Leading toy maker Hasbro Inc. (HAS - Free Report) recently extended its multi-year partnership with Netflix, Inc. (NFLX - Free Report) , the provider of online movie rental subscription services. According to the agreement, Netflix will exclusively stream Hasbro Studio’s (Los Angeles-based production division of Hasbro that develops and produces television programs based on Hasbro's brands) five renowned kids shows including My Little Pony Friendship is Magic, Littlest Pet Shop, Kaijudo: Rise of the Duel Masters Transformers Prime and Transformers Rescue Bots in the U.S. and Canada. Financial terms of the deal were not disclosed.
Hasbro Studio’s two favorite programs, Littlest Pet Shop and Kaijudo: Rise of the Duel Masters will soon be accessible by the Netflix members in the U.S. Other shows will be available in the latter part of 2013. Moreover, this is the first occasion when Hasbro Studios’ popular shows will be streamed in Canada by Netflix.
Previously in 2012, Hasbro entered into an agreement with Netflix. Under the contract, Hasbro Studios’ 10 hit animated TV shows were added to the kid section of Netflix that can be instantly watched online. Hasbro already has a strong presence in the entertainment area with its various famous TV series. With growing demand for online TV shows, we believe that these kids programming agreement will be beneficial for Hasbro as it will further widen the reach of its products in the digital world.
Hasbro has a strong product line-up including core owned brands as well as key licensed brands and lucrative product associations with social game developer Zynga, Inc. and mass media company, CBS Corporation (CBS - Free Report) . All these factors ensure that the company remains well positioned for future growth. Greater focus on Entertainment backed products should bode well, going ahead.
Hasbro currently carries a Zacks Rank #3 (Hold).