Netflix's Immersive Experiences May Push Them 'Off Their Course,' IMAX CEO Raises Alarm: 'Hard To Do Things That Aren't Your Core Competencies'

Author: Benzinga Neuro | June 19, 2024 06:53am

Richard Gelfond, CEO of IMAX, has expressed skepticism about Netflix Inc.’s (NASDAQ:NFLX) plan to launch immersive retail experiences.

What Happened: During CNBC’s “Last Call” on Tuesday, Gelfond explained that it is difficult to dabble with projects that are not a company’s core competencies.

“Hard to do things that aren’t your core competencies…Running retail operations, restaurants, merchandising, that’s a different skill set, and I think you could find the streets littered with companies that went off their course,” he said.

Gelfond’s comments appeared after Netflix recently announced that the first two immersive venues, dubbed “Netflix House,” will open by 2025 at King of Prussia in Pennsylvania and Galleria Dallas, Texas. As per their press release, both these venues will occupy former department store locations and span over 100,000 square feet in area.

"Running retail operations, restaurants, merchandising, that's a different skill set, and I think you could find the streets littered with companies that went off their course," says @IMAX CEO Richard Gelfond on $NFLX planning immersive experiences. $IMAX pic.twitter.com/nVm34IvsNs

— Last Call (@LastCallCNBC) June 18, 2024

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Why It Matters: Netflix’s plan to launch immersive venues was revealed last year. These establishments are intended to allow fans to explore their favorite TV show universes, purchase merchandise, enjoy themed cuisines, and even participate in activities such as a Squid Game-inspired obstacle course. Netflix’s VP of consumer products, Josh Simon, stated that these venues would offer shopping, dining, and live events.

The first two venues are expected to open in the U.S. by 2025, with plans to expand globally thereafter. This move comes as Netflix continues to see high engagement on its platform, with viewers watching more than 90 billion hours of content in the second half of 2023, according to its biannual engagement report.

Price Action: As of Tuesday, Netflix’s stock closed at $685.67, marking a 1.46% increase since its previous close, according to Benzinga Pro.

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Photo courtesy: Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Posted In: NFLX