Netflix-Nickelodeon Deal Shows Viacom May Lack Direction
Last week, Netflix (NASDAQ: NFLX) announced a major partnership with Nickelodeon, owned by Viacom (NASDAQ: VIAB), as it continues its heavy content spending to try and win the streaming race. While the partnership should not be ignored by Netflix investors, the more important revelation could be to Viacom investors. Can you compete in the streaming war while simultaneously selling ammunition to your competitors?
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Netflix has agreed to a multiyear deal to utilize Nickelodeon's cast of characters to create original animated feature films and TV shows for distribution through Netflix's streaming service. According to the New York Times, the deal is worth somewhere north of $200 million. While the creation of original features is a first for the partnership, it's not the first time the two companies have worked together. Shows and movies from the Nickelodeon library like Rocko's Modern Life, Hey Arnold!, and Sam & Cat are currently available for Netflix subscribers to watch.
Source Fool.com
