FORTUNE -- Ask any parent who is a Netflix subscriber, and there's a good chance they'll tell you that the video-streamer is much stronger on kids' programming than on adult fare. The difference grows a bit starker with Netflix's new deal to run 300 hours of original animated programming from DreamWorks.
The deal will give Netflix (NFLX) exclusive, first-run rights to the programming starting in 2014 with shows based on characters from DreamWorks' (DWA) movies. Already in the works was a TV adaptation of the upcoming feature Turbo in December.
The agreement strengthens Netflix's positions in both kids' shows and original programming -- its biggest successes in the latter category being the series House of Cards and Arrested Development. Netflix last year announced that it had struck a deal with Disney (DIS) to provide theatrical releases from Disney, Pixar, and Marvel starting in 2016. Between that deal and the latest one, Netflix now has the two biggest animation studios in its stable.
Such deals, along with plans for more original programming, have pushed Netflix shares up by 244% over the past year. Today alone, the stock has risen by more than 7% as of midday.
Michael Pachter, analyst with Wedbush Securities, remains unimpressed. Netflix remains exposed to rising content costs, he notes. And that's true for original programming as for the rights to existing content. He notes that Netflix "does not own the rights to the underlying content, but instead agrees to fund a portion of the development costs in exchange for the rights to exhibit the content on an exclusive basis for a limited period of time. We continue to believe that Netflix's original content deals are costly, and although we believe that they will serve to add subscribers for the company, it is not clear to us that original programming will have a lasting benefit."
Pachter is hardly alone in his assessment. Netflix's highly uncertain prospects have made the company among the most hotly debated among investors, resulting in sometimes-dizzying volatility.
You likely haven't heard of one of the most ambitious startups to emerge this year. ToyTalk wants to revolutionize talking toys.
FORTUNE -- Talking toys are a dime a dozen. But intelligent talking toys? Not so much. The amount of computer code and processing power needed to pick up on the nuance of human conversation -- even one with a child -- is vast. More importantly, being entertaining requires different skill sets MOREJP Mangalindan, Writer - Feb 22, 2013 6:51 AM ET
The reporter who knew Jobs best discovers a trove of forgotten interviews
Rummaging through a storage shed after Steve Jobs' death, Brent Schlender came across a few dozen interview tapes he had made during 25 years of covering Apple's co-founder for the Wall Street Journal and Fortune. Some were as long as three hours. Some had never been transcribed.
Schlender drew heavily on those recordings to produce Fast Company's May cover story MOREPhilip Elmer-DeWitt - Apr 18, 2012 5:52 AM ET
Judging from the stock price, the company is only as good as its last hit product
Asymco's Horace Dediu spent much a recent trip to London talking to dozens of buy-side analysts. Not to be confused with sell-side analysts, these are people who control trillions of investment dollars and never share their thoughts or strategies in notes to clients.
He came out of those meetings convinced that the investment thesis of the MOREPhilip Elmer-DeWitt - Nov 22, 2011 8:14 AM ET
The new board member was granted restricted shares worth $55,000 and change
According to a Form 4 filed with the SEC on Thursday, Disney (DIS) CEO Robert Iger received as part of his new position on Apple's board of directors 142 restricted shares that vest next February.
At Apple's (AAPL) closing price of $388.83 Tuesday, the day the shares were issued, the grant was worth
142 * $388.83 = $55,213.86
That's comparable to MOREPhilip Elmer-DeWitt - Nov 18, 2011 8:19 AM ET
Former Pixar engineer Pat Hanrahan has found a new calling organizing and analyzing business data, and bringing the information to life.
By Richard Nieva, contributor
FORTUNE -- How many enterprise software executives can brag that they have been feted by Hollywood? At least one: Pat Hanrahan, a Stanford University professor and co-founder of Seattle-based Tableau Software, earned a Scientific and Engineering Academy Award for visual-effects technology he designed while working at Steve MORENov 15, 2011 5:00 AM ET
Fortune contributor Brent Schlender shares some of the stories and personal photographs he collected during more than two decades as Steve Jobs' chronicler and confidant.
FORTUNE -- Most of us who wrote in depth about the brilliant career of Steve Jobs sooner or later came to realize that we were complicit in the making of a modern myth. You simply couldn't avoid it. And while it is true that Jobs was MOREOct 25, 2011 5:00 AM ET
Fortune's Kindle book is a treasure trove of vintage Steve Jobs vignettes
"Contempt" is probably the word that best describes Steve Jobs' attitude toward the press. But he courts the publications he cares about, and over the years one of the magazines he courted most assiduously -- at least until a certain 2008 cover story -- was Fortune.
While at Apple (AAPL), NeXT, Pixar and Apple again, he gave Fortune's writers and editors MOREPhilip Elmer-DeWitt - Sep 28, 2011 6:45 AM ET
A rare glimpse at what he had in mind for the company nine months before his return
The spring and summer of 1996 was an important period of transition for Steve Jobs. Pixar, which had gone public the previous November, had lost half its market cap. NeXT was collapsing. And in a matter of months Jobs would sell what was left of the company -- its NextSTEP operating system -- to MOREPhilip Elmer-DeWitt - Sep 18, 2011 2:31 PM ET
FORTUNE -- When Steve Jobs stepped down in August as Apple's CEO for health reasons, it got us thinking about the arc of his spectacular career. His product presentations became rock star events that continually disrupted the industry. --Anne VanderMey
Here are a few of our favorite facts about Steve.
1.7 MB: The memory of Apple's Lisa in 1983 -- enough for one or two photos. The PC's price tag? $10,000. MORESep 9, 2011 5:00 AM ET
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