The streaming giant has acquired StoryBots, a children's educational media brand, for an undisclosed price in a deal that will expand its franchises into new areas and formats. The StoryBots deal is only the third acquisition in Netflix's history; the company bought comic book firm MillarWorld in 2017.
Netflix shares were down 0.5% to $362.61 on Thursday amid a wider market downturn on concerns about trade tensions between the U.S. and China. Disney shares were down slightly to $134.24 after reporting quarterly earnings on Wednesday after the close.
Back in 2016, Netflix's launched a children's show, Ask the StoryBots, which includes short educational lessons on a variety of topics.
"'Ask the StoryBots' has a proven track record of synthesizing complex subjects into bite-sized lessons that are funny and entertaining for young kids and satisfying for parents," Netflix's VP of original animation Melissa Cobb said in a statement about the acquisition.
Netflix is not particularly known for its family offerings, so the StoryBots buy extends its reach into children's programming. According to the Netflix aggregation site JustWatch, the "Netflix Kids" section includes about 230 series or films tagged as good for kids.
Several weeks ago, Disney took the wraps off its $6.99 per month Disney+ service, an explicitly family-focused offering that leans heavily on the entertainment giant's offerings across various media holdings, including Pixar, Marvel, Star Wars and Disney classics.
Launching in November, Disney+ will feature a library of approximately 8,000 movies or episodes, plus a number of originals, in year one.