WASHINGTON — In a shocking move, Amazon signed a subscription-streaming contract to gain the rights of popular cartoon show “Dora the Explorer” and other Viacom children’s shows.
Reuters reports that this applies significant pressure to arch-rival Netflix, whose online subscription service is trouncing competitors. Netflix’s online streaming service has more subscribers than online website Hulu, which is bleeding money.
Netflix even resurrected a hit TV series, “Arrested Development”, to drive customers to its online platform.
How much did it cost? $200 million to secure the rights to these children’s cartoon shows. Netflix admits this could be a blow to their business, with their CEO Reed Hastings saying that it is “definitely a problem” since these shows are no longer on Netflix it could drive parents to Amazon.
Netflix has secured rights to Disney products, which may have forced Amazon’s hand with Viacom.