Netflix (NFLX) is superpowering its original content, signing an exclusive deal with Marvel for four new superhero shows. This is great news for NFLX stock investors.
Daredevil will be the first of the superheroes to show up on NFLX, coming in 2015. His appearance will be followed by series for Jessica Jones, Luke Cage and Iron Fist.
Each NFLX series will be 13 episodes or longer, culminating in the four heroes coming together in a mini-series called The Defenders. (Think The Avengers, but on TV.)
And while superheroes may seem like all fun and games, this deal is serious business for Netflix stock.
NFLX Gets Superpowers
The content deal is a huge win for NFLX. Why? Because Marvel has a track record of success that could eventually boost Netflix stock even higher.
Marvel’s Agents of S.H.I.E.L.D. TV series, for example, was one of the first new shows picked up for a full season. Marvel also has a proven track record with its superhero films. Half have earned $500 million or more in worldwide box office.
We won’t be able to tell how many people start a NFLX subscription for these series in particular. But between The Avengers and Agents of S.H.I.E.L.D., Marvel has proven the audience is plenty large. And growing audience is just what investors in Netflix stock want to see.
NFLX stock has been soaring high this year, up more than 250% year-to-date. That’s great news for everyone who bought Netflix stock in the first half of the year. But for anyone who bought NFLX in the past month, future growth was a major question.
A group of superheroes gives Netflix more content to work with. And more importantly, it ties NFLX to one of the best entertainment brands out there: Marvel, not to mention its parent, Disney (DIS).
True, with the exception of Daredevil, none of the Defenders are as recognizable as Captain America, Thor or, y’know, the big green guy who likes to smash. But NFLX original programming has a pretty solid track record. House of Cards won three Emmys. Meanwhile, Orange Is the New Black got more first-week viewers than House of Cards or the resurrected Arrested Development.
NFLX stock might not immediately take off like Iron Man. But in the long run, these shows could be the radioactive spider bite Netflix was looking for.
Adam Benjamin is an Assistant Editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities, but he already has tickets for Thor: The Dark World, which comes out tomorrow.
