Case Study
Key takeaways
- Qloo’s advanced Taste AI helps Netflix uncover viewer preferences outside of streaming, leading to strategic merchandising decisions like the shift from selling Bridgerton-branded tea to coffee to better appeal to American fans.
- With Qloo’s insights, Netflix can identify and partner with top brands that resonate with audiences, as seen with its successful Stranger Things x Vans footwear collection.
- By tapping into Qloo’s AI-powered cultural insights, Netflix is able to offer merchandise that resonates with viewers’ tastes, allowing it to take the appeal of its IP to store shelves, create deeper connections with fans, and drive critical incremental revenue.
Netflix has a knack for recommending exactly what you didn’t know you were in the mood to watch. Its algorithms have made it possible for viewers to find content that feels custom-selected for their tastes and has been a key driver of Netflix’s success, transforming the way we discover and enjoy entertainment and establishing it as a leader in the streaming world.
But despite its massive successes, Netflix faced challenges in extending its tailored approach to its merchandising strategies. Its rich data on viewing preferences couldn’t fully capture the broader cultural interests of its global audience—critical insights essential for developing products, experiences, and merchandise that resonate with fans on a personal level.
The Qloo solution
Facing the challenge of extending its renowned creative work from screens to stores, Netflix looked to Qloo’s advanced Taste AI to penetrate deeper into the cultural fabric of its audience’s tastes outside of streaming. By extending the same level of personalization that viewers experience on-screen to the products they can hold in their hands, Netflix hoped to create a more immersive brand experience while simultaneously driving sales outside of its core subscriber revenue model.
Qloo’s sophisticated Taste AI is able to complement Netflix’s first-party subscriber data. By tapping into a rich database of cultural preferences, from music and literature to fashion and lifestyle choices, Qloo offers a comprehensive understanding of what truly resonates with Netflix’s global audience. This depth of understanding provides a strong foundation to not only identify but also anticipate viewer needs and interests, making it possible for Netflix to innovate with data-backed insights.
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Results
Qloo’s insights give Netflix’s merchandising teams the tools to do more than just come up with product ideas that match what their shows’ fans might like—they also make it possible to fine-tune these ideas for different groups of viewers, ensuring each piece of merchandise is perfectly aligned with its target audience. For example, Qloo was able to help Netflix identify top brands that resonate with fans of their hit show, Stranger Things, to supplement their strategic merchandising decisions. Thanks to Qloo’s taste data, Netflix partnered with Vans to create a Stranger Things x Vans footwear collection, a product line that not only celebrates the essence of Stranger Things but also meets the precise tastes of its audience, ensuring the merchandise resonates on a deeper level and strengthens fan engagement.
Qloo provides Netflix with concrete, data-driven insights that guide decision-making processes effectively. Take, for instance, Netflix’s initial plan to develop a line of Bridgerton-themed tea products, based on the assumption that fans of the show set in the United Kingdom would enjoy tea. Qloo’s insights revealed a stronger preference for coffee over tea among the predominantly American audience of Bridgerton. This critical insight prompted a strategic shift towards coffee-related merchandise, prompting Netflix to partner with International Delight to release a line of limited-edition Bridgerton-inspired creamers and iced coffee. The new, data-backed decision allows Netflix to truly maximize the value of its intellectual property (IP), connecting with fans authentically while also growing non-streaming revenue.
Queuing up success
Qloo’s extensive cultural insights allow Netflix to fine-tune its merchandising efforts, aligning its products with viewer preferences to enrich the overall Netflix experience and extend its financial reach beyond its subscription-based model. Integrating Qloo’s Taste AI, Netflix creates products that perfectly match the evolving tastes of its viewers, ensuring its merchandising is as personalized and relevant as possible. This not only maximizes the appeal of its IP, creating deeper connections with fans, but also significantly enhances non-streaming revenue. The collaboration creates exciting new directions for audience connection and product innovation in the entertainment industry and beyond.
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