Skip to main content

Goldman Sachs figured out what parents have known for years: Netflix’s future lies with kids

Oops! We couldn't load this video player
Goldman Sachs has released data that confirms what thousands of parents already know: Netflix’s future lies in the hands of children. According to a report from Bloomberg, Netflix is set to see some pretty intense profit growth over the next few years as a result of the various moves its making nowsnatching up licensing agreements for animated content left and right, expanding to Australia and six European countries, and tacking on an extra dollar to its prized streaming service for new subscribers. But it seems that children’s content might currently be the service’s most underutilized sector – because Netflix has quietly set it itself up to become the central hub for every child’s streaming needs, it will probably equal big bucks if and when the niche market explodes.

Goldman analyst Heath Terry notes in the report that only 3 percent of Netflix’s user base consists of children. Even a 5 or 10-percent upward swing could yield massive profits.

Recommended Videos

Kids have more access to mobile devices and the Internet than ever before (even just a couple years ago) and, as the team behind Goldman’s report notes, this phenomenon is opening up online video-streaming to more and more children: “Kids aged 0-8 in the U.S. are increasingly gaining access to mobile devices, as 75 percent of kids now have access … compared to 52 percent just two years ago, according to Common Sense Media. Interestingly, 7 percent of kids already have their own tablets, and to put this into perspective, only 8 percent of adults had their own tablets just two years ago.”

At the center of Goldman’s report is the firm’s upgrading of Netflix stock from neutral to buy – Terry raised the stock’s price target from to $590 from $380, marking a 34-percent premium over the stock’s $440 close on Monday, according to coverage by Forbes.

[image: greenland/Shutterstock.com]

Alex Tretbar
Former Digital Trends Contributor
Alex Tretbar, audio/video intern, is a writer, editor, musician, gamer and sci-fi nerd raised on EverQuest and Magic: The…
JBL’s 100W portable Bluetooth has a nice discount today
The JBL PartyBox Encore 2.

The Super Bowl is only a few days away now, which means we can expect to see plenty of last-minute sales on TVs, soundbars, and other home theater gear. But if you want to treat your Super Bowl party guests to an evening of immersive audio they’ll never forget, you’ll want to have a solid Bluetooth speaker lying around. Fortunately, we came across a great sale while vetting through Bluetooth speaker deals:

For a limited time, when you purchase the JBL Partybox Encore Essential through Amazon, Best Buy, Walmart, and a handful of other retailers, you’ll only pay $250. The full MSRP on this model is $300.

Read more
This 85-inch Samsung QLED TV is $2,250 off — perfect for Super Bowl LIX
The Samsung 55-inch QNX1D Neo QLED on a white background.

If you've got friends and family coming over to watch Super Bowl LIX, you've still got time to purchase an upgrade for your home theater setup. You can make a big splash with the 85-inch Samsung QNX1D Neo QLED 4K TV, which is available with an attention-catching $2,250 discount from Samsung's TV deals that slashes its price from $4,000 all the way down to $1,750. You won't always get the chance to buy this display for less than half-price, so what are you waiting for? Proceed with the transaction right now to make sure that you get it in time for the big game.

Why you should buy the 85-inch Samsung QNX1D Neo QLED 4K TV
The Samsung QNX1D Neo QLED 4K TV, which is also known as the Samsung QN85D Neo QLED 4K TV, offers bright and accurate colors with its QLED TV technology, sharp details with 4K Ultra HD resolution on its 85-inch screen, smooth action with Motion Xcelerator Turbo 120Hz, and 3D surround sound with Dolby Atmos. With these features, it will be like you're watching Super Bowl LIX at Caesars Superdome in New Orleans yourself. Experience every rush, pass, and touchdown as if you're in the stands with the Samsung QNX1D Neo QLED 4K TV.

Read more
This waterproof Bluetooth speaker is on sale for just $60
The Treblab HD77 Portable Bluetooth Speaker on a boat.

You can do a lot of things with a Bluetooth speaker, especially when the product in question is weather-resistant. Having a strong IP rating guarantees you’ll be able to listen to your favorite tunes and podcasts through your new speaker, even when it’s raining outside. Waterproof speakers can even withstand an accidental dunk in the pool! To that end, we thought we’d share this great offer we came across while vetting through Bluetooth speaker deals:

For a limited time, when you purchase the Treblab HD77 Portable Bluetooth Speaker through Amazon or Walmart, you’ll only wind up paying $60. The full MSRP on this model is $70.

Read more