Global streaming company Netflix has acquired the Road Dahl Story Company in what is believed to be one of the streaming company’s largest ever acquisitions.
The acquisition presents a huge strategic opportunity for Netflix for two key reasons. First, Road Dahl’s work have global appeal, his books have sold over 300 million copies and have been translated into 63 languages.
DAHL PROVIDES NETFLIX WITH GOLDEN TICKET
He is considered an iconic figure in the world of children’s fiction whose work has formed the basis for numerous animated adaptations.
Netflix’s previous deal with the Road Dahl Story Company provided the former with the animated rights to 16 of Dahl’s works.
Second, Road Dahl’s literary works transcend different age groups, appealing to the whole family. This means the numerous product offerings that Netflix will create from his stories will have huge market appeal.
The Covid pandemic has accentuated the structural shift away from linear television to streaming. The competition for customers amongst Amazon Prime, Netflix and Disney is immense.
Original content is a key differentiator and determinant of market share gains for these competing streaming companies. In this respect the Road Dahl acquisition represents a shrewd strategic move for Netflix.
Disney, for example has benefited from offering content that children repeatedly watch, thereby providing parents with a rationale to remain loyal subscribers to Disney+.
NETFLIX COULD REAP THE BENEFITS OF SPIN-OFFS
The acquisition announcement makes it clear that Netflix will leverage Road Dahl’s work to create more than animated and live action films and TV productions. Consumer products and games spin-offs from the live screen creations could generate significant additional revenue potential for Netflix.
