Netflix Inc. has bought the home video rights to animated films from Sony Pictures Television.
The deal gives Netflix access to films such as "Cloudy with a Chance of Meatballs 2" and "The Smurfs 2", according to CNBC.
The deal was announced on Tuesday, and includes one or two films per year. Neither company offered information about financial terms.
Pay-television network Starz was the previous owner of the animated film rights, but gave Sony permission to sell them to another company after viewing the kids demographic as having limited value, The Los Angeles Times reported. Starz will still have the rights to Sony's other features through 2021.
Netflix has shown interest in the kids demographic with its recent purchases of children's programming, such as movies from Dreamworks Animation, along with a Dreamworks collaboration on original programming for youngsters.
"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," said Tony Wible, media analyst from Janney Capital Markets.
The video-streaming company has been looking to gain new subscribers with a bunch of purchases involving high-profile content, CNBC reported. Such deals include its purchase in 2012 of the exclusive rights to show movies from Walt Disney Co. starting in 2016.
The deal with Sony adds to Netflix's content costs, with the company currently having $7.1 billion in obligations for streaming content.
The video-streaming company's purchase of the film rights from Starz was suggested on Tuesday when Wible said that "Cloudy with a Chance of Meatballs 2" had appeared on Netflix, CNBC reported.
The deal between Netflix and Sony allows Starz to focus more on producing content aimed at adults. Starz is releasing six new series this year, which include "Survivor's Remorse" and "Black Sails," and is airing a second season of the original series "Da Vinci's Demons."
