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Netflix, a $300 billion market cap giant, is opening a physical theme park. Disney, Universal, Sony, Warner, and Paramount are planning big moves!

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2024-09-05


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Netflix (Netflix, Inc., hereinafter referred to as "Netflix"), known for its frequent hit shows, is officially entering the offline market. It plans to open a series of offline theme stores and collaborate with a major theme park operator to create theme parks!



The First Netflix Houses Globally Arrive

Future Plans for Global Expansion



Recently, Netflix announced that the first batch of its large-scale offline entertainment venues, Netflix House, will be located in King of Prussia Mall in Pennsylvania and the Galleria Dallas. Unlike previous pop-up events, Netflix House is a long-term offline experience venue, with the first batch of stores planned to open in 2025.



Image Source: Netflix



It is reported that both locations will cover an area exceeding 100,000 square feet (approximately 9290㎡), including permanent theme stores featuring popular Netflix IPs, dining spaces, immersive theaters, escape rooms, mixed reality games, themed children's playgrounds, and live events. Consumers can:
  • Watch movies and TV shows (including premieres and meet-and-greets with actors);
  • Experience gaming consoles, wearable devices, mini-golf, roller skating, and other recreational activities, such as the Squid Game-themed glass bridge challenge;
  • Enjoy stage plays or concerts, such as a Bridgerton ball or a Stranger Things stage play.



Image Source: Netflix



According to Netflix, after opening offline experience stores in the United States, they plan to expand globally.

In fact, Netflix has been testing the offline market since last year, launching more than 50 pop-up stores/pop-up events in 25 cities. This served as a basis for selecting the most popular IPs for future permanent retail entertainment venues.

Netflix stated that it hopes to use these offline physical stores as marketing tools to attract more fans and support its core subscription streaming business, creating a closed loop between online and offline consumption.




Partnering with a South Korean Theme Park Giant

Jointly Creating a Horror-Themed Park



In addition to opening large-scale offline theme venues, the restless Netflix has also partnered with South Korean theme park giant Everland to create the "Blood City" theme park.



Image Source: Everland



It is understood that this theme park officially opened in early September this year. With a horror theme, it incorporates the thriller elements of popular Netflix IPs such as "All of Us Are Dead" and "Stranger Things" throughout the theme park, creating a terrifying atmosphere and setting.



Image Source: Everland



Previously, Netflix used its IPs to create experiential pop-up stores, but this is the first time it has collaborated with a large amusement park to build a large-scale theme park. Everland's introduction of horror-themed experiences in its large amusement park and theme park, incorporating elements from Netflix's thriller movies and TV series throughout the theme park, showcases the extraordinary charm created by Netflix and Everland.

Although Netflix has stated that opening Netflix House and creating large-scale theme parks in theme parks are currently only ways to promote its brand and will not be its main source of income, the company intends to expand its consumer product business.



Theme Park Giants: Disney,

Universal Studios, Sony, Warner Bros., Paramount are all making "big moves"



Industry insiders say that Netflix's increased investment in offline experiences and its foray into the theme park business reflect its ambition in the "IP consumption" market. Although consumer products and experiences are currently only supplementary businesses for Netflix, if Netflix achieves stable and long-term revenue, building Netflix theme parks is not impossible.

In the face of Netflix's entry, these giants are not idle, frequently making moves, increasing investment, expanding existing projects, launching new theme parks, and accelerating large-scale layout to increase brand competitiveness.

Disney: A $60 Billion Theme Park Investment Plan to Create a More Immersive Experience for Visitors
According to a document submitted by Disney to the U.S. Securities and Exchange Commission in March and announced at the Disney D23 Expo on August 10, it plans to invest $60 billion in the next few years to maintain its theme parks and resorts' leading position in the global entertainment market. This includes large-scale expansion of Shanghai Disneyland and Hong Kong Disneyland. Disney plans to invest $30 billion in Disneyland, Disney California Adventure Park, and other theme parks worldwide, based on popular IPs such as Avatar, Frozen, Tron, and Zootopia.

Shanghai Disneyland will launch a brand-new Spider-Man themed attraction, which will be the first large-scale attraction in the theme park to tell a Marvel story, bringing a thrilling roller coaster experience. In fact, the preliminary construction work for this new attraction at Shanghai Disneyland began earlier this year, and its specific location will be adjacent to the "Zootopia" themed area that opened last December.




Rendering of Shanghai Disneyland's Spider-Man Themed Attraction



Hong Kong Disneyland will create a new Marvel-themed expansion area and its attractions. Spider-Man, Peter Parker, will also join as a guide in the Innovation Center. This new project will be the "third act" of the Tomorrowland Marvel expansion. Currently, Hong Kong Disneyland has two Marvel-themed attractions, "Iron Man Experience" and "Ant-Man and The Wasp: Nano Battle!," which opened in 2017 and 2019, respectively.


Concept Art of Hong Kong Disneyland's Tomorrowland Marvel Themed Area



Construction of the second phase of Universal Beijing Resort will begin this year, incorporating more Chinese elements.
Looking at Comcast's concurrent financial report, the five global Universal Resorts, including Universal Beijing Resort, had revenue of $1.975 billion in the second quarter, down 10.6% year-on-year. Foreign media analysis attributes this to reduced attendance at US parks, the negative impact of the weakening US dollar, and the compression of profit margins due to investment in new facilities. However, in the Chinese market, Universal Beijing Resort has maintained high popularity since its opening in 2021, receiving nearly 10 million visitors last year and driving approximately 16 million visitors to the Universal CityWalk.



Image source: Beijing Universal Studios Resort official Weibo



In recent years, the expansion plan of Beijing Universal Studios has been making continuous progress:

The Beijing sub-center cultural tourism industry exchange meeting held in August revealed that the construction of the second phase of Beijing Universal Theme Park will start this year.


At the beginning of the year, Shoudu Tourism Group, a project partner, stated that it is deepening and improving the overall plan for the construction of Universal's second phase, including theme parks, supporting hotels, and other commercial facilities. Furthermore, the development and construction of the second and third phases of Universal will incorporate more Chinese elements.



Image source: Beijing Universal Studios Resort official Weibo



Sony: From IP Licensing to Developing its Own Offline Brand, Integrating Diverse IP Experiences

Sony's offline immersive entertainment is shifting from IP licensing partnerships to developing its own brands. Jeffrey Godsick, Sony's Executive Vice President of Global Partnerships and Brand Management, recently stated that several projects will be developed in immersive theater spaces, one of which will open in London in late summer, and others will be launched in the United States.


In December last year, Sony launched Wonderverse at the Oak Brook Center, a large 45,000-square-foot physical and VR gaming, themed interactive installation, and dining center, which officially opened on January 11.


The Wonderverse project includes Ghostbusters virtual reality (VR) experiences, Jumanji VR games, Zombie Land themed bumper cars, Bad Boys racing simulators, Uncharted escape rooms with a coherent storyline—The Heist, The Hunt, and The Return—and a 21 Jump Street pop-up bar.





For the construction of Wonderverse, Sony plans to introduce more IPs from various areas of the company, such as animation, film, and program IPs.

Godsick said, "Wonderverse provides a great testing platform to talk directly to the audience and understand what they like best. Similarly, we are very interested in this feedback. Our goal is, of course, to promote it as a product around the world. In a sense, we will bring some global IPs, but we may also bring some local IPs from that specific region, so when Wonderverses open around the world, you will see similarities and differences."

Previously, Sony licensed IPs to develop attractions. In 2022, the Aquaverse project, a collaboration with Thai attraction developer Amazon Falls, officially opened. Last year, Sony developed the Jumanji zone for Merlin Parks and the Uncharted attraction for PortAventura World in Spain.




Warner Bros.: Multi-pronged Approach Balancing Breadth and Depth; Full Utilization of the Harry Potter IP
Warner Bros.' immersive layout can be described as multi-pronged, encompassing theme parks, offline entertainment venues, and online games. At the same time, popular IPs like Harry Potter are being developed in depth.

In February this year, Warner Bros. Movie World in Queensland, Australia, announced the launch of the world's first Wizard of Oz themed area, which will open in 2024. The area will feature a suspended roller coaster, a boomerang racer, and other attractions. The roller coaster, named "Wicked Witch's Flight," is inspired by the iconic villain from "The Wizard of Oz"—the Wicked Witch of the West.




Currently, there are three Warner Bros. theme parks worldwide, located in Queensland, Australia (1991), Madrid, Spain (2002), and Abu Dhabi, UAE (2018). Warner Bros. World Abu Dhabi is touted as the world's largest indoor theme park.


For the popular IP "Harry Potter," Warner Bros. has a series of diverse product offerings. Visions of Magic Interactive Art Tour: In December last year, Warner Bros. launched a 7-month tour, using immersive art installations to tell the story of Harry Potter with bold architecture and original visions.





The world's first Harry Potter flagship store: Opened in New York in 2021, this themed retail experience features interactive elements, themed areas, and handcrafted props, along with a large number of Harry Potter and Fantastic Beasts related merchandise.


Harry Potter touring exhibition: Has been touring the United States and Europe since its launch in 2022. This themed exhibition features 25 galleries, including recreations of scenes such as the Hogwarts Great Hall and Hagrid's Hut, with costumes and props. Guests can use RFID wristbands to activate unique experiences in each gallery.


Outdoor "Harry Potter: Forbidden Forest Experience": Created by Warner Bros. Discovery in collaboration with Thinkwell, a subsidiary of TAIT Group (an independent guest experience and entertainment project delivery organization), it first opened in the UK in 2021. Participants immerse themselves in the magical creatures and magical wonders from the "Harry Potter" and "Fantastic Beasts" films. It is currently available in multiple locations worldwide.





Warner Bros. World Abu Dhabi exclusive Harry Potter zone: Warner Bros. announced this news in 2022. The Harry Potter themed park will coexist with the existing six immersive experiences: Warner Bros. Plaza, Bedrock, Dynamite Gulch, Cartoon Junction, Gotham City, and Metropolis. The park will recreate iconic locations from the magical world.




Last year, Warner Bros. Discovery (WBD) planned to collaborate with Cosm Technology, a global technology company that aims to provide immersive experiences for sports and entertainment, science and education, and parks and attractions, to launch an immersive "shared reality" dome venue for sports viewing experiences. Two venues will open in 2024, allowing sports viewers to watch live games on an 8K screen dome and play some selected games.


Paramount: Launching The Paramount+ Lodge, Providing Themed Experiences for Fans
This year, Paramount will launch the immersive event The Paramount+ Lodge in multiple locations across the United States, providing fans with themed, immersive experiences.

Since 2023, Paramount has opened The Paramount+ Lodge in the United States for two consecutive years. This year, Paramount lodges will be set up in six cities across the United States, including pop-up shops at SXSW in Austin, Texas, and San Diego Comic-Con.

The Paramount+ Lodge is an iteration of Paramount's Mountain of Entertainment™ event. As the broadcast and streaming home for Super Bowl LVIII, Paramount brought its iconic "Mountain of Entertainment™" brand to Las Vegas for a four-day immersive fan event.

Based on information from various sources, the highlights of The Paramount+ Lodge include:

1) Six pop-up experiences will offer diverse elements, connecting visitors with Paramount movies and shows. For example, participants will be able to sit in the iconic captain's chair from "Star Trek: Discovery" and play bowling in the KNUCKLES universe.

2) As Paramount+ is the streaming home of Nickelodeon, Paramount+'s The Lodge will feature an oversized Frosty Nick area, where popular children's films will be vividly presented through interactive touchpoints, merchandise giveaways, fun photo opportunities, and more.

3) At the interactive booth, The Lodge Confessional, users will share their thoughts, strategies, and personal experiences like the cast of "Survivor," with a chance to be featured on the show's official social media channels.

4) Access the world of CBS Sports from the Paramount+ bar.

Paramount previously owned and operated five parks in North America: Kings Island, Kings Dominion, Carowinds, Great America, and Wonderland Canada, but they have since been acquired by Cedar Fair.

Outside of North America, since 2008, Paramount has had plans to build parks in South Korea, the UK, Spain, and other locations. The opening of the theme park in South Korea has been repeatedly postponed since 2022 and is currently scheduled to open in 2025. News of Paramount projects entering China has also been ongoing.



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