How streamers can capitalize on the demand for kids’ content

Even if you don’t have kids, you’ve probably heard of “Bluey.”

The Australian children’s TV series, which streams on Disney+ in some outside markets, was 2024’s biggest streaming series in the U.S., notching 842 million hours of viewing through November, according to Nielsen. A “Bluey” movie is now in the works, which will be released in theaters by Disney in 2027 before making its way to Disney+.

The show is just one example of how important kids' content can be to streaming platforms looking to appeal to the next generation of fans. Kids' series “Cocomelon” and “Gaby’s Dollhouse,” which are available on Netflix, were among the most-streamed shows of 2023. And “Moana” was the biggest streaming movie of that year; in fact, the top seven of 10 most-watched movies on streaming platforms last year were animated.

This content could also go a long way in converting eyeballs from arguably the premium streaming industry’s biggest competitor, YouTube. In July, for instance, nearly a third of viewers in the U.S. were under 18, according to Nielsen.

But while it seems like children’s content is more popular than ever thanks to streaming, media companies have slowed investment in new content in the category, according to experts The Current spoke with. That presents an immense opportunity for premium content providers to meet demand.

“There’s a commonly held notion that kid's content doesn’t necessarily increase subscriber numbers, but it does help to stem churn,” says Jo Redfern, a media strategy consultant. “However, at a time when streamers are pulling back commissioning budgets, directing spend towards tentpole series and live sports, and because kids content has a longer shelf life, we’ve seen a shift in focus away from content made for kids.”

Challenges offer opportunities

Kids' content was among the hardest hit genres as “peak TV” came to an end.

Commissions for kids' content dropped 13% in the first half of 2024 from the same period in 2023. That’s a higher rate than that of overall TV commissions, which fell 5% in 2024 compared to the previous year, after an era of unprecedented growth for the TV industry.

There’s good news, though: “Although streamers aren’t funding a high volume of new commissions, they are still spending on high volumes of acquired children’s content,” Olivia Deane, an Ampere Analysis research manager, said during a presentation at the MIPjunior conference in October.

For instance, Netflix’s commissions for new kids' content dropped 42% from the first half of 2023 to the same period in 2024, according to Ampere Analysis, but its acquisitions in the category jumped 7% in that time.

Netflix in particular has found success with IP that originated on YouTube, such as “Cocomelon,” Nielsen’s fifth most-watched acquired streaming show in the U.S. of 2023. The company also recently announced that some episodes of YouTube’s Ms. Rachel will be available to stream starting Jan. 27.

“Netflix offers an element of opportunity for YouTube IP,” says Emily Horgan, a media consultant and former Disney executive, who recently published an in-depth report on Netflix kids' content. “There’s more legitimacy and it’s a safer environment [for kids]. That’s something that can drive overall fandom and viewership.”

But while YouTube has been a place for fresh kids' content, the category has faced its share of challenges on that platform, too. Starting in 2020, data collection was blocked for children’s videos on the platform, meaning lower ad revenue. The rule change followed a settlement YouTube reached with the FTC the previous September, which prohibited YouTube from using ad targeting on anyone under 13 without parental consent.

Experts say premium content providers need to once again take risks on investing in original IP, while using YouTube as more of a cross-platform marketing tool.

“The premium streamers might consider YouTube a place to test, learn, build hype and funnel viewers to their ecosystem for the main event,” Redfern says. “In this way, cross-platform content strategies can drive engagement, provided there is delineation between YouTube content and the premium streamer.”

The power of patience

Patience is key; the next Bluey might take some time to nurture.

“Kids go through phases where they watch something on repeat for months,” Horgan says. “The binge behavior of kids doesn’t exist on the timeline of studios.”

Netflix, for instance, ranks its biggest movies and shows on how many views they generate in their first 91 days of availability.

“Bluey is the biggest show on streaming, but that’s five years in the making,” Horgan adds.

Redfern says that while it’s not easy to replicate the success of that show, premium streamers can start by identifying “culturally resonant but universal themes that appeal to kids and parents.”