Scalper1 News
Netflix ( NFLX ) has a growing audience among kids, and there’s upside in merchandising for programming partners Dreamworks Animation, Walt Disney ( DIS ) and others, says a Piper Jaffray report on trends in family media and toy purchases. According to the Piper Jaffray survey of 428 mothers on media and consumer products, Netflix accounted for 19% of kids’ video viewing, up from 14% a year earlier. “We believe Dreamworks ‘ ( DWA ) massive output deal to Netflix positions the company right in the center of a paradigm shift in youth entertainment,” said Stan Meyers, a Piper Jaffray analyst. Netflix has been investing in kids’ programming , including deals with Disney and Dreamworks. Piper Jaffray has buy ratings on Dreamworks, Disney and toy-maker Hasbro ( HAS ). It rates Mattel ( MAT ) at neutral. UBS, meanwhile, initiated coverage on toy makers Thursday, rating Mattel a buy with a price point of 36. UBS rates Hasbro neutral. IBD’s Leisure Toys-Games group is ranked No. 47 out of 197 industry groups. Hasbro has a Composite Rating of 94 out of a possible 99, while Mattel’s CR is 87. According to the Piper Jaffray survey, frequent moviegoers spend $481 annually on toys, 90% more than the occasional moviegoers. Nearly 80% of mothers picked Disney and its Pixar unit as their most preferred brand when selecting a film for their child. Scalper1 News
Scalper1 News