Online Children’s content generated $244 billion in revenue in 2014
LONDON, UK (26 November, 2015) – European broadcasters spent just under $1 billion on children’s programming in 2014, more than any other region, according to new analysis released today by IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. The new report released by IHS Technology The Business of Children’s Content examined key trends in this subset of the entertainment industry. Based on investments by more than 100 broadcasters in 33 countries, a total of $2.2 billion was spent on children’s programming last year.
Huge Increase in YouTube & On Demand Usage – the Next Wave
The increasing availability of fast broadband services and the adoption of connected devices like tablet computers and smartphones has driven rapid developments in the exploitation of children’s content online.
IHS Technology estimates that online children’s content generated $243.8 million in revenues in 2014 from advertising, transactions and subscription.
“The two major streaming services, Amazon Instant Video and Netflix, have made a strong play for the children’s market, licensing content and commissioning original productions,” said Tim Westcott, senior analyst at IHS Technology. “But, YouTube is a major destination for children streaming both official and unofficially uploaded content and the platform is growing in importance.”
The ability to reach children on personalised, Internet-connected devices, as well as the global reach of app stores, means that services can build worldwide reach very quickly. This has led to a flurry of Subscription on Demand (SVoD) launches around the world. IHS Technology counted seven launches in 2014 and another six in the first half of 2015 alone.
Shift in Major Players
“Our first report on children’s TV was published in 1999 and at the time, there was no question that Walt Disney Company was the leading power,” Westcott said. “Disney is still the reference point for children’s content companies, but Nickelodeon, owned by Viacom, and Turner Broadcasting’s Cartoon Network, are competing globally and other players like the BBC are heavily committed to the genre.”
This is a highly stratified business where there are a handful of giant players and a multitude of small production companies, the report says. The major newcomers are toy companies like Hasbro and Mattel and, of course Google, which launched its YouTube Kids app in the US this year.
“Building scale is still very challenging, and IHS Technology has seen a number of children’s content companies failed to stay the course since 1999,” Westcott said.