.<\/strong> \u201cIt\u2019s this amazing network that cuts across all connected devices, YouTube and TikTok. We believe it\u2019s the safest kids\u2019 streaming service out there. And the largest catalog of age-appropriate content. It\u2019s kid-designed from the ground up.\u201d<\/p>\nBerger noted that Sensical was crafted based on Common Sense Media\u2019s long-standing insights into kids\u2019 media trends, notably the \u201cgravitation to large, open, user-generated platforms. About 80 percent of kids spend an hour a day on these platforms. Most of them are looking at independent creators that connect with their interests and passions. The problem is that these platforms are driven by algorithms, and these can lead kids into some unsafe places, unsafe content and inappropriate advertising.\u201d<\/p>\n
Sensical is rooted in the \u201cbelief that kids deserve better,\u201d Berger noted. \u201cWe built the service from the ground up to meet kids where they are. It\u2019s the short-form, creator-driven content that they\u2019ve demonstrated they love. It\u2019s learning-based. It\u2019s age-appropriate. And it\u2019s grounded from a content level to connect with the changing demographics you see in the market. We want the content we license and program to be a reflection [of diverse audiences], so kids can see themselves and others.\u201d<\/p>\n
Sensical is programmed for three core demos: Preschool (2 to 4), Little Kids (5 to 7) and Big Kids (8 to 10). Since the platform\u2019s launch last year, the team has realized that the preschool segment is spending the most time engaging with the content. \u201cYou want the content to be high-quality and value-added,\u201d he noted. The platform also launched with content based on kids\u2019 interests. \u201cThere\u2019s a very broad range of interests. For some other services, the viewership is concentrated on a few tentpole shows. [On Sensical,] the kids are finding things that speak to them from a passion perspective, and they\u2019re safely going down that rabbit hole.\u201d<\/p>\n
The growth in connected TVs and living room viewing has also emerged as a critical factor for the platform\u2019s strategy. Sensical also recently rolled out podcasts \u201cso kids can have a non-video experience. It\u2019s been really fun to see the uptake in kids having that kind of experience on the platform.\u201d<\/p>\n
On the programming strategy, Berger stated: \u201cWe\u2019ve looked at tens of thousands of videos, and we\u2019ve licensed 15,000 for these three distinctive age groups. It\u2019s all done against this rubric we\u2019ve developed over 20 years of Common Sense Media and adapted to short-form within Sensical. The rubric looks at a number of strict criteria: by age, by learning, by characteristics such as empathy, teamwork and role models. And, of course, the topics kids love. We\u2019ve pulled [these licensed shows] into a unique programming strategy that is interest-based. There are about 60 channels on the service that generally are formed around either how-to\u2014in sports, drawing, cooking, DIY, building\u2014or these passion areas that kids love, like video games, animals, space, nature. And then there are the learning fundamentals. ABCs and counting at the young end, music, making and moving, science and history as they get a bit older.\u201d<\/p>\n
Licensed content has been a mix of digital-first shows\u2014about 70 percent of the content lineup\u2014and big brands from major studios. \u201cA lot of these new creators are looking to get onto new platforms and connected TVs and into the living room and are looking for incremental revenues in the process.\u201d<\/p>\n
Deals are largely non-exclusive, Berger noted. \u201cIt\u2019s been beneficial for us to get as much content as we can onto the service that meets our criteria because we\u2019re going for a breadth play here, hundreds of shows. The charm is in the curation. It would be impossible for a parent or caregiver to find the good stuff across all these platforms. Bringing it all together makes it exclusive in the sense that when it\u2019s all said and done; it\u2019s unique in the packaging. Over time, as we get more informed with data and understand where there are gaps we can fill or opportunities we can grow, we might start to look more to exclusives and even original programming.\u201d<\/p>\n
There are about 48 million kids under 12 in the U.S. \u201cWorldwide it\u2019s 2 billion,\u201d said Berger on Sensical\u2019s international growth opportunities. \u201cThe issues that I mentioned before are the same in terms of algorithms and open user-generated platforms. We want to get the offering out there by later in 2022. We want to give the same curation and high-quality video that makes screen time valuable to parents and families everywhere. We\u2019ll probably focus on the big AVOD territories first, so U.K., Canada, Australia, but also France, Germany and Spain in Europe, Brazil and Mexico in Latin America, and we\u2019ll look at Japan as well.\u201d<\/p>\n
In terms of the business model, Berger said that the advertising needs to be as appropriate as the content experience itself. \u201cEverything is COPPA certified. We want to align with other content standards we have on the service. No sugary snacks. No fast foods. We focus on categories that are valuable to parents and kids and align with the content. Education. Select consumer products. Certain retail, entertainment [experiences], movement and play.\u201d<\/p>\n
Berger was previously at Sony Pictures Entertainment, where he architected Crackle as an AVOD service, a space that was unexplored at the time. \u201cWe were very early. We had to do a lot of education, with brands, with consumers, with content suppliers. That\u2019s all understood now. AVOD is a $10-billion market. Connected TV is growing like crazy. That part is easier. Also, having done all of that and understanding who the tech providers are and who the distributors are enabled us to launch Sensical within 11 months. The challenging part is it\u2019s a very competitive market in general entertainment in particular. The large streaming companies are out there battling it out and spending a lot of money. If you\u2019re not one of them, you need to be very focused and have a specific offering that is differentiated. If it falls in the middle, you might get lost in the shuffle. Between the intellectual property and the brand from Common Sense, what we\u2019re pulling together in terms of short-form content, creator-driven, intra-space learning, tools like the Parent Zone, all filtered through this rubric, is highly differentiated and in line with what parents are looking for.\u201d<\/p>\n
As for measuring success, key factors include customer acquisition at the right costs, user engagement time and retention, and of course, monetization. \u201cBut, we also look at the value across the different stakeholders. From a parents\u2019 perspective, are we getting positive feedback? Are we making their lives easier by providing them a service that would be hard to do themselves? For the creators that we\u2019re bringing onto the platform, are we creating wealth for them? For our advertising partners, are we creating opportunities to reach audiences safely, in a way that would be very difficult for them to do without a lot of the data and knowledge we\u2019re supplying? Our child development partners\u2014are we fostering learning and growth in kids today? And from a kid\u2019s perspective, are they loving the product? That\u2019s what matters. That there is a way to have healthy screen time and make screen time valuable for kids that is also fun.\u201d<\/p>\n
Expanding the lineups of TV shows, podcasts and read-along experiences are all part of Sensical\u2019s growth path for the year ahead, along with more \u201cdo-together\u201d activities that kids can engage with off-screen. FAST channels are also a growth area, Berger said. \u201cThere is a place for lean-back here, where people just want to be programmed to and sit back in the living room and watch. That is a growing part of our business and we\u2019ll continue to roll out some of those channels. You\u2019ll also see in 2023 some subscription channels from us for those parents looking for a non-advertising experience. And then, of course, international.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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