For decades, Disneyland and Universal Studios have offered fans one of the few places to physically step inside the worlds of their favorite films and series. And the business case has been clear: in 2024, Disney generated more than twice the operating income from its parks and experiences division ($9.27 billion) than from its entire entertainment and streaming operations ($3.92 billion). That return on experience has caught the attention of the broader industry - particularly as distributors and platforms search for new ways to extend the value of their IP.
Audiences have long shown a desire to engage more deeply with stories: IMAX, 4D cinema, and premium audio/visual formats have all emerged to bring viewers closer to the action. But now, the trend is accelerating - and expanding beyond the screen entirely.
In 2024, Netflix announced its own major foray into experiential media with “Netflix House” - two large-scale venues set to open this year in King of Prussia, Pennsylvania, and Dallas, Texas. Each space will offer over 100,000 square feet of interactive environments inspired by popular franchises like Stranger Things, Squid Game, and Bridgerton, complete with themed food, retail, and immersive storytelling experiences. It’s a clear signal that Netflix, like Disney, sees physical spaces as both a marketing vehicle and a direct monetization channel.
Virtual reality is also carving out a meaningful niche in narrative media. At the 2024 Venice Film Festival, the “Venice Immersive” program featured over 60 VR projects, showcasing how filmmakers are exploring new ways for audiences to experience stories from within. While still developing commercially, VR presents an opportunity for distributors to explore interactive licensing, cross-platform engagement, and world-building beyond traditional formats.
Perhaps the strongest signal yet came in 2025 with the Marché du Film at Cannes announcing its new Immersive Market, a dedicated hub for the distribution and commercialization of immersive and experiential content. The initiative not only legitimizes this emerging format but aims to facilitate rights deals, partnerships, and investment in experience-driven media - further reinforcing its relevance to global film professionals.
Experiential isn’t limited to full-scale theme park environments. Earlier this year, Apple TV+ staged a pop-up marketing activation for Severance in New York’s Grand Central Terminal. Commuters were greeted with a life-size replica of the show’s office, enclosed in glass and staffed by in-character actors - including stars like Adam Scott and Britt Lower. It was a PR masterclass in blending physical experience with fictional narrative - and a reminder of how effective immersive activations can be in cutting through digital noise.
What It Means for Distributors
As major companies invest in immersive and interactive media, the message is clear: audiences are eager for experiences that go beyond passive viewing. For distributors, this trend opens new opportunities - and raises key questions:
This shift is not just about technology - it’s about imagination. And with audiences already showing they’re ready to step inside the story, the next frontier of distribution may very well be physical.
