{"id":21546,"date":"2021-12-10T08:00:53","date_gmt":"2021-12-10T13:00:53","guid":{"rendered":"https:\/\/dev2.worldscreen.com\/tvkids\/worldscreen.com\/"},"modified":"2021-12-13T11:43:22","modified_gmt":"2021-12-13T16:43:22","slug":"free-for-all-1021","status":"publish","type":"post","link":"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/","title":{"rendered":"Free for All"},"content":{"rendered":"

Mansha Daswani checks in with a range of distributors and platforms about the booming kids\u2019 AVOD opportunity.<\/em><\/p>\n

\"\"<\/a>This summer, Sensical, a new AVOD streaming platform, launched in the U.S. with an array of licensed content from some of the biggest names in the business, including Mattel, WildBrain, ZDF Enterprises, Zodiak Kids, Cyber Group Studios and CAKE. It is the latest entrant in a market that was growing well before Covid-19 hit, but that kicked into high gear as distraught parents looked for new ways to entertain their kids amid an abundance of home time.<\/p>\n

WildBrain Spark\u2014which runs a network of more than 800 channels across YouTube and other major platforms\u2014commissioned a study earlier this year on the \u201cstreaming generation\u201d and found that AVOD is holding strong when it comes to viewing choices. YouTube and YouTube Kids ranked second among kids\u2019 most-watched streaming services (66 percent), just behind Netflix at 69 percent. In addition, approximately one quarter of parents say it\u2019s not very, or not at all likely, they\u2019ll be watching linear TV services in the next 12 months, while around seven in ten parents are expecting time spent watching both SVOD and AVOD services in the next 12 months to remain the same or increase.<\/p>\n

WildBrain Spark \u201cis the most rapidly growing part of the company, frankly outpacing the amount of on-demand viewing across all of AVOD,\u201d Eric Ellenbogen, CEO and vice chair of parent company WildBrain, told delegates at the TV Kids Festival.<\/p>\n

Granted, the money that distributors can make from selling content to AVOD services is still a fraction of the fees they\u2019d secure from their traditional broadcast platforms or the SVOD services, but it is emerging as a key revenue contributor.<\/p>\n

Among the companies faring particularly well in the AVOD space is pocket.watch, whose Ryan\u2019s World<\/em> brand is huge on YouTube and a slew of other platforms. \u201cWe\u2019re the leading company transforming kid YouTube stars into global franchises with premium original content, global distribution partnerships and massive consumer-products business, made possible through pocket.watch\u2019s unique positioning in the industry,\u201d says Chris M. Williams, founder and CEO. \u201cDemand for kids\u2019 and family content has accelerated over this past year, and we\u2019ve met that demand in a big way, supplying our premium and long-tail content to more than 41 platforms in 80-plus territories to deliver Generation Alpha even more of what they love.\u201d<\/p>\n

INCREMENTAL GAINS<\/strong>
\n\u201cAVOD has become a significant revenue stream over the last ten years,\u201d says Robin Gladman, senior distribution and acquisitions manager at Aardman. \u201cThere was a market-wide blip early last year with drops in ad rates across the kids\u2019 content category, but we have recovered very well.\u201d<\/p>\n

\u201cAVOD is starting to be a significant revenue source for us and is certainly an area we are focusing on and expect to grow exponentially,\u201d adds Kate Sanagan, head of sales and distribution at Sinking Ship Entertainment.<\/p>\n

It\u2019s a similar situation for Jetpack Distribution, according to CEO Dominic Gardiner. \u201cAVOD for us has been growing quite dramatically over the last two to three years. One might argue we\u2019ve been a little slow to get into the game. We\u2019re taking a much more proactive approach now. We plan on it being a much bigger piece. We\u2019re getting much more involved in YouTube than we were previously. We foresee growth in the ad revenues, and more platforms will spring up. We\u2019ll see growth in other languages [outside of English]. It\u2019s not the central part of our business, because the premium TV networks, if you will, will still generate the most [revenues], but as shows get older and our library gets bigger, we can exploit the library better. Those revenues will be important, no doubt.\u201d<\/p>\n

The value of AVOD goes well beyond delivering incremental revenues for library titles\u2014these free platforms are critical when building awareness for new and returning brands.<\/p>\n

\u201cIt\u2019s exciting to see our AVOD efforts become a promotional tool,\u201d says Sanagan. \u201cOur own Dino Kids YouTube channel, for example, has more than 750 million views and 667,000 subscribers. It has become a massive tool for us in our brand extensions of Dino Dana<\/em>, and we have integrated it into our marketing, consumer-product and publishing strategies.\u201d<\/p>\n

\u201cYou cannot ignore the vast audiences using AVOD platforms,\u201d agrees Aardman\u2019s Gladman. \u201cIt\u2019s a great opportunity for you to build awareness and drive deeper engagement around an IP.\u201d<\/p>\n

WINDOW OPTIMIZATION<\/strong>
\nAll of that means some ingenious windowing strategies and making well-thought-out decisions about where you want your brand to be featured\u2014and how much money you\u2019ll earn from that opportunity.<\/p>\n

\u201cParticularly with new platforms, you\u2019re never quite sure what their performance is going to be,\u201d Jetpack\u2019s Gardiner explains. \u201cAs much promise and hope that any new platform has, what they\u2019re actually going to deliver in terms of reach, you\u2019re never guaranteed. And what they\u2019re going to deliver in terms of revenue, you never know until the reports start coming in. We always like to say, let\u2019s get on there first, let\u2019s make sure we\u2019re not committing forever, let\u2019s make sure that if things don\u2019t go the way we hope that we can get out of these deals as well. We spend quite a bit of time negotiating that just in case. Being able to be flexible is helpful for both parties. But, of course, there\u2019s a minimum amount of time they need. This world has always been non-exclusive, so people are not asking for your best show; they\u2019re not asking for your best show forever. But what you want from them is some commitment. How easy is it going to be for your content to be discovered? We look at how complicated it is to work with them if they are in multiple territories. And because we\u2019re generally talking about deals that are low-ish in value, complication is the killer. If you have to spend a lot of time and effort once you\u2019ve delivered [the content], you\u2019ve got to make sure you\u2019re still profitable. We take all of that into consideration.\u201d<\/p>\n

\u201cWe look at each series and try to figure out its unique path to viewers,\u201d Sinking Ship\u2019s Sanagan says. \u201cSome series will sit almost exclusively on one platform, either on SVOD or AVOD, and other series will be seen on public and private linear channels, on SVOD and AVOD as well as TVOD. Odd Squad<\/em> is a good example of this broader approach, with four or five platforms in some territories. We always consider how we can best get the most eyeballs on a series and have also lately put more marketing efforts behind TVOD to help promote shows.\u201d<\/p>\n

SEEING THE MONEY<\/strong>
\n\u201cThere are new models as more AVOD players enter the market,\u201d Aardman\u2019s Gladman adds. \u201cWe work in a variety of ways with these new platforms, including requesting minimum guarantees when we feel that is appropriate.\u201d<\/p>\n

Sinking Ship, too, is looking at minimum guarantees from AVOD players, \u201cand sometimes a hybrid of license fee and rev share,\u201d Sanagan says.<\/p>\n

\u201cIt is always nice to have cash upfront or an MG,\u201d says Jetpack\u2019s Gardiner. \u201cIt\u2019s a preference, but we appreciate that a lot of these new platforms are taking a lot of risk in their investment in technology and they are often growing audiences from zero. It\u2019s important for us as content providers to be good partners and be understanding that they don\u2019t have budgets for license fees. We do see that users are growing, the views are growing and digital marketing is growing quite dramatically. As the ad dollars start going up and the users migrate to these platforms, I think we\u2019ll see an increasing return on the revenue side.\u201d<\/p>\n

Ad dollars and usage are rising across the board in AVOD in multiple markets.<\/p>\n

In the U.S., the Kids & Family destination on The Roku Channel reached more than 28 million people last year, according to Ashley Hovey, director of AVOD. \u201cContent partners we work with are looking for broad scale,\u201d Hovey says. \u201cThey are looking for reach that they can\u2019t get just with their standalone apps or apps they have on all of these platforms. This is an incremental way to get more audience. They\u2019re looking for not only how do you get that content in front of the audience but how do you monetize it in a way that is brand-safe for advertisers? And they can go back and invest in additional content opportunities, grow that audience and be a trusted source for content creation. That\u2019s what we focus on: How do we continue to be even more effective in monetizing for these partners? And by driving scale for them, [they can] go back and do more. And we work across the board. Creators that are bringing things like Ryan\u2019s World<\/em> and CoComelon<\/em>. We\u2019re working with creators like the Mattels and the Hasbros that continue to evolve for today\u2019s audiences. Post-Covid, there\u2019s a lot of viewing in the house, a lot of co-viewing in the same room, a lot more family time. We\u2019re seeing it on platforms like Roku. Being the number one TV streaming platform in the U.S., we\u2019re seeing tons of that viewing coming in. We\u2019re trying to keep that flywheel going for all of our content partners.\u201d<\/p>\n

SAFE STREAMING<\/strong>
\nKidoodle.TV has carved out its own niche under the Safe Streaming banner. \u201cThe important work we have been doing here at Kidoodle.TV since 2012 has proven incredibly valuable and desired in the post-Covid-19 era we are all living in,\u201d says Brenda Bisner, chief content officer. \u201cWith our growth last year, we have made [Kidoodle.TV] a household name and have become a trusted go-to destination for millions of kids who deserve a safe viewing experience\u2014and for their parents who insist on having one. Our commitment to children and the work we are doing to take care of families is only getting bigger.\u201d<\/p>\n

The platform has amassed a slate of more than 30,000 episodes from a range of key partners. \u201cWe\u2019re a safe alternative to anything else out there, and we are an additional revenue stream to any existing AVOD business you have,\u201d Bisner says. \u201cWe\u2019re looking at partners that have great content that people care about, that we care about, and that care about the important work we\u2019re doing. It\u2019s not just a one-way street for us. The homework around the work we do, how that partner can contribute and be part of this movement, is something we do look at. Knowing people are making money with our channel and lots of it, the strategy is around monitoring the needs of kids. The unicorns\u2014the PAW Patrol<\/em>s, the Peppa<\/em> Pig<\/em>s\u2014we\u2019ll always have those brands, but we can also uncover those gems in the marketplace. Some of these content providers and brand owners are struggling to get traditional broadcast deals struck. We\u2019re able to offer that and get them monetizing and great awareness in a meaningful place because families know they can trust us.\u201d<\/p>\n

Bisner adds, \u201cWhen you\u2019re making content for children, there\u2019s a moral obligation to keep kids safe. Where we\u2019re placing our content should be considered. We pay a competitive CPM, we\u2019re non-exclusive, we\u2019re a meaningful place to put content and have revenue come in and understand that it\u2019s reaching a certain number of children every month.\u201d<\/p>\n

In Europe, Playground TV has positioned itself as a new home for kids\u2019 fare from the less traditional markets. Launched as an AVOD platform, the service is also adding a subscription tier as it gears up for expansion.<\/p>\n

\u201cWe believe the world is growing into a more and more diverse place,\u201d says Daniel Nordberg, CEO and founder of the new service. \u201cWe want to mimic with our portfolio the diverse world we live in. We have cartoons animated in India, China, Iran and Brazil to complement those shows from the bigger studios in the States and Europe. We believe that many amazing productions across the world don\u2019t get their fair amount of exposure on the bigger streaming platforms. As the world is getting more diverse, we want Playground to reflect that in the productions we serve.\u201d<\/p>\n

COMMON SENSE<\/strong>
\nSensical, too\u2014which has the backing of Common Sense Media\u2014has taken a highly curated approach to its selection. \u201cA lot of the creators from whom we\u2019ve licensed love the brand association because you have to be selected,\u201d says Eric Berger, CEO of Common Sense Networks, Common Sense Media\u2019s for-profit arm. \u201cIt\u2019s not a normal licensing deal; it goes both ways. You may want to get in, but you might not pass our criteria. If you went through the whole ratings process\u2014and we watched every frame of every video, through human review, we tag all of it and capture the metadata\u2014it\u2019s a little bit of a badge of honor. At the same time, it\u2019s incremental revenue for them. We\u2019re putting them out onto other platforms they may not be on already\u2014the Rokus, the Amazon Fires, other devices\u2014so it\u2019s a win for everybody.\u201d<\/p>\n

Like almost all other kids\u2019 AVOD services, Sensical\u2019s deals are currently non-exclusive. That may change as the market evolves, Berger says.<\/p>\n

\u201cFor us, the charm of Sensical is the curation. It would be very hard, if not impossible, for anyone else, and certainly a parent, to figure out the appropriate content by age across the breadth of what we\u2019re licensing. That said, as we look at all the data that we\u2019re getting and where people are aggregating, we\u2019ll be able to make informed decisions about where we need exclusivities and original content and other initiatives down the line.\u201d<\/p>\n

At Playground, however, Nordberg is committed to the non-exclusive model. \u201cWe don\u2019t believe in exclusivity at Playground,\u201d he explains. \u201cIt slows down competition, and it\u2019s not beneficial to the producers. Often exclusive deals give a short-term win for both parties, while the production gets lost in the long run. There is an initial boost, and then once that is capitalized on, the productions sometimes disappear within the service. I prefer a time to market or a windowing where within a given period, typically three months, both parties agree to do something and promote the title, and then after that, the parties are free to do whatever they want. I just don\u2019t believe in two years of exclusivity. [Producers] feel it\u2019s a good deal initially. Then one, one and a half years down the line, they want to sell the property, but it\u2019s locked in and not being used. We also want to be the partner that our producers prefer to work with because we\u2019re doing a great job, not because we\u2019re locking them into a contract. We could look in the future at possibly doing windowing or time to market, but we\u2019re not there yet. Currently, all our contracts are non-exclusive.\u201d<\/p>\n

RIGHTS MATTER<\/strong>
\nOn exclusivity in rights deals, Roku\u2019s Hovey explains, \u201cAVOD is special.\u201d Unlike SVOD, where new and exclusive content is key to driving and maintaining subs, \u201cin the ad-supported world, there\u2019s much more of a need for comfort viewing and broad distribution, for kids especially. They want the characters they know and love to be where they are. And they want to be able to find them and immerse themselves in these experiences and this world. We focus much more on an ad-supported, economic-friendly type of model, rather than feeling like exclusive content is the only way.\u201d<\/p>\n

Outside of YouTube, AVOD services are not yet committing considerable sums to exclusivity and originals. But that could be on the horizon as the market matures. \u201cThey have the data, more than anyone, to know what works on their platform,\u201d says Sinking Ship\u2019s Sanagan.<\/p>\n

WildBrain\u2019s Ellenbogen echoed that view at the TV\u2008Kids Festival this year, noting, \u201cOne of the things that we love about working with some of these platforms like Samsung and Comcast Xfinity is the availability of data. We get numbers back. We know who\u2019s watching our shows, and that informs our development process as well as our distribution strategy.\u201d<\/p>\n

\u201cThere\u2019s not been the influx of AVOD commissions that some expected, but there is no shortage of AVOD content arriving on the big platforms,\u201d adds Aardman\u2019s Gladman. \u201cThat said, original content deals still do happen in the AVOD space. If the market competition rises, we will probably see more exclusive\/original deals, as we have seen with SVOD over the years.\u201d<\/p>\n

\u201cI think it\u2019s an ambition,\u201d says Jetpack\u2019s Gardiner. \u201cMany of these platforms are often app-delivered or IPTV-delivered. How do they distinguish themselves? If you\u2019re not YouTube or Roku, how do you distinguish yourself if everyone is showing the same content? Long term, it\u2019s a margin business. If they want to be successful, they\u2019re going to have to have a point of difference. It takes a long time to mature a business to that size, to be able to invest in content.\u201d<\/p>\n

And while the landscape is already quite crowded, Playground\u2019s Nordberg believes that for AVOD to become a serious revenue contributor for kids\u2019 companies, the market needs to get even bigger. \u201cMany of the producers we talk to, their AVOD revenues are coming from very few partners. With that in mind, it\u2019s important to favor more players coming into the market.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Mansha Daswani checks in with a range of distributors and platforms about the booming kids\u2019 AVOD opportunity.<\/p>\n","protected":false},"author":290,"featured_media":21547,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":0,"footnotes":""},"categories":[79,21],"tags":[],"class_list":["post-21546","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-features","category-top-stories","pmpro-has-access"],"yoast_head":"\nFree for All - TVKIDS<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Free for All - TVKIDS\" \/>\n<meta property=\"og:description\" content=\"Mansha Daswani checks in with a range of distributors and platforms about the booming kids\u2019 AVOD opportunity.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/\" \/>\n<meta property=\"og:site_name\" content=\"TVKIDS\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-10T13:00:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-13T16:43:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/worldscreen.com\/tvkids\/wp-content\/uploads\/sites\/9\/2017\/07\/Pocketwwatch-KDS-Mishmash-0921.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"360\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mansha Daswani\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mansha Daswani\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"15 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/\",\"url\":\"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/\",\"name\":\"Free for All - TVKIDS\",\"isPartOf\":{\"@id\":\"https:\/\/worldscreen.com\/tvkids\/#website\"},\"datePublished\":\"2021-12-10T13:00:53+00:00\",\"dateModified\":\"2021-12-13T16:43:22+00:00\",\"author\":{\"@id\":\"https:\/\/worldscreen.com\/tvkids\/#\/schema\/person\/83da304c8bad8bfdb3edd7eb47cfe5ad\"},\"breadcrumb\":{\"@id\":\"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/worldscreen.com\/tvkids\/free-for-all-1021\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/worldscreen.com\/tvkids\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Free for All\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/worldscreen.com\/tvkids\/#website\",\"url\":\"https:\/\/worldscreen.com\/tvkids\/\",\"name\":\"TVKIDS\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/worldscreen.com\/tvkids\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/worldscreen.com\/tvkids\/#\/schema\/person\/83da304c8bad8bfdb3edd7eb47cfe5ad\",\"name\":\"Mansha Daswani\",\"description\":\"Mansha Daswani is the editor-in-chief and associate publisher of World Screen. 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