With Disney (NYSE: DIS) pricing its streaming service at $7 per month and $70 per year, there's been plenty of interest about how this might affect Netflix's (NASDAQ: NFLX) value proposition.
Streaming won't be a winner-take-all space, and Netflix remains a top offering in the category, but new entrants are hitting the market each year -- and the influx of competition highlights some of the platform's shortcomings. Family and children's programming is an area where Disney+ has a big advantage, and it looks like Netflix is moving to address that.
The streaming giant is teaming up with Viacom's (NASDAQ: VIA)(NASDAQ: VIAB) Nickelodeon division for a multiyear production partnership that will see the children's entertainment network bring new content to Netflix. The specifics of the deal haven't been made public, but some reports suggest that it will be worth more than $200 million for Viacom and will see big Nickelodeon properties, including a SpongeBob SquarePants spinoff, join the Netflix lineup. This looks like a smart venture for both companies, and it wouldn't be surprising to see it evolve into a deeper, longer-term partnership.