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"As anyone with a young child knows, a storybook or cartoon is the ultimate in \"long-tail\"\u00A0media consumption: The 53rd rereading or re-watching is cherished just as much as the first time. And that\u2019s good news for Netflix, according to a new report from Goldman Sachs.\nThe streaming-video giant has invested heavily in content for children at a time when kids are spending more time on mobile devices. Right now, only 3% of Netflix viewers are children, Goldman analyst Heath Terry wrote, \"which leads us to believe that (1) the kids opportunity is large, and (2) Netflix is under-penetrated.\" He upgraded the stock to buy on June 30.\nAnother positive: Kids have no tolerance for scheduled TV, believing this should be an on-demand world, all the time \u2014 Goldman knows kids are like that \u2014 and Netflix follows no rigid programming schedule.\nSEE ALSO:\u00A0Mara Brock Akil and the Audience TV Forgot\nPerhaps the biggest boon for Netflix is the growing ranks of toddlers and children with access to tablets and smartphones. As the Goldman team notes:\n\"Kids aged 0 to 8 in the U.S. are increasingly gaining access to mobile devices, as 75% of kids now have access \u2026 compared to 52% just two years ago, according to Common Sense Media. Interestingly, 7% of kids already have their own tablets, and to put this into perspective, only 8% of adults had their own tablets just two years ago.\"\nMoreover, Goldman writes, mobile is the only viewing platform that is gaining daily usage time among children. And multiple streams for homes with more than one child further opens the revenue gates at Netflix, which announced a\u00A0modest price increase\u00A0in April for new subscribers.\nThe Goldman analysts don\u2019t see children as the only catalyst for Netflix\u2019s profit growth. The streaming service is\u00A0expanding internationally\u00A0into six more European nations this year, with two to four more expected in 2015. The company\u2019s total potential international market is more than 200 million people. Applying a market penetration rate of one-third \u2014 based on HBO's experience in amassing 104 million subscribers abroad \u2014 Goldman estimates that Netflix could have more than 62 million international subscribers by 2017, compared to just 13 million now. \"At $8.99, Netflix could increasingly come to be viewed as a high value add-on to a wireless data plan for any number of devices,\" the Goldman analysts wrote.\nSEE ALSO:\u00A0Are Original Shows Driving Netflix\u2019s Viewership?\nGoldman thinks Netflix shares have a 34% return potential, with a target price of $590. Netflix shares rose 6% in morning trading, to $467, bolstering a 27% advance this year.\nSEE ALSO:\u00A0Netflix Signs Comedian Chelsea Handler, Expanding Battlefront With HBO"^^<http://www.w3.org/2001/XMLSchema#string>
<http://mashable.com/2014/07/06/netflix-childrens-programming/>