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TV KIDS
The other emerging trend is the growing importance of AVOD (advertising-supported VOD). “The market has tended to focus on SVOD services,” says DHX’s Scherba, “but some markets, like China, place more emphasis on AVOD. And there’s also YouTube, which can generate significant revenues for content owners.” Scherba says that the key with YouTube is to use it in a way that doesn’t conflict with existing commitments. “We have a Teletubbies channel where we place around 100 to 150 clips, the occasional full episode and regular content updates, in multiple languages. It’s a way of maintaining brand awareness while also offering content that is appealing to the target audience. It’s done in a way that wouldn’t prevent us from licensing the show to broadcasters.”
DUAL MODEL One company that has established an unusual position in the market is Splash Entertainment, which is both a kids’ content creator and the owner of a U.S.-based VOD platform called Kabillion. Explaining Kabillion, Splash co-CEO Nicolas Atlan says, “The main part of the business is two parallel AVOD services for boys and girls (Kabillion and Kabillion Girls Rule) that are available in 51 million cable homes in the U.S. These services offer a mix of our own shows and third-party content like Power Rangers, Sonic X and Strawberry Shortcake. A key point about the AVOD services is that we don’t offer series in their entirety. So, content owners can use Kabillion to promote their shows, then go on to do deals for full series with SVOD platforms.” One example of this is a deal Splash has just done with Cyber Group Studios, says Atlan. “We will be showing some
episodes of Ozie Boo! and Mademoiselle Zazie on Kabillion. Then we will also be representing the digital rights of these shows in the U.S., looking to do additional deals for them with SVOD platforms.”
AN APP A DAY In addition to the AVOD service, Splash has a Kabillion YouTube channel and just launched an SVOD app for iOS and Android devices. “The difference with the app is that it is aimed at preschoolers,” says Atlan. “Preschool is an area where parents are looking for safe, ad-free destinations for their children. At the moment, we are mainly using our own content, such as Chloe’s Closet and Dive Olly Dive, but we will look to add third-party shows.” Outside the U.S., Splash is in a similar position to its rivals, looking to do deals with a mix of traditional and digital platforms. “It’s clear that the new digital platforms have created a new opportunity for companies with back catalogue. But the big issue for kids’ producers is still how to build a brand that can be successful in licensing and merchandising. To do that, I think you still need to have your show on linear TV. So, our approach is very much to work with both groups.” Playing both fields—linear and digital OTT—is the strategy of choice for many in the kids’ business. As the industry continues to evolve, one factor remains immutable: children are platform agnostic; they just want fun stories with lovable characters. Because of this, distributors and producers are eager to place their shows on whatever outlet will ensure the best exposure for their properties and reach the largest audience.