The biggest rivals in streaming video are now playing in the same sandbox.
Amazon snapped up the rights to popular kids shows such as “SpongeBob Squarepants” and “Dora the Explorer” as part of an exclusive, multiyear deal with the cable powerhouse Viacom.
The deal — which analysts value at around $200 million — puts Amazon’s Prime Instant Video service in direct competition with Netflix for younger viewers.
While streaming video is a nice way for adults to catch up on TV shows, it is an even bigger deal for parents who look to on-demand programming to keep the little ones entertained.
Amazon swooped in just days after Netflix’s deal with Viacom expired. In April, Netflix said it would let the agreement lapse because it wanted to cherry-pick Viacom shows rather than pay for bundled programming.
Netflix crowed that it has already replaced Viacom’s content with shows from Disney, including “Handy Manny,” as part of a major partnership the two struck last year.
Netflix has also expanded its deal with Hasbro to add more children’s programming, including “My Little Pony Friendship Is Magic” and “Littlest Pet Shop.”
Amazon’s deal with Viacom covers more than just kids shows and includes exclusive and nonexclusive content from other Viacom properties, including Comedy Central and MTV.
Amazon’s streaming service is available as part of its $79-a-year Prime shipping service.
The streaming-video space is getting frothy with Amazon, Hulu and Netflix competing along with traditional pay-TV companies to tie up online rights to TV shows.
Amazon has been among the most aggressive, locking up the exclusive rights to “Downton Abbey.” It also has an agreement with CBS to air its summer miniseries “Under the Dome” just a few days after it airs on broadcast TV.
Wall Street sees the streaming arms race as a positive for Viacom and other content providers.
“You have to say all these competitors for content drives the price higher,” RBC Capital analyst David Bank told The Post. “Amazon getting bigger is good for all the content producers.”
Dan Cryan, digital media expert with consultancy firm IHS, said that the deal signals a new phase of evolution in the streaming-video business as rivals look to differentiate their services through exclusive deals and original programming.
“We’re seeing the rise of exclusivity, which is a new era for the online-streaming business, and we’re seeing a growth in the original stuff with Netflix’s ‘House of Cards’ and Amazon Studios’ pilot projects.”
“They’ve taken a leaf out of the network playbook,” Cryan added.