The streaming service Netflix continues working to develop lasting entertainment properties after missing out on Warner Bros Discovery’s extensive collection of beloved characters and storylines.
Netflix’s Chief Creative Officer Bela Bajaria explained the company will continue funding original concepts and collaborating with established studios including MGM and Warner Bros to create films and shows with staying power similar to “Stranger Things,” “Wednesday” and “Bridgerton.”
“To me, that’s just continually the goal,” Bajaria stated during a recent interview.
The unsuccessful effort to purchase Warner Bros’ legendary film studio and HBO exposed a weakness for the streaming company, which has built its original content library over roughly twelve years compared to more than 100 years of stories and characters owned by Warner Bros, Walt Disney and Universal Pictures. Netflix was prepared to make its largest financial commitment ever at $72 billion to strengthen its content library and add intellectual properties like Harry Potter and “Game of Thrones,” since developing successful franchises has proved difficult.
Discussions with 16 current and former Netflix leaders, industry professionals and representatives reveal the streaming company’s approach of creating content for diverse audiences simultaneously differs from developing interconnected content universes like Taylor Sheridan’s “Yellowstone” spin-offs that attract dedicated viewership.
However, Netflix’s prominent producer Shonda Rhimes has successfully transformed Julia Quinn’s “Bridgerton” books into a series now entering its fifth season, complete with a spinoff and touring experience set in Regency-era London called “The Queen’s Ball.”
Entertainment franchises provide value to companies as lower-risk ventures that generate additional income through product sales and live experiences. Well-known characters and storylines also capture viewer attention in today’s crowded media environment filled with countless entertainment options.
Netflix revealed its first significant purchase, comic book publisher Millarworld, one day before Disney announced in August 2017 it would remove its films from the streaming platform to launch its own competitor, eventually named Disney+.
“Stranger Things” has achieved remarkable success, generating a spinoff series, stage production, and merchandise. Netflix highlights additional examples including the action film “Extraction” featuring Chris Hemsworth, which spawned a sequel and third movie currently in development, plus a series starring French actor Omar Sy. The long-running dating program “Love Is Blind” has been adapted for international markets, including versions in Brazil, France and Japan.
Some expensive ventures failed while building original franchises, including the reported $700 million agreement to obtain rights to Roald Dahl’s collection, featuring cherished children’s tales like “Charlie and the Chocolate Factory.” This investment hasn’t created a major success in five years, though Netflix plans another attempt this year with a Willy Wonka-themed reality program called “Golden Ticket” where contestants navigate challenges and temptations on a set featuring a chocolate river.
Creating reliable hits that generate new series helps attract and keep subscribers while boosting engagement, which increased only 2% during the second half of 2025, according to media consultant Owl & Co. Overall growth has slowed, with revenue projected to rise 13% this year based on LSEG data, compared to 16% in 2025, while advertising sales account for just 3% of total revenue. YouTube’s growing popularity presents competitive pressure. YouTube and Disney, with its collection of famous characters, have consistently surpassed Netflix in television viewing share since October 2024, according to Nielsen’s media distributor measurements covering broadcast, cable and streaming.
Adding complexity, Paramount Skydance is purchasing Warner Bros, potentially reducing suppliers of original programming.
Using a $2.8 billion gain from the unsuccessful Warner Bros transaction, Netflix Co-CEOs Ted Sarandos and Greg Peters will maintain their independent approach. Upcoming releases feature established characters and stories, including a live-action “Scooby-Doo” series and a “Narnia” film based on C.S. Lewis books directed by Greta Gerwig.
“The Electric State” demonstrates an expensive failure highlighting the risks of attempting to create an extensive Marvel-style cinematic universe.
Netflix recruited Joe and Anthony Russo, the directors behind Disney’s successful Avengers films and Netflix’s “Extraction,” to adapt the acclaimed science-fiction novel, casting “Stranger Things” star Millie Bobby Brown alongside Hollywood star Chris Pratt.
Critics harshly criticized the $320 million film upon its release last year. Plans to expand the property further, including potential spinoff series and sequels, never developed, according to two sources directly familiar with the project who requested anonymity to protect professional relationships.
“A lot of people have big movies that also are IP that don’t work,” Netflix’s Bajaria commented. “We’re in the film and TV business, so a lot of things work, a lot of things don’t work.”
Other risks, such as Netflix’s choice to approve “Squid Game,” a dystopian thriller from creator Hwang Dong-hyuk that other companies had rejected, succeeded tremendously by creating a worldwide phenomenon.
Through its massive content volume, Netflix also experiences unexpected successes, like Sony Pictures Imageworks’ Oscar-winning animated film “KPop Demon Hunters,” which became the platform’s most-watched movie ever last year.
When breakthrough success occurs, the company can utilize its extensive global reach and advanced algorithm to build excitement for content that viewers start binge-watching, helping create cultural moments.
Netflix is developing “KPop Demon Hunters” as its next major franchise, featuring licensed merchandise from Mattel and Hasbro, themed adult meals from McDonald’s, a potential concert tour and a planned animated sequel.
However, the success surprised Netflix, according to two sources. The company actually lacked licensed merchandise to capitalize on the popularity during holiday shopping season. Netflix has stated in interviews that it contacted toy manufacturers and retailers a year or more before the film’s debut, but they were reluctant to invest in an unproven property.
During a March 18 presentation in Los Angeles, Netflix revealed its 2026 schedule, featuring a fourth “Bridgerton” installment, a second season of “One Piece,” an adaptation of the popular manga series, a live-action television series based on the “Assassin’s Creed” video game franchise, and a “Little House on the Prairie” reboot.
“We’re off to a strong start and feeling confident about the quality and consistency of our slate this year,” stated Jinny Howe, vice president of original series at Netflix.
