Disney+ has gotten off to a fantastic start. They had over 10 million subscribers in less than a week and they have already created a viral meme with baby Yoda. 

However, one of their competitors is trying to attack the media titan from its most precious market: children.

That was made clear when Netflix made a deal with Nickelodeon. The popular children’s television program made a deal to create content using their characters for Netflix, including a SpongeBob SquarePants spinoff centered around Squidward. This move is something Netflix has done in the past, and it’s a market that may become the next focal point in the streaming wars. 

Netflix already had a deal with DreamWorks in place to create content based on properties like “The Boss Baby,” “How to Train Your Dragon” and “Trolls.” That deal with DreamWorks, currently owned by Universal-Comcast, also allowed for a show based on Dr. Seuss’ classic “Green Eggs and Ham.” 

Disney’s family library warrants no introduction as they have accumulated almost a century’s worth of family-friendly films and television programs. And they’re not stopping there, recently releasing new shows like “The Mandalorian” and “The Falcon and the Winter Soldier.”

With Disney’s endless library of family-friendly content, why would Netflix even try to compete? Well, children are driving the content landscape. Kids ages 5 to 8 watch on average 64 hours of television per day in 2018, while nearly 40 percent of parents say that they child has a smartphone in 2018, according to Statista. The number of kids with smartphones is bound to increase over time. 

That is to say that more kids are consuming programming online and on television. So, it makes sense to make programming for children on streaming services. In addition, there comes the adage of kids growing up with a programming and remembering said show fondly into adulthood. By making children’s shows and films, streaming services are creating fans for life. 

The main issue for Netflix is how it will deal with other streaming services increasing their children’s programs. HBO already owns “Sesame Street.” With its merge with Warner Bros to form HBO Max, they will have DC Comics’ library and Cartoon Network under their belt. Amazon Prime has plenty of children’s shows at their disposal and the ability to rent an endless line of films and shows. 

Universal’s “Peacock” is coming out in April along with HBO Max, and they could easily take back all programming around DreamWorks. Apple TV has a similar advantage, although they have yet to tap into the children’s market.

The bottom line is that Netflix is making the right call putting their (green) eggs (and ham) into the children’s market, even with Disney’s strong library. The only question is whether Netflix is ready to face competition from other streaming services entering as well. 

Published on November 26, 2019 at 4:03 pm

Contact Patrick: pagunn@syr.edu