As part of its push to woo more kids and families, Netflix has struck a deal for animated films from Sony Pictures, including "Cloudy with a Chance of Meatballs 2" and "The Smurfs 2."
The pay channel Starz has a multiyear agreement with Sony for its movies, which includes the kids movies. However, Starz saw the kids fare as having limited value to its service and gave the green light to Sony to find another home for the content.
Starz will continue to have rights to all other Sony features through 2021.
Netflix has made no secret that it wants to be a player in the kids business. Besides acquiring lots of programming aimed at children, including movies from DreamWorks Animation, the company is working with DreamWorks on original programming for kids.
"We believe the younger demographic is an important element of [Netflix's] long term strategy as they condition future generations to use the platform as they mature," media analyst Tony Wibble of Janney Capital Markets said in a message to clients.