Streaming video giant Netflix, Inc. (NFLX) reached an agreement to acquire StoryBots, a kids media brand best known for creating the "Ask The StoryBots" animated show.

What Happened

"StoryBots", dubbed the "next generation of Sesame Street" is already included in Netflix's library of kids content. By acquiring the company behind the cartoon, Netflix is signaling it wants to "create an educational franchise that's global," StoryBots CEO Gregg Spiridiellis told CNBC. "That's what they see StoryBots as."

Netflix's acquisition of StoryBots marks its second ever purchase of content after buying MillarWorld in 2017.

"Ask The StoryBots" has been seen more than 1 billion times across YouTube, the company's own website and apps, the owner told CNBC.

The price tag Netflix paid to acquire StoryBots is not known.

Why It's Important

Netflix could be looking at the acquisition to better defend itself against upcoming competition from Walt Disney Co (DIS) who is set to launch its own streaming video platform, according to Bloomberg. The kid-friendly segment of streaming video will prove to be a key battleground

Spiridiellis and his brother Evan who helped co-found the company will both work at Netflix in its animation department, CNBC said. The two will focus exclusively on expanding StoryBots which has already aired three seasons.

Netflix's stock traded around $360.78 per share Thursday afternoon.