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Netflix Just Did Something It Rarely Does

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May. 15 2019, Published 11:23 a.m. ET

Netflix bought a company that focuses on kids content

Netflix (NFLX) has been investing substantial capital to build the library of quality original content it currently has. The streaming giant did something different recently by acquiring StoryBots, a media company that focuses on kids’ educational shows.

Netflix’s investment in StoryBots makes sense, as Disney’s upcoming streaming service, Disney+, is likely to be focused on family content. Thus, Netflix also is beefing up content for that demography in the hope of retaining subscribers who prefer such content. Netflix’s platform will launch the third season of the program later this year. However, Netflix has not disclosed the amount it paid for the acquisition.

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Netflix’s growth is expected to slow

Netflix continues to see tremendous subscriber growth despite competition. The company has added a whopping 18.4 million paid subscribers globally, over the last two quarters.

However, the company expects to add only 5 million paid subscribers in the current quarter, out of which it expects to add only 300,000 paid subscribers in the US, where it will be facing intense competition, as Apple and Disney are slated to launch their respective streaming services later this year.

However, Netflix has a massive library of original content, which will take years of huge investments to match. Netflix’s stock is up 41.0% year-to-date.

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