) recently announced that it plans to launch a new animated series
for kids based on the
) franchise Ever After High. The new show will be streamed on
Netflix in early 2015.
Ever After High is a web series and a fashion doll franchise, which
was launched by Mattel in Jul 2013. However, in the Netflix series,
the characters will be based upon characters from fairy tales.
Netflix recognizes the fact that kids make up a significant chunk
of TV show and film viewers. To capitalize on this, the company had
launched its exclusive Internet video streaming service, Just For
Kids way back in 2011.
Per Netflix, the highly engaging storylines of Ever After High with
new twists to the plot and new characters will be quite
entertaining. We believe that this move will not only boost its
kids' portfolio but will also provide it an edge in this space over
) and Hulu.
Netflix recently partnered with the Scholastic Media to launch the
streaming of a new original TV series based on the iconic TV show
The Magic School Bus. The new show would be titled The Magic School
Bus 360 degrees
Over the last one year, Netflix has entered into partnerships with
major film studios and production houses like The Wachowskis
(creators of The Matrix trilogy), J. Michael Straczynski (Babylon
5), Gaumont International, Sony Pictures and The Weinstein Company
(TWC), apart from
) and Dreamworks.
These deals have helped Netflix to not only grow its content
portfolio but also to move into new segments such as comedy,
political thrillers, autobiographies and horror.
This has been the primary reason behind its success in the recent
times. Netflix added 11.89 million paid streaming subscribers over
the last 12 months. Its total streaming subscriber base increased
12.04 million year over year to 48.36 million, primarily driven by
its expanding content portfolio that includes original and popular
productions such as Arrested Development and House of Cards.
International expansion is another key growth driver for Netflix.
The company recently announced its plans to enter Germany, Austria,
Switzerland, France, Belgium and Luxembourg by the end of 2014.
However, starting operations in a new country demands huge
investments and increases marketing and general and administrative
expenses considerably. Netflix, therefore, expects the
international segment to continue to report a loss for the rest of
Nevertheless, Netflix's recent price increases (for both domestic
and international new users) will help the company to offset these
higher expenses. Moreover, the company's ever-expanding content
portfolio and focus on improving customer engagement will continue
to boost subscriber base.
Currently, Netflix has a Zacks Rank # 3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
AMAZON.COM INC (AMZN): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis Report
MATTEL INC (MAT): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.