LOS ANGELES, California: After failing to secure Warner Bros' vast catalog of characters and stories, Netflix is intensifying efforts to build its own long-lasting franchises as competition in the streaming industry intensifies.

Chief Creative Officer Bela Bajaria said the company will continue investing in original content while also partnering with studios such as MGM and Warner Bros to create films and series with enduring appeal, similar to "Stranger Things," "Wednesday" and "Bridgerton."

"To me, that's just continually the goal," Bajaria said in an interview.

Netflix's unsuccessful attempt to acquire Warner Bros. ' studio assets, including franchises like Harry Potter and "Game of Thrones," highlighted a key gap for the company, whose library spans just over a decade compared with the century-old catalogs of rivals such as Warner Bros., Walt Disney, and Universal Pictures.

The streaming giant had been willing to spend as much as $72 billion on the deal to strengthen its intellectual property base, underscoring how difficult it has been to consistently create franchises that endure.

Interviews with 16 current and former Netflix executives, industry leaders, and agents point to a strategy focused on producing a wide range of content for diverse audiences, rather than building tightly connected universes like the "Yellowstone" franchise created by Taylor Sheridan.

Even so, Netflix has seen success with certain properties. Producer Shonda Rhimes has turned Julia Quinn's "Bridgerton" novels into a franchise that now includes multiple seasons, a spin-off, and live events such as "The Queen's Ball."

Franchises are highly valuable in the entertainment industry because they carry lower risk and can generate additional revenue through merchandise and experiences, while also helping content stand out in an increasingly crowded media landscape.

Netflix made its first major step into intellectual property acquisition in 2017 with the purchase of comic book publisher Millarworld, shortly before Disney announced plans to launch its own streaming platform and pull content from Netflix.

Some of its in-house efforts have paid off. "Stranger Things" has expanded into spin-offs, a stage production, and merchandise, while the action film "Extraction," starring Chris Hemsworth, has led to sequels and further expansion. The reality series "Love Is Blind" has also been adapted for international markets, including Brazil, France, and Japan.

However, the company has also faced setbacks. Its reported $700 million deal for Roald Dahl's catalogue has yet to yield a major hit, though it plans a new Willy Wonka-inspired reality show, "Golden Ticket," in which contestants compete in a chocolate-themed setting.

The challenge of producing consistent hits comes as subscriber engagement growth slowed to 2 percent in the second half of 2025, according to media consultancy Owl & Co. Revenue growth is also expected to moderate to 13 percent this year from 16 percent in 2025, based on LSEG data, while advertising contributes only a small portion of overall revenue.

Competition is intensifying. YouTube and Disney have outpaced Netflix in television viewing share since October 2024, according to Nielsen data. Meanwhile, Paramount Skydance's acquisition of Warner Bros could further reduce the pool of content suppliers.

Despite missing out on the Warner Bros deal, Netflix is continuing to invest independently, supported by a $2.8 billion windfall tied to the failed transaction. Upcoming releases include a live-action "Scooby-Doo" series and a "Narnia" film directed by Greta Gerwig.

The risks of building franchises remain high. "The Electric State," a $320 million film starring Millie Bobby Brown and Chris Pratt, failed to meet expectations, and plans for spin-offs and sequels were shelved, according to sources familiar with the project.

"A lot of people have big movies that also are IP that don't work," Bajaria said. "We're in the film and TV business, so a lot of things work, a lot of things don't work."

At the same time, unexpected successes continue to emerge. "Squid Game" became a global phenomenon after being passed over by other studios, while the animated film "KPop Demon Hunters" became the most-watched movie on the platform last year.

Netflix is now positioning "KPop Demon Hunters" as its next major franchise, with merchandise deals, themed promotions, and a planned sequel, though initial success caught the company off guard, limiting early retail tie-ins.

At a recent presentation in Los Angeles, Netflix outlined its 2026 lineup, including a fourth season of "Bridgerton," a second season of "One Piece," a live-action adaptation of "Assassin's Creed" and a reboot of "Little House on the Prairie."

"We're off to a strong start and feeling confident about the quality and consistency of our slate this year," said Jinny Howe, vice president of original series at Netflix.