Challenging Disney+ (DIS) - Get Report , Netflix (NFLX) - Get Report is bringing a well-known children's media brand aboard. 

Netflix and Nickelodeon signed a multi-year agreement to create original shows for the streaming giant, which would boost its offerings for kids. Netflix shares closed 3.05% lower on Wednesday to $283.11.

In a blog post announcing the deal, Netflix described it as "a new, multi-year output deal to produce original animated feature films and television series -- based both on the Nickelodeon library of characters as well as all-new IP -- for kids and families around the world." 

The announcement comes on the heels of the Disney+ launch on Tuesday

Anchored by Disney's extensive IP, which includes the Disney Channel, Walt Disney Pictures, Star Wars, Pixar and National Geographic -- Disney+ is viewed as the leading family-friendly choice in streaming. For Netflix, developing content around a well-known kid-friendly brand could be one way of boosting its appeal to families. 

"Nickelodeon's next step forward is to keep expanding beyond linear platforms, and our broader content partnership with Netflix is a key path toward that goal," said Brian Robbins, president at Nickelodeon, in a statement. 

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