Despite the unprecedented upheaval of the past year, three quarters of kids entertainment companies are confident they’ll meet their 2021 business targets, according to a new report from The Insights Family.
Of 115 companies surveyed, 90% say they’ll be affected by a post-COVID economic downturn, and 80% expect to be operating completely differently two years from now.
Respondents point to increased fragmentation due to massive growth in streaming and the influx of new platforms as the biggest issue facing the content industry. And this market dynamic is a big reason why nearly 70% of businesses say standing out in a saturated market is their gravest concern right now.
To maximize potential for finding an audience, content creators want to crank up their digital efforts this year. More than two-thirds of businesses are planning to produce more content for social media, and 94% want to increase their YouTube presence. As for traditional TV, only 50% are looking to expand their output for linear. According to the report, six- to nine-year-olds in the US are watching 29% less linear TV now than before the pandemic.
The second most prevalent content-related challenge companies are facing is finding the right distribution partners, followed by creating original content and expanding IPs based on existing properties in third and fourth, respectively. (Interestingly, just 5% of content producers say they will exclusively focus on creating new brands this year.)
Despite the challenges and risks of working in a volatile market, companies are still investing in their futures. Nearly 40% say they anticipate spending more on research and development this year than they did in 2020.
The Insights Family’s “Kids and Family Industry Report 2021″ surveyed 115 kid-focused companies between January 2021 and February 2021. Research was conducted in North America, South America, Europe and Asia-Pacific in sectors including toys and games, entertainment, gaming, education and licensing.