As someone who grew up watching the VHS tapes of “X Files” that my parents rented from the local video store, I can truly appreciate the transformative impact that technology has had on our entertainment experiences, especially when it comes to kids’ content. Olivia Deane’s insights into the evolution of children’s TV over the past two decades have been nothing short of enlightening.
Back in 2007, I had a transformative moment when I caught up with ‘The X Files’ on YouTube. This experience has significantly shaped my perspective as a consumer, and it continues to influence me today.” – Olivia Deane, Research Manager at Ampere Analysis, sharing insights during the opening session of MipJunior on October 18th, discussing the evolution of audiences over the last two decades, structural adjustments, and innovative business models in children’s content.
In the past two decades, producers of children’s content have experienced a thrilling up-and-down ride, with on-demand and peak/post-peak TV marking significant shifts, as discussed by Deane in her talk ‘Plotting a New Era of Children’s Television & Entertainment’, delivered at the Grand Theatre of the JW Marriott Cannes.
In the golden era spanning 2004 to 2014, often referred to as “the first age of on-demand,” I found myself in a fascinating time when kids had unprecedented control over media accessibility. Unlike traditional households without multiple TV-connected devices, it was quite common for families during this period to have more than one such device at their disposal, providing endless entertainment options.
Over the past few years, often referred to as ‘the OTT golden years and Peak TV,’ Dean noted that “streaming companies significantly increased their collection of children’s content by investing funds into the creation market for such programs.” This move is aimed at meeting the growing demand in this area.
In the year 2021, it was evident that children’s titles took precedence among commissioners compared to other genres. This can be seen in the data, where kids and family content ranked third in the number of titles acquired by streamers behind documentaries and reality shows (with 18,000, 25,000, and 23,000 titles respectively). Furthermore, when it comes to Video on Demand (VOD) commissions worldwide, children’s content fell into the fifth position with 294 commissions, following documentaries (797), reality shows (639), comedy (509), and crime/thriller series (450).
The boom in kids content commissioning that nearly doubled between 2020 to 2022 (from 293 titles the first six months of 2020 to 448 the same period 2022) eventually led to a saturation on the market. “In the second quarter of 2024, there were 43 years-worth of children’s titles available to watch across streaming and broadcast platforms…not accounting for sleep!” Dean underlined.
Reflecting on the latest insights, even though there was an expansion of streamers’ user base in 2024 following the rollout of ad tiers, the Over-The-Top (OTT) market’s growth in Revenue Generating Units (RGUs), which had been thriving since 2015, is about to hit a saturation point over the next few years. Consequently, the net adds by 2026 are expected to be lower than they were a decade prior, as per Ampere’s forecast.
As a result of this, commissions experienced an uncommon decline that Deane referred to, which saw the number of titles ordered increase from 5,079 to 8,090 between 2020-2021 (a rise of 59%), and 9,843 in 2022 (an increase of 22% yearly). However, the figures dropped by 12% to 8,706 in 2023, and then further decreased by 5% to 8,291 in 2024.
During the first half of 2024, children’s shows, family series, and reality programs experienced a significant drop (13%) compared to the same timeframe in the previous year, as per Ampere’s report. On the flip side, drama genres saw a slight increase of 3%, while documentaries grew by 4% within that period.
In the post-peak TV era, Deane noted that modern kids prefer to watch content they choose, whenever they desire. Referencing Netflix’s consumption pattern, the analyst added that during the latter half of 2023, children and family programs ranked as the second most preferred genre, trailing only behind crime & thriller. This was followed closely by comedy and romance.
Deane noted that children significantly contribute to the pattern of subscriptions, even though they may not be the primary factor fueling growth in streaming services like sports do. However, kids can help minimize the rate at which subscribers cancel their service.
Despite not investing heavily in new productions, she noted that streamers are actually spending significantly on previously obtained children’s content. She referenced a decrease of 42% in commissions from Netflix and 58% from Apple during the first half of 2023-2024, but also mentioned an uptick in acquisitions – a 7% increase for Netflix and a 16% rise for Apple, within the same timeframe.
Indie producers receive a positive outlook because, despite the children’s content market being quite crowded, public broadcasters are consistently pouring substantial investments. However, their primary focus remains on established popular content, as evidenced by the steady increase in TV renewals from pubcasters, rising from 38% in 2020 to 59% in 2024.
In a recent statement, Deane pointed out that there are numerous chances for creators to secure funding for their projects via unconventional means, as demonstrated by the triumphs of French studios like Ankama who utilized crowdfunding platforms to revive their IP “Wakfu” and internet sensations such as “Lukas the Spider” on YouTube. He emphasized that creators who can successfully collaborate with well-known brands or intellectual properties will have a significant edge in a highly competitive market where acquisitions are frequent.
MipJunior runs Oct. 18-20 in Cannes.
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2024-10-18 22:48