Netflix Strengthens Franchise Strategy After Losing Warner Bros’ Iconic IPs
After an unsuccessful bid for Warner Bros Discovery’s extensive library of characters and stories, Netflix is moving forward with its strategy to develop original franchises. The streaming giant aims to establish culture-defining narratives independently, as it seeks to create enduring films and series.
Commitment to Original Content
Bela Bajaria, Chief Creative Officer at Netflix, emphasized the company’s ongoing commitment to investing in original ideas. Netflix plans to collaborate with established studios like MGM and Warner Bros to produce content that resonates with audiences for years, similar to successful titles such as Stranger Things, Wednesday, and Bridgerton. Bajaria stated that the goal remains to continuously innovate and create compelling narratives.
The failed acquisition of Warner Bros’ storied movie studio and HBO has underscored Netflix’s vulnerabilities. With a catalog of original films and series spanning roughly a dozen years, Netflix contrasts sharply with the century-long legacy of storytelling from Warner Bros, Walt Disney, and Universal Pictures. The company had proposed a staggering $72 billion to enhance its library and bolster its intellectual property, including franchises like Harry Potter and Game of Thrones, highlighting the challenges of franchise creation.
Strategic Insights from Industry Leaders
Insights from 16 current and former Netflix executives, industry leaders, and agents reveal a complex picture of the streaming service’s strategy. Unlike other creators who focus on building a singular universe—such as Taylor Sheridan’s Yellowstone spin-offs—Netflix aims to cater to diverse audiences simultaneously. This broad approach presents both opportunities and challenges in franchise development.
Despite these challenges, Netflix’s prolific showrunner, Shonda Rhimes, has successfully adapted Julia Quinn’s Bridgerton novels into a series that is now entering its fifth season. The franchise has expanded to include a spinoff and a live event set in Regency-era London, called “The Queen’s Ball.”
The Value of Franchises
Franchises are increasingly valuable for entertainment companies, providing lower-risk investments and additional revenue streams through merchandise and live experiences. Recognizable characters and stories stand out in a fragmented media landscape, capturing viewer attention amid numerous distractions.
Netflix’s first major acquisition, the comic book publisher Millarworld, occurred just before Disney announced its intent to withdraw its films from the platform to launch Disney+. The success of Stranger Things has led to a spin-off series, a stage play, and various merchandise. Other successful titles include the action-adventure film Extraction, which has spawned a sequel and a third installment currently in production, as well as a series featuring acclaimed French actor Omar Sy. Additionally, the long-running dating show Love Is Blind has been adapted for multiple international audiences, including Brazil, France, and Japan.
Challenges in Franchise Development
However, Netflix has faced significant setbacks in its quest to build franchises. A notable example is the reported $700 million deal to acquire rights to Roald Dahl’s catalog, which includes beloved children’s stories like Charlie and the Chocolate Factory. This investment has yet to yield a major hit in five years, prompting Netflix to attempt a new venture with a Willy Wonka-inspired reality show titled Golden Ticket, where competitors navigate challenges on a set featuring a chocolate river.
The need for consistent hits that can lead to new series is critical for attracting and retaining subscribers. Engagement growth has been modest, increasing by only 2% in the latter half of 2025, according to media consultant Owl & Co. Revenue growth is projected at 13% for the current year, down from 16% in 2025, with advertising sales making up only 3% of total revenue. Competing platforms like YouTube and Disney have consistently outperformed Netflix in television viewing share since October 2024, according to Nielsen’s media distributor gauge.
Industry Dynamics and Future Plans
The landscape is further complicated by Paramount Skydance’s acquisition of Warner Bros, potentially reducing the number of suppliers for original shows. Following the failed Warner Bros deal, Netflix Co-CEOs Ted Sarandos and Greg Peters are set to continue their independent path. Upcoming releases include a live-action Scooby-Doo series and a Narnia movie based on C.S. Lewis’s books, directed by Greta Gerwig.
The film The Electric State serves as an example of the risks associated with launching expansive cinematic universes. Netflix enlisted Joe and Anthony Russo, known for their work on Disney’s Avengers films, to adapt the acclaimed science-fiction novel. Featuring Stranger Things star Millie Bobby Brown and Hollywood A-lister Chris Pratt, the $320 million film faced harsh criticism upon release. Plans for spin-offs and sequels have not materialized, according to sources familiar with the project.
Bajaria acknowledged that many high-profile films do not succeed, stating that while Netflix operates in the film and TV business, not every project will resonate with audiences. Conversely, some gambles have proven fruitful, such as the decision to greenlight Squid Game, a dystopian thriller that has become a global phenomenon.
Surprises and Future Prospects
Netflix’s extensive content library has also led to unexpected successes, such as Sony Pictures Imageworks’ Oscar-winning animated film KPop Demon Hunters, which became the most-watched movie on the platform last year. The company can leverage its global distribution and sophisticated algorithms to generate excitement for content that resonates with viewers.
KPop Demon Hunters is now being positioned as a major franchise, with plans for licensed toys and merchandise from companies like Mattel and Hasbro, themed meals from McDonald’s, a potential concert tour, and an animated sequel. However, the success of this film caught Netflix off guard, as the company was not prepared with licensed toys during the holiday shopping season. Despite efforts to engage toymakers and retailers well in advance, many were hesitant to invest in an untested property.
At a presentation on March 18 in Los Angeles, Netflix unveiled its 2026 lineup, which includes a fourth season of Bridgerton, a second season of One Piece, a live-action series based on the Assassin’s Creed video game franchise, and a reboot of Little House on the Prairie. Jinny Howe, vice president of original series at Netflix, expressed confidence in the quality and consistency of the upcoming slate.
As reported by www.arnnewscentre.ae.
Explore the latest digital editions of FAME Delivered in the Magazine section
Published on 2026-04-02 14:20:00 • By FAME Delivered News Desk