For almost three decades, the names Tinky Winky, Dipsy, Laa-Laa, and Po have been synonymous with “The Teletubbies” and have captivated households around the world. However, the way kids consume content has drastically evolved in the age of streaming. In the past, television provided limited options for kids, with PBS, Disney, and Nickelodeon being the primary gatekeepers. But now, with the advent of YouTube, TikTok, and numerous streaming platforms, kids have access to a vast array of content anytime, anywhere. This shift in content consumption has significant implications not only for kids but also for streaming services themselves.
Kids represent a unique demographic for the entertainment industry. Although age-specific advertising laws restrict direct marketing to them, their viewing habits make them incredibly loyal consumers. They often gravitate towards repetitive content, which translates to prolonged engagement and increased customer retention. For streaming services, attracting and retaining subscribers is paramount, especially as competition intensifies. Having a dedicated hub for family-friendly content ensures that parents stay engaged and subscribed. Peter Csathy, the founder of advisory firm Creative Media, emphasizes the critical role of kids and family-friendly content in both acquiring new subscribers and retaining existing ones. Once kids become hooked on a show, they will not let their parents consider canceling their subscription.
Legacy media companies are striving to compete with streaming giants like Netflix in the ever-expanding streaming landscape. Initially, Wall Street was content with high subscriber growth and the promise of future profitability. However, as ad revenue from linear TV declined significantly, investors demanded immediate earnings growth. This shift in expectations forced streaming services to reassess their strategies. Unlike adult-focused content, which requires a constant stream of new releases to keep viewers engaged, kids content thrives on repetition. Young children do not mind watching the same shows or movies repeatedly, making it easier for streamers to meet their demands. A study conducted by the Parents Television and Media Council found that adult-only original entertainment on major streaming platforms outnumbers family-friendly content by a significant margin. Streamers must prioritize franchise family-friendly brands to fully embrace the potential of kids content.
Many major streaming services have dedicated sections for kids, featuring both proprietary productions and licensed content. While Hollywood remains a primary source of content, streaming services have also turned to international productions to cater to diverse audiences. Dean Koocher, the founder of Kidstream, a kid-centric streaming service, highlights the global similarity in kids’ wants and needs during their early years. Australian, British, Russian, and French productions like “Bluey,” “Peppa Pig,” “Masha and the Bear,” and “Miraculous: Tales of Lady Bug and Cat Noir” have successfully garnered a following not only in their home countries but also in the United States. Additionally, classic shows like “Barney,” “Thomas the Tank Engine,” “Madeline,” and “Wallace and Gromit” continue to captivate kids, showcasing the enduring appeal of timeless content.
As parents increasingly seek more content options for their kids, there is an opportunity for artificial intelligence (AI) to revolutionize the animation process. AI can not only expedite animation creation but also democratize entry into the animation space. AI-driven generative technologies have the potential to enable streaming services to produce new kid programming faster and at a lower cost. However, this increased speed and efficiency may come at the expense of originality and quality. Peter Csathy raises concerns about potential sacrifices in originality, banking on the hope that kids won’t notice the difference. While AI may offer new possibilities, platforms like Kidstream remain committed to prioritizing quality content over quantity to ensure the satisfaction of parents and caregivers.
With the evolving streaming landscape, Dean Koocher envisions the rise of niche channels that can perfectly cater to specific customer segments. These channels can super-serve their target audience, whether it be parents of young children, enthusiasts of European crime dramas, or fans of niche genres like horror. As the streaming industry continues to mature, the demand for specialized content will likely increase, providing more opportunities for niche streaming services to thrive.
The evolution of kids content in the age of streaming has revolutionized the entertainment industry. The availability of diverse platforms and the shift towards on-demand viewing have fundamentally changed the way kids consume content. Streaming services recognize the importance of kids and family-friendly content in acquiring and retaining subscribers. As competition intensifies, streamers must strike a balance between meeting kids’ preferences for repetitive content and providing high-quality, engaging programming. The future of kids content holds exciting possibilities, from embracing international productions to exploring the potential of AI-driven animation. As the streaming landscape continues to evolve, the industry must adapt to changing viewer habits and preferences to ensure the continued success of kids content in the digital age.
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