2023: The Year in Kids

The pain points that have emerged in the kids’ media business date back to 2022, but 2023 is arguably when everyone in the ecosystem started to feel the pinch. You can blame TikTok/YouTube/Roblox, the ad crunch or the shifts at the streamers—or perhaps it was just natural that the post-Covid bubble would burst—but children’s programming executives are starting this year with a heightened sense of anxiety. Commissions are down, budgets are restricted, and there’s an awful lot of high-quality content out there competing with rudimentary fare made in the creator economy. How is an IP owner supposed to cope?

Evan Shapiro, who tracks media consumption trends, had some thoughts on this conundrum at our TV Kids Summer Festival in June. “The adoption of technology and new platforms truly accelerated to a point where change is now a constant state,” Shapiro said. “Paying attention to change for the artist, for the publisher, for the producer, is now more important than ever. Especially with Generation A, who is now basically woven change into their DNA, into their very heart rhythm. Disruption is now the operating system of the ecosystem. And so you do have to wake up stupid every day and learn something new about something new every day and not think that just because this is how we behaved, this is how the next generations are going to behave. Generation A will be extremely different than every generation that came before it, more so than previous generations because of what they just went through in their most formative years, but also because they are so technologically savvy and so native in what tech is. They factor it into who they are and what they do. Change is now a constant state, and you’re going to have to be OK with that. And if you’re not OK with it, that’s OK. But don’t be in the entertainment or media business.”

The changes that marked 2023 included a radical slump in commissioning activity, as highlighted in stark data from Ampere Analysis presented at MIP Junior. Global commissions of kids’ shows were down 48 percent since February 2022. Overall, kids’ titles commissions fell 21 percent—almost double the 11 percent decline in all genres. The cutbacks have been most significant at the U.S. SVOD and pay-TV services. U.S. public-service broadcast commissions were fairly stable, but pay-TV commissions slumped 53 percent and SVOD 33 percent. In Western Europe, PSB commissioning has taken a hit, falling by 19 percent, while the SVODs and pay TV were fairly stable. The pressures on the market are causing commissioners to rely more on known IP, which accounted for more than 50 percent of new commissions in the U.S. and the big European territories.

We saw that theme in the commissioning activity throughout 2023, from book and graphic novel adaptations in the works (among them Gaston Gets It!, Iyanu, Adventures on Trains, Badjelly the Witch, Kids Can Press, Eddie’s Lil’ Homies and Super Happy Magic Forest); to reboots (including the impending return of Barney and Miffy) and franchise extensions like Pokémon Concierge, The Thundermans Return and Disney Junior’s Ariel. Prime Video picked up three new animated Batman projects from Warner Bros. Animation. Gaming is also proving to be fodder for new TV brands, with adaptations in the works of IPs like Piñata Smashlings. Apple TV+ ordered a new animated series from DreamWorks Animation and Dentsu based on Medicom Toy’s collectible bear-shaped figures, while Netflix’s upcoming lineup includes Hot Wheels Let’s Race from Mattel Television. Crayola unveiled Crayola Studios, a new division dedicated to creating content for kids and families.

It’s not impossible to launch a new brand, though, and IP owners should look to YouTube and gaming platforms to do that, Shapiro advised delegates at the TV Kids Summer Festival. “Get data in, A/B test, understand what works, understand what doesn’t. More importantly, establish the IP and the relationship and the cult around the intellectual property on these other platforms before you start to try to extract the value from the gatekeeper economy. If you walk in the door with an existing piece of intellectual property that has an engaged audience or community already on your side, you’re going to get so much more value, and you’re going to offer more value.”

The creator economy continues to redefine the kids’ landscape, from the ubiquity of Moonbug Entertainment’s CoComelon to the ever-expanding lineup of creators at pocket.watch—Ryan even has his own SVOD platform now, along with a FAST channel.

FAST emerged as a critical platform for the kids’ media business last year, as it did in virtually every other sector. Some key single IPs expanded into FAST, including True and the Rainbow Kingdom and Rabbids. 9 Story Media Group unveiled plans for its first branded FAST channel through a partnership with Cineverse. Channels and platforms also looked at FAST as a way to expand their reach. Common Sense Networks, the parent company of Sensical, debuted three channels: Sensical Jr., Sensical Makers and Sensical Gaming. Narrative Entertainment launched the POP and Tiny Pop FAST channels on Samsung+ and Netgem TV.

As for “traditional” linear channels, it was a year marked by some high-profile rebrandings (TELETOON became Cartoon Network in Canada, 10 Shake became Nickelodeon in Australia, Boomerang became Cartoonito in Southeast Asia and EMEA) and closures, with ITV pulling the plug on CITV in place for a kids’ hub on ITVX.

In their quest to reach kids wherever they are, IP owners also emphasized audio experiences last year. Banijay Kids & Family and digital publishing company Bookwire teamed up to launch a slate of audiobooks. Boat Rocker partnered with tonies to release Love Monster and Dino Ranch audio experiences. Australia’s ABC listen lined up an exclusive companion podcast for the hit show Bluey. Hasbro signed a deal with Audible to develop and produce the first-ever Peppa Pig podcast content. Kenn Viselman’s itsy bitsy Entertainment teamed with Meteo Expert founder Luigi Latini for the MeteoHeroes’ Adventures podcast series.

And live experiences, naturally, remained paramount. Apple TV+ and Sinking Ship Entertainment teamed for Jane’s Endangered Animal Experience, a museum exhibit based on their Jane Goodall-inspired series Jane. DreamWorks Animation unveiled a touring fan experience for Gabby’s Dollhouse. Bluey’s Big Play The Stage Show expanded its reach. WildBrain CPLG launched a new location-based entertainment business to drive opportunities for WildBrain’s franchise and partner brands, with an initial focus on the Asia-Pacific region. Hasbro City, a Hasbro-themed family entertainment center, opened in Mexico. The Mattel Adventure Park, an entertainment destination featuring attractions inspired by the toy company’s portfolio of brands, is set to open in Arizona in 2024. (Speaking of the toy giants, in a first, Mattel and Hasbro entered into multiyear licensing agreements to create co-branded toys and games last year. And a post-eOne Hasbro began to take shape before that deal closed at year-end, including Olivier Dumont taking on leadership at the new Hasbro Entertainment unit.)

M&A activity continued in the kids’ sector throughout the year. Sega Europe offered to buy Angry Birds owner Rovio for €706 million. LEONINE Studios aligned with Toon2Tango founders Hans Ulrich Stoef and Jo Daris in a new animation venture. WildBrain signed an agreement to acquire House of Cool, which specializes in preproduction capabilities for animation. GO-N Productions became part of Federation Studios. Studio 100 Media acquired a stake in 3Doubles Producciones. Nelvana sold the animation software company Toon Boom Animation to Integrated Media Company. DeAPlaneta Entertainment acquired the catalog of BRB Internacional and MetaGuardians, a collection of metaverse superheroes. Squirrel Media bought a majority interest in Mondo TV Studios. TOHO International made a multimillion-dollar investment to acquire a 50 percent stake in select content and consumer products from Frederator Network.

Last year also saw some key developments in the funding landscape. The Welsh government unveiled a new funding scheme to bolster the availability of bilingual content for young audiences, and the U.K. government unveiled a new tax relief program to boost the production of animated films. TV Kids last year released the Animation Funding: Tax Rebates & Grants Report, which includes everything you need to know about tax incentives and government funding programs that apply to animation, all in one place.