Netflix (NFLX) Buys Roald Dahl Story Company, Expands Portfolio
Netflix (NFLX) buys Roald Dahl Story Company that adds some of the world-famous characters including Matilda, The BFG, Fantastic Mr. Fox, Willy Wonka...
Netflix NFLX recently announced that it has acquired Roald Dahl Story Company. The acquisition will add some world-famous characters to Netflix’s portfolio, including Matilda, The BFG, Fantastic Mr. Fox, Willy Wonka and The Twits.
Markedly, renowned director duo Taika Waititi and Phil Johnston are working on a series based on the world of Charlie and the Chocolate Factory. Netflix is also working on an adaptation of Matilda with Sony.
The deal expands Netflix’s content portfolio for children and family viewers. Children and family-oriented-shows have become important for streamers, having attracted more viewers as they were forced to stay at home due to disruptions caused by the pandemic.
Per a survey by TV industry analyst nScreenMedia of 3000 parents, families watch video content with children several times a week or more. 66% of parents expect the time spent watching content with kids to remain steady or increase post-pandemic.
The survey found that YouTube TV is the most popular platform for co-viewing. Thanks to a strong content portfolio that includes movies and shows from the Marvel Cinematic Universe, The Walt Disney’s DIS streaming service, Disney+, has also been successful in attracting family viewers.
Netflix, Inc. Price, Consensus and EPS Surprise
ViacomCBS’ VIAC streaming service, Paramount+, is another contender, courtesy of Nickelodeon’s huge content library as well as reboots of old classics. Apple’s AAPL streaming service, Apple TV+, is trying to gain footprint with the launch of three new shows – Wolfboy and the Everything Factory, Get Rolling With Otis and Puppy Place – this fall.
Netflix, which is currently facing stiff competition in the streaming space, is riding on a strong content portfolio, thanks to which it won 44 Emmys in total this year. The company’s endeavor to offer content belonging to various genres has been a key catalyst in driving user engagement, besides winning awards and accolades.
Netflix is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. The company plans to release at least one new original film every week in 2021.
Netflix plans to spend more than $17 billion in cash on content this year. Through the first half of 2021, the company spent $8 billion in cash on content, up 41% year over year. This Zacks Rank #4 (Sell) company expects to end the third quarter of 2021 with 212.68 million paid subscribers globally, indicating growth of 9% from the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>
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
Apple Inc. (AAPL): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
ViacomCBS Inc. (VIAC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research