Netflix has partnered with Black White Orange (BWO), a brand licensing start-up, to boost its consumer products business in India and South Asia, as per Inc 42.
BWO was founded in 2015 by Bhavik Vora and will be tasked with establishing and developing Netflix's consumer product offerings in India, Sri Lanka, Pakistan, Bangladesh, and Nepal. The start-up provides services for retail, distribution, brand consulting, and creative solutions and helps brands strengthen their relationship with consumers.
BWO wants to create a unique merchandise experience for Netflix consumers, breaking away from the traditional mass-market strategy. "Being superfans ourselves, we are thrilled to give fans a new way to own a piece of their favorite stories," said Mitali Desai, chief operating officer (COO) and co-founder of Black White Orange.
Netflix has been focusing on its consumer products business for the last few years, launching an online store, Netflix.shop, in 2020 and hiring Josh Simon as its vice president (VP) of consumer products. The merchandise business has become an alternative source of revenue for entertainment brands globally. In its quarter 4 (Q4) earnings statement, Netflix stated its intention to continue developing additional revenue streams.
The development has weeks after it announced that it will end password sharing by end of this year, a major reason for its falling revenues, and plans to carry out an advertising-supported business model.
The streaming giant added 7.66 million net new subscribers in the December quarter of 2022, ending the year with 230.75 million subscribers globally. It also added 1.8 million subscribers in the Asia Pacific (APAC) region, where the new partnership with BWO is poised to give its consumer products business a boost. The entertainment merchandise business has been growing in recent years, with Disney earning $56.2 billion in retail sales of licensed merchandise globally in 2021. With the new partnership, Netflix is set to tap into this growing market, providing fans with new ways to own a piece of their favorite stories.
