The news: Netflix will open its first two “Netflix House” mall locations in Dallas and Philadelphia by the end of 2025, the company announced at Cannes. A third location in Las Vegas will open by 2027.

Announced in 2023, Netflix Houses are in-mall locations where fans can eat food, shop for merchandise, and participate in activities themed after Netflix originals like “Wednesday,” “One Piece,” and “Stranger Things.”

Why it matters: Netflix House is striking at a moment when mall traffic is showing resilience thanks to luxury and experiential offerings. Premiere mall real estate, meanwhile, is abundant after retailers like Macy’s closed hundreds of large locations in recent years.

But beyond delving into retail, Netflix House is an opportunity for the streamer to solidify itself as a powerful entertainment brand.

• Netflix House may appear at first glance like a costly bet on the long-declining mall sector, but access to cheap real estate and a strong consumer appetite for in-person experiences will be two strong winds in Netflix’s sails.
• Though Netflix House was announced two years ago—long before the current era of economic uncertainty—it is well-positioned to capitalize on current trends in malls. The announcement of a Las Vegas location demonstrates Netflix’s deepening commitment to the strategy.

Other streaming competitors like Disney and Warner Bros. Discovery have expansive theme park businesses that have deepened consumers’ connection with tentpole intellectual property. Those parks have performed well (particularly for Disney) in recent years as the linear TV business declines and streaming hits saturation. With Netflix House, Netflix can tap into that same appetite for experiences with cheaper overhead and lower cost of entry than theme parks.

Our take: Netflix’s retail and experiential play could open fascinating possibilities for the company in the future, but for now, they can be seen as a brand marketing play.

Not every company has the deep pockets to open intricate mall locations, but Netflix’s decision to persist with Netflix House shows that economic anxieties shouldn’t cause brands to abandon large marketing campaigns or activations that could leave an impression with consumers.