Following The Container Store’s successful partnership with Netflix show Get Organized withThe Home Edit, the bond between streaming and e-commerce seems to have tightened. As consumer demand for seen-on-TV products grows, can streaming services double as online retailers?
Netflix is no stranger to brand partnerships, but its latest collaboration with The Container Store produced an unprecedented sales surge that could set the stage for future retail partnerships. Following the release of Get Organized withThe Home Edit, a show focused on aesthetically pleasing home organization, consumers rushed to The Container Store to purchase many of the items featured in the show, leading to a sales surge of 16.8% for the retailer. While the show’s premiere during the Coronavirus pandemic—when more consumers are at home and undertaking home renovations—could play a part in the successful sales, Netflix could also attribute the success to growing consumer interest in bringing goods from their favorite shows into their real life. Organizing brand partnerships that are consumer-driven could lead to increased demand for product placement on streaming. As services like Netflix and Amazon continue to gather consumer data, they could use the information to target product partnerships toward specific audiences, which could increase the chances of sales according to a Gartner report.
Like Netflix, Amazon has a history of product partnerships, including a collaboration with Cheez-It this past summer where viewers could win free boxes of the snack in exchange for watching Amazon Prime Video. Whereas Netflix viewers have to go to a specific store or website to purchase products seen on its show, Amazon’s streamlined strategy allows customers to watch videos and purchase items on the same platform. With consumers spending more time streaming this year than ever before, the future path to purchase could lie in e-commerce and streaming hybrid models like Amazon. Other platforms, such as Disney+, Hulu, or Peacock could introduce similar partnerships, as well, which may further move streaming into the e-commerce arena. As for retailers and other brands, aligning with streaming services could help them stay relevant in an increasingly virtual world, particularly as consumer demand for e-commerce overtakes in-store shopping during the Coronavirus pandemic. By allowing consumers to see a product on a streaming show and then order it online, partner brands could gain sales, while streaming services could boost viewer engagement.
Retailers have had a rough year as foot traffic and in-store sales dwindled during the pandemic, but with streaming services eager to spotlight well-known brands on their shows, retailers could have a new future. Additionally, with consumers staying home to watch shows and shop, the present could prove the perfect time for retailers to merge e-commerce with content streaming.