“Stranger Things” and the surprising truth about hit-making

Nearly ten years after it first sent shivers down spines, “Stranger Things”, Netflix’s paranormal adventure, returned for its fifth and final season on November 26th. The quirky drama, set in Indiana in the 1980s, follows a group of intrepid youngsters who battle monsters from another dimension they call the Upside Down. (A nearby laboratory, disregarding health and safety, opened a portal between worlds.) The Duffer brothers, who created the show, were inspired by the science-fiction films of that era as well as tales of secret government experiments during the cold war.

“Stranger Things” was one of the streamer’s first big original hits and it is still going strong. In the first half of this year subscribers spent nearly half a billion hours watching the first four seasons. The show has swayed global culture. It has helped bring retro garb, such as oversized denim jackets, back into fashion. It has contributed to the growing popularity of “Dungeons & Dragons”, a fantasy role-playing game loved by the show’s characters. And it has influenced what people listen to. In 2022, after “Running Up That Hill” featured on the soundtrack for season four, streams of Kate Bush’s song surged by more than 8,000%. The song topped the charts in Britain almost 40 years after it was released.

The grand finale will be a cultural event, and an extra-strange one at that: on New Year’s Eve the last episode will be shown not just on Netflix, but in cinemas. Ted Sarandos, Netflix’s co-chief executive, reaffirmed his view in April that watching movies on the big screen was “an outmoded idea, for most people”. Yet as it tries to turn its popular shows into enduring franchises, Netflix increasingly sees a use for old-school platforms, from cinema to in-person events. Hollywood’s most high-tech company is using low-tech methods to make its shows travel farther still.

Netflix has created many original hits, from “Stranger Things” to “Squid Game”. With more than 300m subscribers around the world it has an ability like few others to inject ideas into global popular culture. But it has yet to find its Mickey Mouse or its “Star Wars”: the kind of triple-A-rated franchises that children want printed on their pyjamas and which they later introduce to their own offspring.

That would be a tall order for a company that has been making its own shows for little more than a decade. Netflix is nearly a century younger than most of its rivals; perhaps one day the demogorgons of “Stranger Things” will be as recognisable as Sir Ridley Scott’s aliens. In the meantime, one solution could be to buy some top-tier intellectual property from others. Netflix is said to have made a long-shot bid to acquire Warner Bros Discovery, whose back catalogue contains blue-chip megafranchises such as “Lord of the Rings” and “Harry Potter”, with vast fanbases and potential for spin-offs.

Yet Netflix has always preferred to build, rather than buy. So for now it is finding new ways to burrow its own brands deeper into the hearts of fans. “Stranger Things” is not the only Netflix project getting the big-screen treatment. “KPop Demon Hunters”, a hit anime musical that launched on the streaming service in June, was given a “singalong” cinematic release two months later, and got another short theatrical run over Halloween.

Guillermo del Toro’s “Frankenstein” film hit cinemas almost three weeks before it reached the small screen. “Wake Up Dead Man”, the new “Knives Out” movie, will follow a similar schedule. In 2026 “The Adventures of Cliff Booth”, a comedy-drama starring Brad Pitt, will probably get a cinematic release when it comes out in the summer, as will “Narnia” in the autumn.

Netflix has long paid lip service to the silver screen, giving about 30 films a year an airing at the cinema so they can qualify for Oscar nominations (a Best Picture gong still eludes the company). Theatrical runs also help lure star directors like Greta Gerwig, who was unwilling for “Narnia” to go straight to TV. Netflix is said to have promised Warner Bros that it would continue to release the studio’s films in cinemas, if its bid is accepted.

These days Netflix is able to negotiate better terms with cinema operators, too. Before covid-19, most insisted that films got a 90-day exclusive run in their auditoriums. These days they cannot afford to be so choosy. Some theatres are hiring out their screens to people who want to plug in their PlayStation for a birthday party. Showing a months-old movie like “KPop Demon Hunters”, or a TV episode like “Stranger Things”, is something they are willing to contemplate.

In the home, Netflix is reaching for other old-school tactics to heighten the buzz around its shows. One of its signature innovations was the simultaneous release of entire series, to enable bingeing. It now seems to take the view that, in some cases, the traditional practice of dripping out episodes increases excitement. Recent seasons of shows like “Bridgerton” and “Emily in Paris” have been released in two batches. The eight new episodes of “Stranger Things” will be dropped in three helpings—around Thanksgiving, Christmas Day and New Year’s Eve—to keep people in a state of fearful anticipation.

The streamer is giving its hit shows greater depth by commissioning spin-offs. Netflix may regret the end of “Stranger Things”, which has been responsible for more than $1bn in subscription revenue over the past five years, according to Parrot Analytics, a data company. But it will keep fans going with an animated offshoot, due next year, called “Tales from ’85”, as well as a live-action spin-off still in its early stages. Other high-performing series have been similarly fleshed out, with supporting projects including a reality competition show based on “Squid Game” and “Queen Charlotte”, a mini-series set, like “Bridgerton”, in Regency-era England.

Netflix is also creating more in-person experiences. For years it has experimented with temporary events, from “Bridgerton” balls to “Money Heist” escape rooms. On November 12th the streamer opened the first Netflix House, a kind of indoor theme park, in Philadelphia, where attractions include “Wednesday”-themed games and a restaurant serving Netflix-inspired dishes. A second branch, with a “Stranger Things” experience, will open on December 11th in Dallas. Las Vegas is next, in 2027, with other venues promised.

These are a far cry from Disney’s sprawling parks and resorts, which contribute the largest share of the firm’s profits. Netflix House is overseen by the company’s marketing department. The scope for shareable selfies—on velvet “Bridgerton” thrones, for example—will help keep brands top of mind between seasons. Netflix is “extracting incremental revenue from superfans while reinforcing a property’s position in the cultural conversation ahead of its next cycle”, says Christofer Hamilton of Parrot Analytics.

For all its experiments, Netflix remains convinced that streaming is the best way to create global hits. Historically, cinematic release has given movies a wave of publicity which they have ridden through video rental and then TV. But on a recent earnings call, Mr Sarandos mused that the hit-making process can now work the other way round. In the case of “KPop Demon Hunters”, he said, “It was the superfans who…repeat-watched the movie that drove the recommendation engine that got it in front of more superfans.” Viewing at home let audiences learn the songs, make up the dances and post them on social media—ultimately creating a film that people wanted to see at the cinema. “We believe that…‘KPop Demon Hunters’ actually worked because it was released on Netflix first,” Mr Sarandos said.

When it comes to “Stranger Things”, fans may want to witness the gang’s final showdown with Vecna, a terrifying psychic being, in a room with other people. Communal watching heightens the thrills and chills; of all the genres, horror is the one people still go to the cinema to watch. In the streaming age, the business of hit-making has gone into the Upside Down. ■