At mall, Netflix opening House for fans and new revenue stream

After years of telling consumers to Netflix and chill, the streaming giant now wants you get out of the living room and visit them at the local shopping mall.

- BY STEPHEN BATTAGLIO AND WENDY LEE

The company that upended the television landscape unveils its first entry into the “experiential” business this week, where consumers can wander through interactive game rooms and load up on food and drink inspired by their favorite Netflix hits.

The first Netflix House, a 100,000-square-foot space in the King of Prussia Mall, 20 miles outside Philadelphia, opens Wednesday.

The bright red entrance, a short walk from anchor department stores Macy's and Neiman Marcus, is meant to be an homage to the envelopes used to mail Netflix DVDs back in the day. Murals featuring Netflix characters were painted on the outside walls by local artists.

A second location is scheduled to open at the Galleria Mall in Dallas on Dec. 11 and another set for Las Vegas in 2027. Netflix co-Chief Executive Ted Sarandos has said he envisions the company opening as many as 60 Netflix House locations globally.

The expansion will be new ground for the company, which will eventually reach a saturation point in U.S. subscribers. Revenue growth may have to come through new ventures so that the company can rely less on raising subscription prices and advertising rates.