Kids matter. Netflix has been making sure it has its share of kid programming, from zero on through teenager to adult to assure that the whole family gains satisfaction from its subscription to their service. Shows like Arthur, Magic School Bus, Curious George and others are all meant to attract the youngest audience and their parents. And it seems HBO is following a similar strategy. It's latest move, acquiring first run content for Sesame Street, the popular pre-adolescent series that has been appearing on PBS.
Per the NY Times, "After nine months of programming exclusively on HBO, the shows also will be available free on PBS, its home for the last 45 years." This financial investment is certainly good news for Sesame Workshop. How useful it is to HBO and what other children programming it starts to acquire will demonstrate how serious they are to get into this space. But given how streaming has become more important to the future of HBO and how quickly children are embracing mobile video, it is the kind of content that HBO needs to stay competitive with Netflix.
Don't be surprised to watch Showtime and Starz make their own investments into children's programming too. They have traditionally used a follower strategy against HBO. Content is king and HBO wants to compete effectively in the mobile market against Netflix.