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Netflix (NFLX) Rolls Out Kids-Focused Mystery Box Feature

Zacks Equity Research
·3-min read

Netflix NFLX recently launched a feature called Netflix Kids Mystery Box to help parents tap new content suggestions for their children. Similar to the Play Something feature for adult subscribers, the Mystery Box is a shuffle option, which offers a new title that young viewers haven't seen yet.

The new mystery box feature could help kids find new age-appropriate content among the vast number of kids-focused titles on Netflix. To try the Mystery Box, users can select a child's profile on Netflix and then go to the Favorite Row at the top of the home page and browse over Mystery Box to see new title suggestions.

Per the company, Mystery Box is aimed at bringing an engaging and tailored experience that connects kids to stories that shape their world.

Netflix, Inc. Price and Consensus

Netflix, Inc. Price and Consensus
Netflix, Inc. Price and Consensus

Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote

Netflix Builds Focus on Kids Profile

Of late, Netflix has been investing in kids programming through profile redesign, the Top 10 row for age-restricted profiles, and even a test of a TikTok-style feed for kids. Last year, the streaming giant acquired some high-profile IPs, including the Roald Dahl Story Company.

The Zacks Rank #3 (Hold) company also introduced bi-weekly kids digest emails, which were sent to email account holders with at least one kids account set up. These emails included recommendations based on the child's favorite shows and movies, printable coloring sheets and activities inspired by the child's favorite character, theme songs or themes showcasing the types of shows kids enjoy the most, and tips on using kids features on Netflix. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

However, in the children’s programming domain, Netflix faces significant competition from rivals like Disney DIS owned Disney+, Hulu, Warner Bros. Discovery WBD owned HBOMax and Apple’s AAPL Apple TV+.

While Disney+ is planning on a $32 billion content spend for fiscal 2022, it has been less focused on children’s movies and tv shows.

According to data firm Ampere Analysis, 70% of the content available on Disney+ was aimed at children but it’s slowly reducing that.  In 2021, children’s content accounted for 64% of Disney+ programming and dipped to 63% in 2022. The number is expected to drop further.

Puppy Face, The Snoopy Show, Wolfwalkers, Stillwater, Ghostwriter and El Deafo are a few popular shows on Apple TV+ for children. HBO Max offers animated series like Steven Universe, Apple & Onion, The Amazing World of Gumball and The Fungies! for its young audience.

Expanding Audio Description, Subtitling Accessibility Features

In honor of Global Accessibility Awareness Day, Netflix announced an expansion of multiple accessibility features as well as the service’s first-ever collection of films and series focused on telling stories featuring actors and characters living with disabilities.

The update is aimed at making its content more accessible to users living with disabilities. Starting this month, the service will be expanding its audio descriptions (AD) and subtitles for the deaf and hard of hearing (SDH), which will also be made available on content in more than 20 languages, including Spanish, Portuguese, Korean, and French.

The streaming giant also announced that it will be introducing badges on the web and iOS for customers to more easily determine if a series or movie includes AD and SDH support.

Additionally, Netflix will launch the Celebrating Disability with Dimension collection of over 50 shows and films, including Love on the Spectrum, Atypical, Hannah Gadsby: Douglas and Deaf U, which feature characters or stories about people living with disabilities.


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