'Stranger Things' marked the beginning of a new era for Netflix

The original concept for what would become “Stranger Things” was rejected by more than 15 studios before landing a spot on Netflix original programming list.

A decade later, the show created, written and directed by Matt and Ross Duffer has become one of the most important cultural touchstones of the streaming era and has cemented Netflix as not just a competitor, but a leader in the space.

“People always talk about Netflix and [say] Our big moment was when we played 'House of Cards', and that was a big deal. But our real moment was when we put together 'Stranger Things,'” co-executive director Ted Sarandos said during the premiere of “Stranger Things”' fifth season in Los Angeles last month.

“'House of Cards' was great. It kind of told the world that we're going to make some really good TV shows,” he continued. “But with 'Stranger Things,' this was much closer to a 'Star Wars' moment. This is a show, characters that moved the culture, that spawned live events and consumer products, spin-offs and sequels.”

Released in 2016, “Stranger Things” is set in the 1980s and focuses on a group of high school students in a fictional rural Indiana town who must confront paranormal and supernatural events after the disappearance of their friend. In the mix are a young woman with psychokinetic powers who has escaped from a secret research laboratory, an alcoholic police chief trying to find the missing child, and a frantic mother.

Now, almost a decade later, the fifth and final season makes its staggered debut on Netflix.

Volume 1, consisting of the first four episodes, debuted over the Thanksgiving holiday and racked up 59.6 million views in the first five days, the biggest opening week for an English-language series on Netflix. It ranks third overall behind seasons 2 and 3 of the Korean series “Squid Game.”

In its second week on the platform, Volume 1 generated another 23.6 million views, topping the streamer's weekly charts, and each of the previous four seasons saw week-over-week viewership increases as fans rewatched previous episodes, Netflix reported.

“Stranger Things” Season 5 Volume 2, containing three episodes, arrives on Christmas, and the final episode, which runs just over two hours, is scheduled for New Year's Eve. The finale will be available to view in select theaters on New Year's Eve and Day.

Breaking with tradition, Netflix will not sell tickets to these screenings. Instead, more than 500 national cinemas will sell concession vouchers that will guarantee seats for screenings. These vouchers can be used for food and drink purchases at the venues. Additionally, theater owners will keep all the revenue from these purchases.

Netflix and exhibitors have clashed in the past over release terms, with the streamer not committing to extended theatrical release for films it wants to make eligible for awards competition.

“Nothing would make us happier than showing Netflix movies in our theaters,” AMC CEO Adam Aron said in a statement earlier this month. “We think it could be beneficial for everyone involved. But since we need to treat our existing study partners fairly, there is still a lot to work out to that end. Still, there is progress.”

“Stranger Things” has sparked a 1980s revival, reviving fashion trends, music and even discontinued food brands for a new generation.

When the series debuted, Netflix partnered with consumer brands to create T-shirts, mugs, plush toys, and the like, but worked predominantly with licensees. This means it was charging fees for other companies to design and manufacture the products, or participating in brand partnerships where no fees were exchanged.

In 2019, the company launched its own consumer products division and two years later its own officially licensed online store.

Coinciding with the release of the final season of “Stranger Things,” Netflix announced dozens of partnerships and collaborations with brands across the merchandise, retail and restaurant spectrum.

The streamer has turned to Lego, Funkomarshmallows, HasbroJazwares and Care Bears to bring “Stranger Things” toys and collectibles to fans of the series. Has clothing and lifestyle offers with Gap, Nike, crocodilesCoverGirl, Zara and Wrangler, among others, and food and beverage collaborations with companies such as Eggo, Doritos, Kellogg, Gatorade and starbucks.

“We're incredibly excited to partner with so many fantastic brands, offering fans (and fellow nerds) the largest collection of products and experiences in 'Stranger Things' history and one of our biggest campaigns yet as we celebrate the fifth and final season of this globally beloved series,” Marian Lee, Netflix's chief marketing officer, said in a statement earlier this month.

Outside of the commercial space, Netflix has delved into the live event space, bringing “Stranger Things” to life through an immersive experience that allows fans to explore Hawkins Lab and other iconic locations from the series. It is currently running in Abu Dhabi, United Arab Emirates, and will open in Mexico City next month.

There is also a play called “Stranger Things: The First Shadow”, which runs in London's West End from 2023 and in New York from this spring.

Additionally, Netflix has an agreement with Epic Games that has brought elements of “Stranger Things” to the popular online video game Fortnite.

Netflix's live events and products strategy is more than just a way for the company to generate revenue outside of its streaming subscriptions. It helps keep fans interested in its content during show breaks and between movie sequels, industry experts said.

This manual is not exclusive to Netflix, but it shows the maturation of the streaming service. “Strangers Things” isn't so much a model that can be adopted by every Netflix show or movie, but rather a gold standard for what's possible.

“[Netflix] They had some good shows early on ('Orange is the New Black' and 'House of Cards'), but it took them a couple years of trying before they came up with 'Stranger Things,'” Wedbush analyst Michael Pachter told CNBC via email. “They've had a lot of success since then, with shows like 'Squid Game' and 'Bridgerton,' but it was questionable whether they could settle on a formula for creating an original intellectual property.

“'Stranger Things' has remained a strong intellectual property throughout and has generated a lot of recognition,” he added.