flops along the way to building its own franchises, like the reported\u00a0$700 million deal to acquire rights to Roald Dahl\u2019s catalog, which includes such beloved children\u2019s stories as \u201cCharlie and the Chocolate Factory.\u201d The investment has yet to produce a major hit in five years \u2014 though Netflix will try again this year. It plans a Willy Wonka-inspired reality show called \u201cGolden Ticket\u201d in which competitors try to survive games and temptations on a set with a chocolate river.<\/p>\n
Producing consistent hits that spawn new series helps to attract and retain subscribers and increase engagement, which grew by only 2% in the second half of 2025, according to media consultant Owl & Co. Top-line growth has been slowing, with revenue expected to grow 13% this year, according to data from LSEG, compared to 16% in 2025, and its advertising sales represent only 3% of the total. YouTube\u2019s ascendancy poses a competitive threat. YouTube and Disney, with its vault of iconic characters, have consistently beaten Netflix in share of television viewing since October 2024, according to Nielsen\u2019s media distributor gauge, which measures broadcast and cable television viewing and streaming.<\/p>\n
Complicating matters, Paramount Skydance is acquiring Warner Bros, which could reduce the number of suppliers of original shows.<\/p>\n
Armed with a $2.8 billion windfall from the failed Warner Bros deal, Netflix Co-CEOs Ted Sarandos and Greg Peters will continue to go it alone. Its coming releases include time-tested characters and stories, including a live-action \u201cScooby-Doo\u201d series and a \u201cNarnia\u201d movie based on the C.S. Lewis books and directed by Greta Gerwig.<\/p>\n
\u201cThe Electric State\u201d offers one example of an expensive failure\u00a0that illustrates the inherent risks in attempting to launch a sprawling Marvel-like cinematic universe.<\/p>\n
Netflix snagged Joe and Anthony Russo, the brothers behind the smashing success of Walt Disney\u2019s Avengers movies and Netflix\u2019s own \u201cExtraction,\u201d to adapt the critically acclaimed science-fiction novel, and cast \u201cStranger Things\u201d star Millie Bobby Brown alongside Hollywood A-lister Chris Pratt as stars.<\/p>\n
Critics savaged the $320 million film when it was released last year. Plans to more fully exploit the film \u2014 including a possible spin-off series and sequels \u2014 never materialized, according to two sources directly involved with the project who requested anonymity to protect their industry relationships.<\/p>\n
\u201cA lot of people have big movies that also are IP that don\u2019t work,\u201d said Netflix\u2019s Bajaria. \u201cWe\u2019re in the film and TV business, so a lot of things work, a lot of things don\u2019t work.\u201d<\/p>\n
Other gambles \u2014 such as Netflix\u2019s decision to greenlight \u201cSquid Game,\u201d a dystopian thriller from creator Hwang Dong-hyuk that others had passed on \u2014 paid off handsomely, creating a global juggernaut.<\/p>\n
With the sheer volume of content, Netflix also has its share of surprises, like Sony Pictures Animation\u2019s Oscar-winning animated film \u201dKPop Demon Hunters,\u201d which last year became the most watched movie ever on the service.<\/p>\n
When lightning strikes, it can rely on its unparalleled global distribution and sophisticated algorithm to stoke enthusiasm for a movie or series that viewers have begun to binge, helping to create cultural phenomena.<\/p>\n
Netflix is treating \u201cKPop Demon Hunters\u201d as its next major franchise, with licensed toys and other merchandise from Mattel and Hasbro, themed \u201cadult\u201d meals from McDonald\u2019s, a possible concert tour and a planned animated sequel.<\/p>\n
But the success caught Netflix off guard, according to two sources. In fact, the company didn\u2019t have licensed toys available to capitalize on the phenomenon during the holiday shopping season. Netflix has said in interviews that it approached toymakers and retailers a year or more ahead of the film\u2019s release, but they were unwilling to take a risk on an untested property.<\/p>\n
At a March 18 presentation in Los Angeles, Netflix showcased its 2026 lineup, which includes a fourth installment of \u201cBridgerton,\u201d\u00a0 a second season of \u201cOne Piece,\u201d an adaptation of the long-running manga series, a live-action TV series based on the \u201cAssassin\u2019s Creed\u201d video game franchise, and a reboot of \u201cLittle House on the Prairie.\u201d<\/p>\n
\u201cWe\u2019re off to a strong start and feeling confident about the quality and consistency of our slate this year,\u201d said Jinny Howe, vice president of original series at Netflix.<\/p>\n
(Reporting by Dawn Chmielewski and Lisa Richwine in Los Angeles; Editing by Jen Saba and Anna Driver)<\/p>\n<\/div>\n