here<\/a>.<\/p>\n\u201cThe landscape has been very challenging, not only for the kids\u2019 industry but for the entire entertainment industry\u2014but the kids\u2019 industry is feeling it more so than other genres, certainly in the audiovisual space,\u201d Galton said. \u201cA lot of that has to do with the market constricting. The wars between the big streamers seem to have sort of come to an end. Netflix and the likes of Netflix are understanding better what their audience is looking for. They\u2019re becoming more narrowly focused, which means when they were once open to looking at all different types of kids\u2019 content, now they\u2019re zeroing in on fewer, bigger brands. That\u2019s a challenge for all of us independents out there trying to get new shows away. The advertising market has become very difficult. All of those challenges combined make it very difficult.\u201d<\/p>\n
Consumption habits, of course, are also still in transition. \u201cKids are not necessarily watching linear television anymore. They\u2019re not necessarily watching any sort of content anymore, or at least not in the same way that they used to. They\u2019re playing and living on game platforms a lot more than they had in the past. They\u2019re snacking on content and not necessarily sitting down and watching a whole bunch of content on their own. When kids do that, it\u2019s probably more in the family space with their parents. So, a lot of the broadcast partners are saying, We need content that\u2019s going to work for co-viewing. Those are some of the challenges that we\u2019re experiencing.\u201d<\/p>\n
As for opportunities CAKE is pursuing, Galton noted, \u201cWe\u2019re small enough and nimble enough that we can withstand the down cycle because we\u2019re not laden with debt and we\u2019re not employing hundreds of animators. We still have a strong distribution business. When content is not getting produced, there\u2019s still a need to fill platforms with content. That\u2019s where the distribution business becomes handy. Finished content, library content becomes more important. We use that as an opportunity to wait until the market gets a little bit better, and then we can bring content that\u2019s new. We choose our projects pretty well. We do see opportunities in small pockets here and there.\u201d<\/p>\n
The session then moved to brand-building amid a fragmented media market. \u201cWe can do so much on our side; it\u2019s really what our broadcast partners could do with those projects and how they help them sustain a life with their audience. We can give them as much ammunition as possible to help them succeed. That\u2019s generally in delivering a really good show that has great storytelling and good characters. Ultimately, we have to figure out a way to connect with the audience. We\u2019re always working with the broadcast partners to help them do that. In this new world where you can share more, putting the shows on multiple platforms seems to allow known IP to have greater success.\u201d<\/p>\n
Galton then discussed his perspective on exclusivity and rights sharing. \u201cI\u2019ve been an advocate of non-exclusive rights for as long as I\u2019ve been doing this. Especially in the kids\u2019 business, the need for content to be everywhere is really important. We\u2019re finally seeing a willingness to share more than ever before. Part of that has to do with the economics. Platforms are saying, Well, if we can pay less, but we can share windows, that\u2019s a win for us, and it\u2019s a win for you. Is it a win for us, economically speaking? Maybe a little bit; maybe not\u2014that\u2019s still yet to be determined. But if the show that we\u2019re putting on the platforms can be more successful as a result, then that\u2019s the win. We\u2019re seeing more of that happen now in the economic downturn than we had in the past. I also think people are starting to see the data, and the data supports that they don\u2019t really have a degradation of audience by having these non-exclusive rights work with particular brands.\u201d<\/p>\n
Galton sees opportunities in FAST but is cautious about that space at present. \u201cIf you talk to people in other genres, they\u2019re seeing a better return. The advertising market hasn\u2019t matured enough yet. While there are going to be opportunities, and I\u2019m a big believer in the AVOD space, I don\u2019t think it\u2019s really provided the type of return that we would hope for so far. I certainly wouldn\u2019t want my business model to be reliant on AVOD revenues. Moving down the line, once it matures, it\u2019ll be an interesting business.\u201d<\/p>\n
Gaming, too, holds potential. \u201cWe understand the power of Roblox and what\u2019s going on there. We\u2019re trying to figure out how our content can live on that platform. The challenge is how do you monetize that? How do we turn that into a meaningful business? There are some conversations that we\u2019re having in that space, too, but they\u2019re still in their somewhat infant stage.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Ed Galton, the CEO of CAKE, discussed his perspectives on exclusivity, windowing and navigating current market conditions at the TV Kids Festival today.<\/p>\n","protected":false},"author":290,"featured_media":26771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":0,"footnotes":""},"categories":[21],"tags":[100,4821,9024],"class_list":["post-26770","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-top-stories","tag-cake","tag-ed-galton","tag-tv-kids-festival-2024","pmpro-has-access"],"yoast_head":"\n
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