Analyst Says Netflix Is Dependent on Kids TV, Suggests Limiting Content

  • According to Todd Juenger, an analyst for Sanford C. Bernstein, “Netflix seems highly dependent on kids TV” content. Because of that, he advises Disney and Viacom to make their content more expensive or limited.
  • “His advice for entertainment companies is to be cautious about how much kids programming they make available to the online video streaming provider and in which windows,” according to The Hollywood Reporter. “We remain firm in our belief Viacom and Walt Disney should limit their content availability on Netflix,” writes Juenger.
  • Bernstein hosted focus groups to analyze how mothers are encouraging their kids to intake content. Of these findings, Juenger notes: “Moms are increasingly directing their kids to alternative viewing modes for content control, commercial avoidance and time management. The moms we talked to originally subscribed to Netflix for themselves, but have recognized the dwindling supply of content for adults and are now using the service primarily for their kids.”
  • “The content selection is perceived to be significantly better for kids than for adults, and the lack of commercials and ability to control the viewing choices are seen as positives,” he adds.
  • But for Disney, Viacom and others, it’s more financially beneficial to have viewers watch on traditional TV or through Video On Demand services. When these companies renegotiate deals with Netflix, according to Jeunger, they should either limit the availability of kids’ content on the streaming service or increase prices to compensate for falling ratings.

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