Netflix is expanding its presence in the toy business, striking its first master licensing deal with the company behind the popular Squishmallows plush toys to develop a product line inspired by its hit science-fiction series ‘Stranger Things’.

The streaming giant granted toymaker Jazwares the right to develop a ‘Stranger Things’ collection, including figures, play sets, toy vehicles, costumes and stuffed toys, based on the series, which returns for its fifth and final season later this year, a Reuters report stated yesterday.

The licensing deal builds on ‘s relationship with the toymaker, which last year introduced its first ‘Stranger Things’-themed Squishmallows.

“The Duffer Brothers have created such an incredibly rich world that’s packed with ’80s nostalgia and pop culture references and great characters,” said Josh Simon, Netflix VP of Consumer Products, referring to Matt and Ross Duffer who created the series, “From a merchandise standpoint, and a product-creation standpoint, we really want to deliver that same level of storytelling and attention to detail to the fans.”

Netflix, which ignited the streaming video revolution that upended Hollywood, has adopted a time-honoured entertainment industry strategy of selling consumer products and experiences based on its most popular series. Its first franchise hit, ‘Stranger Things’, served as the model.

“It really kind of strengthens the brands and strengthens the excitement about the things people are watching on Netflix and falling in love with,” Netflix Co-CEO Ted Sarandos told investors in October 2023.

At Walt Disney, the entertainment company whose namesake founder made merchandising an integral part of its corporate strategy, consumer product sales accounted for 14 percent of the company’s operating income in its fiscal fourth quarter.