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Netflix (NFLX) Buys Roald Dahl Story Company, Expands Portfolio

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Netflix (NFLX - Free Report) 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 - Free Report) streaming service, Disney+, has also been successful in attracting family viewers.
 

Netflix, Inc. Price, Consensus and EPS Surprise

Netflix, Inc. Price, Consensus and EPS Surprise

Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote

 

ViacomCBS’ (VIAC - Free Report) streaming service, Paramount+, is another contender, courtesy of Nickelodeon’s huge content library as well as reboots of old classics. Apple’s (AAPL - Free Report) 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.


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