) announced that it has collaborated with
DreamWorks Animation SKG, Inc.
) to stream an original series,
Fast Action Stunt Team
), exclusively for kids. This original series will be available
for streaming from December in the U.S. and abroad.
is based on DreamWorks' 3D comedy film bearing the same title. In
addition to the original series, Netflix will also stream new
DreamWorks movies in the U.S. Moreover, the current partnership
complements the earlier deal between Netflix and DreamWorks in
2011, which allowed the former to stream DreamWorks films and TV
Video streaming companies have recognized that kids make up a
significant chunk of TV show and film viewers. To capitalize on
this, Netflix launched its exclusive Internet video streaming
service for kids, 'Just For Kids' in 2011. In 2012, more than 2
billion hours of kids content was streamed for Netflix
Another close competitor of Netflix in the video streaming
), has recently announced its plans to produce five original
children shows through its film production division, Amazon
Thus, we believe that the current deal with DreamWorks
Animation will help Netflix to remain competitive in the
video-on-demand market. Netflix's new and exclusive content
offerings to its subscribers are the company's biggest USP
compared to some of its closest peers. Apart from recent movies
and documentaries, Netflix is also boosting its original content
portfolio to entice new subscribers in the U.S. and International
However, higher costs owing to international ventures and
licensing fees, and continued subscriber losses in its DVD
business are near-term headwinds. Mounting losses from the
international business, due to higher content and marketing
costs, is another concern in the short term.
Nonetheless, we believe that new streaming content [recent
) and original program portfolio] will help the company to
withstand stiff competition from other service providers such as
Amazon and HBO.
With its own content delivery network, Open Connect, Netflix's
video library will be directly connected to Internet service
providers, ensuring fast data transfer that would eventually
enrich the customer experience.
Currently, Netflix has a Zacks Rank #2 (Buy).
AMAZON.COM INC (AMZN): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
DREAMWORKS ANIM (DWA): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis
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