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Your Kid Is About to Hate Netflix

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Let's set aside the Arrested Development countdown at Netflix (NASDAQ: NFLX  ) for a moment.

Content travels both ways on the information superhighway, and young subscribers are going to be losing a lot of programming when Netflix's licensing deal with Nickelodeon parent Viacom (NASDAQ: VIA  ) expires on Wednesday. SpongeBob SquarePants, Jimmy Neutron, Rugrats, and other popular children shows will be zapped from Netflix's streaming vault.

Several of Viacom's other shows will leave as well, but you won't see too many people whining that MTV's Jersey Shore is going away next week. Kids are different. They latch on to their favorite characters, and they don't mind watching the same episodes again and again.

Well, your child, niece, or grandson is going to be in for a cruel awakening after firing up Netflix late next week and not seeing Patrick Star and Angelica Pickles in their queues. Parents who figured a Netflix subscription would be an easy way to get rid of scratched-up DVD discs are about to realize that streaming deals aren't forever.

In Netflix's defense, it's been planning for this moment. Netflix struck a deal with DreamWorks Animation (NASDAQ: DWA  ) that will do more than just offer up the computer animation studio's popular theatrical releases. An original series based on a DreamWorks Animation movie coming out this summer will begin streaming exclusively through Netflix later this year.

Netflix also corralled family-entertainment giant Disney (NYSE: DIS  ) in a deal reportedly worth about $300 million.

There may be a lull in the short term. The DreamWorks Animation deal is gradually kicking in this year. Disney offered up some breadcrumbs of content late last year, but the real deluge of Disney magic won't kick in for a few more years.

Thankfully for Netflix, it stands alone. There is no other comparably priced service that comes even close to matching the breadth of its content, and that also applies on the children's side. However, just as adults have learned to deal with popular streaming titles that go away on Netflix, it's now time for younger viewers to learn the same thing.

There's always money in the banana stand -- but not The Krusty Krab
The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

Read/Post Comments (3) | Recommend This Article (3)

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  • Report this Comment On May 18, 2013, at 10:24 PM, prginww wrote:

    Forget Google! Netflix will be the first tech stock to hit $1000/share. Everyone should have at least a 20% position in NFLX!

  • Report this Comment On May 19, 2013, at 12:57 AM, prginww wrote:

    You forgot to mention Dora the explorer and Diego

    Netflix is best used for babysitting by parents .

    Single people would jump to a la carte to YouTube soon.

    Also Tuesday Microsoft is launching the new Xbox which is said to offer microsofts own entertainment streaming content and licensing partnerships with different networks.

    Seriously $1000.00 :) in a perfect world yes but I would proceed with caution.

    Netflix does have a lot of content but most of which can be found free or on hulu or amazon.

    Biggest threat seems to be YouTube neither amazon or hulu.

    Google can push billions of dollars to push content and wipe netflix out.

    Hulu and amazon are too weak.

    People want cheapest and least cost option which provides most value.

    Search YouTube and you would find thousands of free movies.

    Stock market though is not dependent upon a firm's potential just pure speculation. Somebody is really pumping netflix up.

    Xbox has 46 million paying members just imagine potential there.

    Yesterday's there was MySpace today there is Facebook. Soon somebody would talk about netflix the same way. Studios would go to highest bidder and netflix would be in a pinch just a matter of time.

    Hold on to your seats remember sell in may ;) by 30th we would see what takes place with the stock price

  • Report this Comment On September 21, 2013, at 8:04 PM, prginww wrote:

    I switched from Netflix to Amazon Prime and Icouldn't be happier. They are offering a free trial right now if you want to check them out.

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