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Can Stranger Things Push Netflix & Others With 80s Consumerism?

Zacks Equity Research

Netflix’s NFLX Stranger Things Season 3 released globally on Jul 4 after two long years. The show brought with it reminisces of 1980s consumerism. So while the big American brands made their way into the show’s Starcourt Mall and featured as the characters’ favorite products, Netflix emerged as the clear winner of this consumer brands showdown, apart from the brands of course.

Stranger Things Season 3High on 1980s Brands

Netflix’s original show Stranger Things is a science fiction set in the fictional town of Hawkins, Indiana. But unlike other originals by the streaming giant, the show uses well-known brands to tie itself firmer to its early 1890s timeline.

The substantial advertising campaign in the show is far too noticeable, with brands gaining even more prominence in the latest season. Nevertheless, Stranger Things’ in-show advertising is one of the most certain ways of making the show’s timeline credible to viewers. The consumer products come in their early 1980s getup, which not only inspire a sense of nostalgia but also add an aesthetic touch to the show.

Netflix is the Biggest Beneficiary

Stranger Things Season 3 has already turned the platform’s ratings higher. Netflix announced on Jul 8 that about 40.7 million household accounts were watching the show since its launch 4 days ago and 18.2 million household accounts had already finished watching it. Since Netflix follows a binge-focused content strategy, it released the eight episodes of Stranger Things Season 3 at the same time.

The massive popularity of the show clearly indicates more subscribers ahead for the streaming giant.

In addition, the streaming giant is set to gain from the heavy brand placement in Stranger Things Season 3. The company has signed a series of merchandise tie-ups that celebrate ‘80s consumerism with brands that are a big part of the latest season. Netflix currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Brands Banking on Stranger Things’ Popularity

Netflix doesn’t allow commercial breaks during video streaming. This makes brand placement within Netflix shows essential for brand marketing and promotions.

It isn’t hard to miss Eleven’s fondness for The Kellogg Company’s K Eggos, characters sipping The Coca-Cola Company’s KO New Coke and Lucas and Mike’s attempts to get Nestlé’s NSRGY Kit Kat bars from a vending machine. Stranger Things Season 3 clearly surpasses its previous seasons in terms of product placement.

In fact, Season 3’s 1980s-era Starcourt Mall is full of period-specific products that clicked with the viewer. Retro-style clothing, Burger King whoppers and polaroids took viewers back in time, instilling a love for brands that existed in the summer of 1985 and continue to do so today.

Merchendise Tie-Ups Could Boost Brands

Apart from brand placement in the show, Netflix, along with the consumer brands, is marking a clever marketing strategy through merchandise tie-ups. After all, the $122 billion that consumers spend on merchandise linked to entertainment every year is greatly beneficial for any company that banks on related products.

Companies generate revenues from sale of show-specific merchandise. In addition, these products remain in public eye, acting as free advertisement for the show.   

Microsoft MSFT will launch a video game from the show and offer science camps named after the Camp Know Where from the show at its U.S. stores all summer, according to Bloomberg. Microsoft carries a Zacks Rank #2 (Buy).

Stranger Things is also partnering with Nike NKE to release their “OG Collection” on Jul 12. The collection will comprise show-specific clothing related to Independence Day as portrayed in Season 3. Some of the show’s character-specific fashion is also being offered by Levi Strauss LEVI and H & M Hennes & Mauritz HNNMY. Given the fan base the show enjoys, these companies would benefit immensely from sales of show-specific products.

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Netflix, Inc. (NFLX) : Free Stock Analysis Report
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Kellogg Company (K) : Free Stock Analysis Report
Nestle SA (NSRGY) : Free Stock Analysis Report
Hennes & Mauritz AB (HNNMY) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
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