The Post-‘Stranger Things’ Era Of Netflix Holds Both New Highs And New Challenges

When Netflix first decided to enter the world of original programming in February of 2013, it was an underdog. House of Cards had an excellent cast and esteemed creators, but it was on an internet streaming service, something that looked like a nail in a coffin in the traditional world of TV. Cut to nearly five years later, and neither Netflix nor television has been the same since. Since that first premiere, Netflix has developed a great reputation. Now its stars and shows consistently receive awards nominations, and the company’s originals are commonplace in conversations among both critics and mainstream audiences — something that no other streaming service has accomplished to the same degree as Netflix. However, even by Netflix’s high standards, the popularity of Stranger Things marks a new high and a new chapter for the company. And it’s unclear what that new chapter will bring as Netflix distances itself more and more from licensed content.

For years now, Netflix has had beloved originals. Because Netflix notoriously doesn’t release its numbers, we don’t know exactly how many people watch every original, but monitoring the conversations, social media impact, and awards attention around Netflix originals has given us a tiny peek into the company’s success. There are shows like House of Cards, Orange Is the New Black, and Narcos that have gained critical and awards attention while holding a substantial place in mainstream conversations. Then there are shows like Bloodline, BoJack Horseman, Dear White People, and perhaps The Crown — shows that may be more designed for critical praise than mainstream appeal. Then there’s the third branch of this arc, which is composed of shows like Ozark, 13 Reasons Why, and Fuller House — shows designed more for mainstream attention than anything else. There are hundreds more hits and misses that are missing from this quick assessment, but the point is Netflix has been very successful for a very long time. But even in this crowded landscape, the runaway success of Stranger Things is unprecedented. Both seasons of the show weren’t merely praised by audiences. They dominated conversations in a way Netflix has never experienced before.

There were a lot of things working to make Stranger Things the surprise hit it was. It was a sci-fi show with horror elements starring a group of boys in the ’80s, a premise that immediately brought Stephen King and Steven Spielberg to mind. It was packed with that drug modern audiences love so much — nostalgia. But more than possibly anything else, the first season of Stranger Things aired during the TV dead zone that was the summer of 2016. Season 1 could dominate conversations because it had the space to.

During an interview at the UBS Conference, Netflix Chief Content Officer Ted Sarandos said that he knew they had something special with the show, but no one predicted its overwhelming success. “We knew it was going to have a broad appeal, but I was surprised at the level of social-media engagement and excitement that the show created and continues to create,” he said in December of 2016. Netflix was quick to pivot and went from treating Stranger Things like just another show to forcefully promoting it. Soon the Stranger Things kids were making appearances on late night shows and red carpets, officially licensed games and toys announcements appeared, and Netflix took one of the biggest promotional gambles in its history — a Super Bowl advertising spot that was estimated to cost nearly $5 million.

It all worked. The below chart tracks the Google Trends for five of Netflix’s biggest shows: House of Cards, Orange Is the New Black, Narcos, Fuller House, and Stranger Things. It starts a week before House of Cards‘ February 3, 2013 premiere and ends on November 17, 2017. For the most part, every show’s spike marks the premiere of a new season. The spike for Stranger Things Season 2 is astronomically bigger than any other search spike Netflix has seen:

That’s not just a big jump for Netflix. It’s a huge amount of interest for a show in general. Here’s how Stranger Things has fared against some of the biggest shows on television — Game of Thrones, The Walking Dead, American Horror Story, and Shameless — since it premiered last summer: 

Stranger Things isn’t just a well-loved show. It’s a mega hit that may one day have the same level of obsessive popularity as HBO’s Game of Thrones. That’s huge for Netflix, and it’s already started to change how the company operates. In an interview with The Hollywood Reporter, an unnamed source revealed that the viral success of Stranger Things has changed the way Netflix thinks about its originals. Specifically, the company has found another revenue stream through merchandising that it wasn’t tapping into before. In his excellent piece, “In Netflix’s Upside-Down, Stranger Things Is A Hit Before It Even Premieres,” The Ringer’s Victor Luckerson speculated about just how successful the show was to the streaming service, saying that, according to Symphony Advanced Media, Stranger Things saw roughly 14.07 million adult viewers. The Duffer brothers’ show is a really big deal for Netflix right when Netflix needs a really big deal.

At the moment, Netflix is in an odd position. While it’s spending more money on originals than ever before (Netflix has said it may spend up to $8 billion on original and licensed content next year), its library is shrinking. Most of Fox and FX’s shows have left the streaming service. Scripps Network content, like shows from HGTV and the Travel channel, is gone. Even Netflix’s much-hyped Disney deal is set to expire in 2019. All of this is happening during a time when Netflix is raising its prices yet again. Netflix is depending on an original runaway success like Stranger Things to convince subscribers they should stay. It’s a strategy that’s worked for cable for years. HBO only really needs Game of Thrones to keep subscribers paying month to month. People will tune in for Westeros but keep the service around for HBO’s other stellar originals and great movies. Netflix needs a good hook, and during a time when the future of its flagship drama is uncertain, Stranger Things makes for a great one.

Stranger Things has proven that it may be able to compete with the biggest shows on television, but only time will tell if Netflix will be able to keep up its lead. Your friendly streaming service is no longer TV’s underdog. Though it’s unclear how that fact will change the service, change is sure to come.

Stream Stranger Things on Netflix