The entire content production and distribution industry is experiencing a huge disruption era. The kids' content business is particularly affected by budget constraints, IP greenlighting complications, and shifting audience habits. For that reason, Señal News spoke with different experts in the kids' arena to understand the whole picture of this situation.
In today's market, there's often a cautious approach toward new ideas and emerging IPs. "Buyers tend to favor established brands with strong recognition and a track record of success. However, innovation remains as important as ever. Creating fresh IPs that deliver captivating stories and memorable characters and connect deeply with audiences is vital. A distinctive USP is critical for any IP to stand out and achieve long-term success. In recent years, we have carefully analyzed the market, securing distribution deals for exciting upcoming TV shows, including those based on popular comics and novels that have already succeeded in various regions," Dorian Buehr, Head of Global Distribution at Studio 100 International, explained.
"The global content production and distribution business is tougher than ever, well more than I've ever experienced in 30 years, somewhat like the planet's environmental crises. But as we all know, it helps us reinvent ourselves and find solutions. Like the planet issue, it shows that we should produce less but better content, focusing on quality over quantity. It is our duty to stay optimistic and help kids understand their role in this situation," Emmanuèle Pétry, Producer & Head of International at Dandelooo, described.
Another burden in the kids' arena is that the preschool market is saturated with offerings, complicating the landscape with stiff competition. "In addition, budgets are limited, and the fees paid for content often do not cover the investment through traditional channels like broadcasting. That forces us to explore new sources of income, such as the digital space, advertising, FAST channels, and OTT platforms. The market is fragmented, with many active players, which increases both competition and opportunities for those who can adapt and find new business models. Despite the competitive and challenging nature of the preschool segment, there are significant opportunities for innovation and standing out with high-quality content. Our challenge is differentiating ourselves through relevant content and effective distribution strategies," Miguel Aldasoro, International Sales and Copro Director at Ánima Kitchent, stated.
"The global kids' content production and distribution landscape has evolved significantly recently. We definitely have more choices now in terms of media, driven by the rise of digital and streaming services. That has led to an expansion in genres now as the popularity of anime has become more prominent worldwide. The availability of different types of content has given kids more control over their viewing experience," Maiko Sumida, Head of Animation Sales & Development at TV Asahi, said.
IP GREENLIGHT
Today, the kids’ content business finds a very difficult barrier to surpass: buyers are not so much focused on brand new content but rather on properties that have already proven to be a success, have a strong connection with the audience, a track record of performance, and clear brand recognition. “This is crucial, as the risk of betting on unproven content is higher in today’s competitive environment. In this regard, our brands, particularly ‘Cleo and Cuquín’ have a significant advantage. Cleo and Cuquín is not only a well-known series but it has also
achieved a strong presence in the digital space, specifically on YouTube. The success we’ve had on this platform is a fundamental asset. Content buyers, whether for television or streaming platforms, value programs that have clear data and performance metrics to support their potential,” Aldasoro said.
“Strong relatable characters which give children empowerment, meaningful stories with take-aways for the viewers, a comforting environment to calm anxiety are some of the essential features. These are only part of the puzzle of course. We need reliable co-producers because it is too risky to greenlight shows with only one commissioner. And you need to accept that not all projects get greenlit. It’s part of the game to develop some projects with all your energy and heart and learn to let go when it doesn’t happen,” Pétry noted.
“As the kids’ population in some parts of the world, including Japan, has been shrinking, it is important to consider the possibility of global distribution as well as the 360-business model upfront when we greenlight projects. Quality storytelling, engaging narratives, and diverse characters are essential and ancillary revenue streams are now equally important to draw worldwide audiences,” Sumida said.
“When selecting source material, we prioritize stories with strong narratives and engaging characters that children can easily connect with. It's important that the content not only resonates with today’s young audiences but also has the potential to grow into a long-lasting and impactful brand. Most recently, Studio 100 International has formed a strategic partnership with Gaumont and Gingersnap Productions to co-develop a thrilling new series, ‘Jungle Book: Cub Club Adventures’ (working title), inspired by Rudyard Kipling’s legendary
‘The Jungle Book.’ This series is targeted at children aged 4-7 and their families,” Buehr stated.
LINEAR vs STREAMING
As the kids' business evolves, a huge factor to consider for its growth path is the balance between linear and digital projects and its subsequential global distribution. "Although streaming and digital businesses continue to grow, it remains important to consider and combine them with traditional linear businesses as they still play an essential role in the content ecosystem. Especially in the kids' space, it is still necessary to have a linear partner in terms of funding and greenlighting projects," Sumida pointed out.
"Alongside linear television and its ratings, digital platforms are essential for tracking and measuring the success of our IPs. Streamers are becoming increasingly important in our distribution strategy, and we offer a diverse range of programming to meet the needs of various clients, with some shows particularly well-suited for streaming audiences. Additionally, we maintain a robust presence on YouTube, regularly uploading content and staying responsive to evolving consumer trends. Our classic series continues to perform strongly, retaining their popularity on the platform," Buehr highlighted.
"Our strategy often begins by prioritizing content for streaming platforms, as they allow for more immediate global distribution and continuous exposure without relying on fixed schedules. However, we also recognize that linear television plays a crucial role, especially in markets with strong penetration or in certain audience segments that still prefer this format. That's why we produce content that can adapt to both environments, allowing programs initially created for streaming to be adjusted for linear TV and vice versa. This flexible approach maximizes the value of our content and allows us to leverage the best of both worlds," Aldasoro noted.
"At Dandelooo, we do not balance anything! As we've done for the past 14 years, we continue to build our financing from French broadcasters. We are extremely thankful to France Televisions and Canal+ Kids for supporting our projects and being part of our growth. We have never had a streamer commission one of our programs (although it was really close!) but are hopeful that it will eventually happen when we get over these hard times," Buehr explained.