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The Future of Netflix Isn't House of Cards, It's Shows for Kids

The Future of Netflix Isn't House of Cards, It's Shows for Kids
Photograph Courtesy Netflix; Illustration by 731

As anyone with a young child knows, a storybook or cartoon is the ultimate in “long-tail” media consumption: The 53rd rereading or re-watching is cherished just as much as the first time. And that’s good news for Netflix, according to a new report from Goldman Sachs.

The streaming-video giant has invested heavily in content for children at a time when kids are spending more time on mobile devices. Right now, only 3 percent of Netflix viewers are children, Goldman analyst Heath Terry wrote, “which leads us to believe that (1) the kids opportunity is large, and (2) Netflix is under-penetrated.” He upgraded the stock to buy on Monday.