Business
Netflix's latest pitch: 'Squid Game' tracksuits, sneakers and whisky
In the Korean-language Netflix megahit “Squid Game,” debt-ridden people take part in a deadly competition — lying, cheating and killing one another for a life-changing pot of money.
How is the streamer promoting the second season of such an anti-capitalist show? By selling merchandise, of course.
Retailers and brands including Puma, Johnnie Walker and shoe-maker Crocs are hoping that interest in the show will drive sales of products based on the ultraviolent dystopian series.
On Wednesday, Puma announced a line of green tracksuits similar to the ones the characters wear onscreen, along with sneakers and other apparel inspired by the series. The German clothing retailer created the actual costumes for the show.
“We saw an opportunity for us to be more than just a partner of creating consumer products, being able to also be in the show and be part of this cultural moment,” said Puma spokesman Alberto Turincio. “Everyone knows what ‘Squid Game’ is. The fandom was just insane.”
Puma is just one of several global retailers and brands that are partnering with Netflix on merchandise inspired by its shows and movies.
For example, spirit maker Johnnie Walker created a “Squid Game” special-edition whisky, which features a teal label and “Squid Game” inspired cocktails including “The 456” which incorporates flavor form bori-cha, tea often served with Korean food.
Previously, Netflix has worked with outside companies to create “Bridgerton” bread mixes and “Stranger Things”-themed Scoops Ahoy ice cream. For Netflix, the products are a way of keeping fans engaged with their favorite programs and driving excitement.
Puma “Squid Game” tracksuit, sneakers and backpack. Puma “Squid Game” sneakers. Puma “Squid Game” backpack. (Netflix)
“The stories that are on Netflix end up becoming these cultural moments, and so I think people are excited to go along with us on that journey,” said Josh Simon, Netflix’s vice president of consumer products. “When they love it, they want to live it.”
Retail and consumer products are a growing business for Netflix. The company is hoping that selling T-shirts, booze and other items inspired by its programming will boost awareness for its programs while also providing additional revenue. Netflix has launched pop-up stores and restaurants to promote its shows and movies. It has created live events, including music performances, for similar purposes. Netflix said it has launched 40 unique attractions across 100 cities globally, reaching more than 7.5 million consumers.
Next year, the company will open permanent retail centers, called Netflix House, inside former department store locations in Texas and Pennsylvania that combine all those elements — food, merchandise and experiences based on Netflix programs. The company could eventually have 50 or 60 Netflix House locations globally, Co-Chief Executive Ted Sarandos said at the WSJ Tech Live conference in October.
The popularity of “Stranger Things” helped kick-start Netflix’s consumer products business as brands began reaching out to work with the company. In 2019, Netflix started its consumer products division and in 2021 launched a retail website. Over time, Netflix expanded its partnerships with more brands and hosted popular live events, including balls inspired by “Bridgerton.” It’s a playbook that was pioneered by Walt Disney Co. and copied by numerous others. Disney has a giant consumer products licensing business and at one time had hundreds of retail stores at malls across the country.
But unlike studios such as Disney, Netflix doesn’t have a large catalog of storied characters like Mickey Mouse, Woody from “Toy Story” and Elsa from “Frozen.” Also, Netflix’s most popular shows tend to be more adult-centric, and thus less obviously useful for retailers targeting children than Disney’s cartoons and Universal’s ubiquitous Minions.
But the streamer says the popularity of its adult-oriented programming is an advantage, because its viewers have disposable income and are willing to spend.
Netflix has a global audience of hundreds of millions of people, and its most popular shows have spurred shopping trends on their own. Fans have bought tracksuits to dress as “Squid Game” characters for Halloween or chess sets due to the fandom around “The Queen’s Gambit.”
Characters wear green tracksuits in Season 2 of “Squid Game.”
(No Ju-han / Netflix)
“We’ve earned a little bit of goodwill to place bets on newer movies and TV shows, just because the fandom can catch up pretty quickly,” Simon said.
Retailers have already seen success with Netflix-related products. Bath & Body Works sold “Bridgerton”-themed fragrance collections such as “Diamond of the Season” starting in March, with lotions, soaps and candles. Over the launch period, the “Bridgerton”-themed products represented 4% of Bath & Body Works’ U.S. store sales, the retailer said.
The brands fit really well together, and the “Bridgerton” products brought in new shoppers, said Betsy Schumacher, the retailer’s chief merchandising officer.
“It had this immediate attraction to our customers and drove traffic and excitement in our stores,” she said.
“Bridgerton” was one of the shows touted at a meeting with brands last month. There are “Bridgerton”-inspired wedding dresses, $70 teapots at Williams Sonoma and $65 dog jackets.
“We’ve done a lot, but we won’t pause here,” Elena Vrska, who works in consumer products marketing at Netflix, said during a presentation.
“Squid Game” Season 2 represents a major opportunity for Netflix and its brand partners. The first season was the most watched Netflix show ever, with more than 330 million views to date. This month, Netflix will launch marketing campaigns showcasing the iconic green tracksuits from “Squid Game,” including a 4.56K run (a reference to Player 456, the show’s main character) during the “Squid Game” season 2 premiere in Los Angeles next week.
“We are expecting to sweep the world with green tracksuits,” Joyce Salaver, who works in brand strategy in consumer products for Netflix, said in a presentation to brands last month. “We will create a massive cultural moment that only Netflix can do.”
Netflix’s deals with brands can vary. The streamer in some cases receives a licensing fee or a percentage of sales with minimum revenue guarantees.
Bath & Body Works’ Danbury shortbread “Bridgerton” collection.
(Netflix)
Larry Vincent, a USC Marshall School of Business marketing professor, said the licensees take on more risk generally than licensors such as Netflix.
“The real benefit of it is the exposure and the marketing value of more consumers and audiences aware that a program is active right now,” Vincent said. “You can think of these licensed merchandise extensions as just another marketing execution.”
In addition to working with brands, Netflix has its own in-house product development and creative teams that help with the products.
Matt Owens, co-showrunner and an executive producer of Netflix’s “One Piece,” said that when he was a kid, having action figures of movies and TV shows inspired him to reenact scenes and make up his own stories, which is how he started as a storyteller. Now, he’s working with Netflix on merch for his own live action series, based on the popular coming-of-age manga. One of the ideas he was involved with was “One Piece” trading cards based on the live action series that could be used in the “One Piece” card game. Owens said he has talked with brands regarding potential merchandise for Season 2 of the show but declined to name them.
Merch is “like a badge of honor” for fans, Owens said.
“It’s the same thing as wearing a jersey of a sports team,” Owens said. “It just adds that feeling that there are other fans all over the place.”
Business
A new delivery bot is coming to L.A., built stronger to survive in these streets
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
Business
Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
Business
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