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Netflix, Inc. (NFLX),, Inc. (AMZN): Internet TV Giant Killing it in Kiddie Content

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Netflix, Inc. (NASDAQ:NFLX) is working quickly to differentiate itself on the content front. One area in which it’s locking up a leading position is kids’ television. Competitors like, Inc. (NASDAQ:AMZN)’s Prime service are going to find it increasingly hard to compete.

Netflix, Inc. (NASDAQ:NFLX)

Video Streaming or Television?

The line between video streaming and television is quickly blurring. The difference was quite distinct before Netflix, Inc. (NASDAQ:NFLX) made the switch from focusing on mail delivery of DVDs to streaming movies online. Just a few short years later, however, the company is clearly looking to be an Internet Television station.

The big turning point came when Netflix, Inc. (NASDAQ:NFLX) moved into content creation, with shows like Lilyhammer and House of Cards., Inc. (NASDAQ:AMZN) quickly followed suit, with plans for its own unique content. But a few self-created shows weren’t enough to differentiate Netflix, Inc. (NASDAQ:NFLX), or, Inc. (NASDAQ:AMZN), as a television station.


Netflix, Inc. (NASDAQ:NFLX) has also shifted away from bulk content deals, looking to lock up exclusive content that it believes will lure subscribers. To that end, it inked a deal with The Walt Disney Company (NYSE:DIS) for some of that company’s kids themed content. At the same time, however, it took a hard line with Viacom, Inc. (NASDAQ:VIAB), letting a content deal expire over the ability to be selective about what it was getting., Inc. (NASDAQ:AMZN) jumped on that event and signed on for Nickelodeon content, boosting its position with the kiddie set. However, with The Walt Disney Company (NYSE:DIS) already on board, Netflix, Inc. (NASDAQ:NFLX) could afford to let Nickelodeon content slip away. That said, the Amazon Prime offering, which somewhat oddly pairs free shipping with video streaming, likely has enough to keep cost-conscious customers from jumping ship.

That’s a win for, Inc. (NASDAQ:AMZN), though maybe not for investors., Inc. (NASDAQ:AMZN)’s shares are trading near all-time highs despite razor-thin margins in the low single digits. While a growing top-line is impressive, investors will likely jump ship if the company doesn’t figure out how to get margins back into the mid single-digits. Rising costs for content won’t help that effort, though Prime is clearly only a small part of the company’s overall business.

The Latest Deal

Netflix, meanwhile, has just inked a forward looking deal with Dreamworks Animation Skg Inc (NASDAQ:DWA). While the Disney deal provides an archive of content, Dreamworks Animation Skg Inc (NASDAQ:DWA) is going to create 300 hours of original content just for Netflix.

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