HBO has taken root with its announcement that it has signed up five seasons of Sesame Street, the timeless kids' show that many people grew up to, and has added it to its roster of shows.
But when it is more popularly known for complicated dramas like Game of Thrones and comedies with a certain cynicism in its humor like Silicon Valley, one has to wonder about its motivation.
The unstoppable rise of Internet-TV is the real reason. In effect, HBO is taking on Netflix and Amazon Prime Instant Video by choosing Cookie Monster to carry its name. HBO Now, which allows consumers to buy HBO without needing a cable subscription, is now in direct competition with the streaming giants.
Netflix and Amazon have long figured out that getting kids to patronize their shows unlocks a very big subscriber base. In terms of numbers, Netflix reported that 75 of its kids' shows got more than 2 million viewers. "More than a dozen" of their shows were also viewed by a cool 5 million of its total 35 million US-based subscribers.
To illustrate how such a strategy is big business, Netflix finalized a $300m per year deal for first-run rights to Disney movies. This starts next year. Last year, as well, Netflix secured 300 hours of original programs from Dreamworks.
Kids' shows are apparently very good investments since kids tend to watch and rewatch their favorite shows. This practically guarantees lots of mileage for just one program.
This latest move by HBO is a way for it to secure its future. As adults demand new high budget TV, kids are perfectly happy with their own shows that do not necessarily even have to be new. Sesame Street is actually the best good example of this.
With both the adults and kids on board, HBO can assure itself of a bright future. When these kids grow up, they will most likely watch HBO's super awesome series too.
