Netflix, Inc. (NFLX) May Buy Teletubbies, Care Bears, Inspector Gadget

Netflix has an opportunity with children, but it may need to lay out some money.

Netflix, Inc. ( NASDAQ:NFLX) may have its biggest opportunities among children. The market is more likely to binge watch and has a much bigger appetite for re-watching old content, as any parent will know. The company may be looking to take control of popular children's characters like the Telebubbies, Inspector Gadget and the Care Bears, according to a report from .

TV show producer DHX Media Ltd. ( TSE:DHX) owns these characters, and Bloomberg thinks that Netflix, Inc. ( NASDAQ:NFLX) may be looking to acquire the firm. The company is listed on the Toronto stock exchange, and is worth just over $350 million Canadian dollars on today's market.

Netflix looking at DHX Media

The usefulness of children as a market makes DHX Media Ltd. ( TSE:DHX) an ideal target for Netflix, Inc. ( NASDAQ:NFLX) if it wants to continue its push into original content. According to the Bloomberg piece, Sameet Kanade, a Toronto-based analyst at Jacob Securities, says that the move would be a 'no-brainer.' DHX Media Ltd. ( TSE:DHX) should fetch at least $5 CAD per share, according to Kanade.

Some of DHX Media Ltd. ( TSE:DHX)'s stable of characters are very recent additions. The company has been busy gathering intellectual property through acquisition. The firm acquired Teletubbies owner Ragdoll Worldwide Ltd. just last month, and bought Cookie Jar Entertainment Inc. last year. The second company owns the Care Bears and Inspector Gadget shows.

Netflix for children

Netflix, Inc. ( NASDAQ:NFLX) is well served by going for the children's market, and the design of the company's platform is aimed toward children in a major way. If children get their hands on Netflix, their parents are more likely to give it a try, increasing the stickiness of the service in households.

Netflix, Inc. ( NASDAQ:NFLX) is also trying its best to become a force in original content. If the company is serious about becoming a content producer, it will need to invest a huge amount of money. Buying a producer of children's content could be the best way to get into the industry.

Netflix, Inc. ( NASDAQ:NFLX) needs to continue to add content and value to its service if it wants to make them more valuable and bring in more revenue to other countries. With a lot of cash in its pocket, the company may be looking for a firm to buy. According to Bloomberg, DHX Media Ltd. ( TSE:DHX) may be top of the list.