As the commissioning downturn continues to affect the global kids entertainment business, content producers are increasingly turning to digital platforms like Roblox, YouTube and Fortnite for brand monetization opportunities. In this deep dive into digital, Kidscreen explores what’s driving this future-focused content strategy, how some of the most successful companies are monetizing their digital-first IPs.

Building blocks

How London-based Blue Zoo is laying the foundation for long-term success by bolstering its digital business.

For more than two decades, Blue Zoo founders Oli Hyatt, Adam Shaw and Tom Box have maintained the studio’s reputation as one of the UK’s leading animation producers, delivering a wide range kids content like Go Jetters and The Adventures of Paddington to broadcasters and platforms including CBeebies, Nickelodeon, Netflix and Amazon.

Aiming to thrive for another 20 years, the studio is doubling down on its digital business under digital director Stephanie Gauld, whose previous roles have included head of digital at Acamar Films (Bing) and head of Disney Online Studios EMEA.

When Gauld joined in 2019, Blue Zoo only had five free and premium Blocks brand apps, and just four externally managed YouTube channels. Its social media platforms were also managed externally at the time. But since then, all digital management has gradually been brought in house. 

“Now, in partnership with Alphablocks Limited, Blue Zoo has a multichannel network of 14 YouTube channels; an app library that’s grown to 16 free and premium titles; we’ve launched six individual language channels as well as multi-language audio streams on individual channels, and subscription apps with VOD and interactive content for deeper experiences; and we’ve built out our digital marketing and social media,” Gauld says. “We’ve seen a lot of growth in all of these areas, but it still feels like we’re in startup mode.”

Blue Zoo currently has more than 22 million subscribers and upwards of 14 billion lifetime views across all of its YouTube channels.

The studio is also in the middle of launching Blue Zoo Connected, a new initiative led by Hyatt that lets the company’s animation, licensing, sales and digital divisions work together more collaboratively on launch and monetization strategies.

“These days, it’s a business of scale and layers, beginning with an audience-first approach,” says Gauld.

The crown jewel in Blue Zoo’s digital roadmap is its BAFTA-winning educational preschool franchise Blocks. Created by Joe Elliot and produced by Alphablocks Limited in partnership with Blue Zoo, Alphablocks debuted on CBeebies in 2010, spawning Numberblocks (pictured, top) in 2017 and Colourblocks in 2022. All three shows are still going strong, having recently been renewed by the Beeb until 2027.

Earlier this year, the Blocks YouTube channels were generating around 25 million to 33 million views a day, up from roughly 10 million in 2023, says Gauld. “We’ve applied lots of different strategies, but optimization is a really big one,” she notes. 

“We have a team that’s constantly analyzing performance, and we also work closely with the YouTube Kids publishing calendar, tying in with key moments throughout the year like summer holidays, the back-to-school period, Halloween and Christmas, for example.”

YouTube Kids Shorts has been a go-to platform for Blue Zoo to optimize short-form content (one minute or less), while the studio’s long-form content on YouTube is usually eight to 10 minutes or longer. “We try to avoid those three- to five-minute lengths, as they aren’t great in terms of how we see them supported by the YouTube algorithm,” says Gauld.

Blue Zoo also tracks key performance indicators such as views, engagement and revenue. “We look for potential revenue-making projects to ideally break even within two years, but when we back an IP where the data proves there is strong engagement, we will keep building this,” she explains. “But engagement is a big one. We’ll look at average percentage viewed or the time that children are not spending with a piece of content [a.k.a. skipping over]. This obviously differs by platform, brand and age, and it depends on the depth of content, but engagement is a massive indicator of how well something’s performing—even more so than views.”

One of the biggest challenges remains discoverability, according to Gauld. “It’s only becoming more intense, so lining up your marketing and optimization to get the biggest buzz around a brand is key.”

Her advice to new studios just starting out on their digital content journey is to not take a half-hearted approach. “I don’t think you can try to make a little bit of digital content and see if it works, because it’s most likely not going to work.”

Gauld stresses the importance of working with somebody who’s done it before; who has a proven track record of success; and who will help you work out a strong strategy that’s relevant to your audience and brand, and that supports a vertical of content that can be iterated and expanded upon. 

“Find someone who can help you create the roadmap,” she says. “And always go in with a long-term vision.”


Game mode activated

Moonbug Entertainment is betting big on digital games to bring franchises like CoComelon and Blippi to an even wider audience.

Just when parents thought preschool hits CoComelon and Blippi from Candle Media’s Moonbug Entertainment couldn’t get any bigger, the company decided to enter the digital gaming space to best cater to the ever-evolving desires of kids.

London-based Moonbug’s new digital strategy kicked off in fall 2022 when it launched its first-ever video game, Play with JJ, on Nintendo Switch. Published by Outright Games and developed by SockMonkey Studios, the console title is based on YouTube phenom CoComelon and lets users play as the show’s popular four-year-old protagonist JJ, exploring his house and garden, and participating in activities like gardening and hide-and-seek.

Well-known for helping preschoolers learn through catchy versions of classic children’s songs, Moonbug added more than 20 songs from CoComelon to the game, including the familiar tunes “Old MacDonald” and “Itsy Bitsy Spider.”

CoComelon’s breadth of music and the ways in which the IP lets kids interact with songs is a key differentiating factor for Moonbug’s latest game, CoComelon – Kids Learn & Play, says Ed Barton, VP of games and interactive. Launched in August 2024, the subscription app is Moonbug’s first mobile game and also its first self-published title, offering more of an open-ended, sandbox space for kids.

Moonbug’s latest digital game based on the hugely popular CoComelon franchise, CoComelon – Kids Learn & Play is its first self-published game and first mobile app

“It stands out because it’s a 2D-animated version of the CG-animated CoComelon universe, but also because it’s different from other learning apps, which very rarely have full integration with a brand’s music,” says Barton. “For us, it was really important that it was actually a fully interactive platform and not simply a video platform.”

In terms of its rollout strategy for games, Moonbug had a plan to release a string of products over the course of a year. Following the release of Play with JJ, Netflix reached out to add the game to its gaming platform in 2023. And Moonbug’s second game, Blippi’s Playground, landed on Roblox the same year.

“Even though we were developing our own mobile apps at the same time as Playground, it came out first because the Roblox development cycle is so much faster,” says Barton.

“On Roblox, you generally look to put a product out to market after maybe 12 weeks of development, and then iterate over time. Whereas with mobile apps, we wanted to take a bit more time to develop them.”

For the latest Blippi’s Playground update, Moonbug decided to change the mechanics of the game in a way that would drive more traffic to Blippi on YouTube, and then back to Roblox. Rebranded as Find the Blippis, the goal of the game is to locate 100 different variations of Blippi (such as Blippi disguised as the Statue of Liberty, or as a blimp called Blimppi).

The Find the Blippis Roblox game is designed to drive traffic to Blippi’s Roblox Gaming Videos YouTube channel, while the YouTube content provides clues that send viewers back to the game

“For the YouTube-to-Roblox link, we created YouTube content that gives you clues to help you in the game, and we’re creating game content that will make you want to watch YouTube,” says Barton.

As for how Moonbug’s first three games are performing, Barton can’t disclose numbers, but says the company is “very happy” and that the titles are generally tracking above expectations.

That said, he notes that on Roblox, there are generally lower development costs and lower revenue compared to mobile, which has a relatively larger market size.

“For us, it’s really about going after something when we know there’s sufficient market demand, and then sizing the investment we make appropriately,” says Barton. “The biggest opportunity is making quality platform-first products that are safe spaces for kids. So for Roblox, it’s making something that the community really loves; and on mobile, it’s making something that parents really love.”


Forever playful

Toca Boca is growing with its audience, while staying true to its mission of creating safe, open-ended worlds that encourage exploration, creativity and expression.

When Swedish kids app developer Toca Boca launched in 2011, a big part of its mission was to foster generations of playful people. Nearly 50 apps and more than 70 million monthly active users later, it’s safe to say the company’s vision is coming to fruition.

Acquired by Canadian toymaker Spin Master in 2016, the developer is wrapping up a pivotal year that saw it expand from focusing on the preschool and kids demos to wade into tween territory by teaming up this summer with global popstar Conan Gray for Toca’s first-ever music collaboration.

Toca Boca World recently expanded into tween territory, partnering with global popstar Conan Gray for the company’s first-ever music collaboration

Designed to empower self-expression, the partnership featured a Conan Gray takeover of Toca Boca World‘s in-game music festival stage, as well as a new themed music player and customizable digital items players could use to craft their own unique Conan Gray-inspired experiences and stories.

This isn’t the first time Toca Boca has activated co-branded digital items within its biggest app. Partnerships with Hello Kitty and SpongeBob SquarePants launched in 2023 with successful returns. And when the company re-released a Hello Kitty furniture pack in January, it generated more than US$900,000 of revenue in a week, said Spin Master president and CEO Max Rangel in the company’s first-quarter earnings call. Although no figures have been revealed yet, fans are also “responding positively” to the Conan Gray collab, Rangel noted in his summary of Q2.

“When we listen to our players, meet their needs and find relevant content they will enjoy, their positive reactions are materialized across the business,” says Marc De Vellis, Spin Master’s global head of studios and digital games. “We’re always looking for opportunities to enhance the experience and drive the highest levels of engagement possible because the center of monetization is strong engagement.”

In fact, engagement has remained near Toca Boca World‘s all-time high—the app’s monthly active user base was up 3% to 61 million at the end of this year’s second quarter.

Elsewhere in the Toca Boca universe, the company’s first-ever multiplayer 3D online game Toca Boca Days was released this year, tapping into the growing tween gaming category worldwide.

After soft-launching in Australia and New Zealand this summer, the title generated “healthy organic installs,” according to the company’s Q1 results. Toca Boca Days will roll out internationally in the coming months on a market-by-market basis, beginning with Canada, Sweden, the UK and Germany.

“Toca Days is part of a larger strategic expansion of our player network that includes attracting new age groups to our digital games,” says De Vellis. “So from an early age into their teenage years, Toca Boca plays a key recurring role in players’ lives. Our ability to monetize across a broad age spectrum is unique because typical brands or franchises usually churn once a player ages out.”

Another growth driver for Toca Boca has been subscriptions. Led by Piknik—a US$11.99 monthly curated collection of award-winning apps from Toca Boca, its subsidiary Sago Mini and kids app-maker Originator—the company’s subscription business increased by 8% from 399,000 subscribers in December last year to 430,000 subscribers at the end of Q1 2024. Drilling down, Piknik and Sago Mini claimed 374,000 subscribers, while Spin’s PAW Patrol Academy accounted for 56,000.

“We’ve seen healthy year-over-year growth because parents are finding the value and telling other parents, which boosts our organic traffic,” notes De Vellis.

Looking at additional opportunities, YouTube and other social channels will be a focus for Toca Boca in the future, he adds. “We want to tell stories as part of the Toca Boca brand, and we also want our large community to tell their stories on social channels.”

As for the company’s biggest challenge, De Vellis says meeting the needs of so many players around the world takes a large effort, but it’s a responsibility Toca Boca doesn’t take lightly. “Staying relevant to kids for not only the next decade, but for generations to come, is the purest opportunity. That’s what’s special.”

Meeting fans where they are 

Cloudco is evolving its flagship Care Bears brand into a multi-platform juggernaut to connect with next-gen fans and nostalgia-seekers.

Name-drop just about any digital platform that kids are flocking to these days, and there’s a pretty good chance you’ll run into a Care Bear.

Over the past few years, Cloudco Entertainment—owner of the iconic Care Bears brand—has significantly evolved its digital kids content strategy, shifting from focusing primarily on successful linear shows to developing multi-platform IPs that enhance fan experiences and promote global growth, says Ian Lambur, EVP of content strategy, co-productions, global distribution and digital.

This year alone, Care Bears hugged their way into three high-performing, open-world kids universes for the first time, with launches on Roblox, Fortnite (Epic Games) and PK XD (Afterverse).

The Care Bears have taken a big step this year by entering open-world kids universes, including Afterverse’s growing PK XD platform

For its established brands like Care Bears, Cloudco employs a digital strategy that usually prioritizes exposure over direct content monetization.

“This might mean engaging with newer content platforms like Roblox, Fortnite, casual apps and various metaverses, in addition to traditional TV content spaces,” explains Lambur.

If Cloudco identifies an IP as primarily content-driven (or just a great show)—particularly if it’s a brand-new IP—its approach differs slightly in that discoverability becomes the key driver. Its strategy in these scenarios is to meet viewers where they are, and also pilot them to where Cloudco wants them to be.

“This approach leads us to explore every feasible platform and enhance our presence with strategic social media content,” says Lambur.

Cloudco’s strategy is to take incremental steps to establish a new IP’s presence and potential, with the initial focus on securing collaborations with existing and established apps or games. “This allows a new IP to make short-term appearances that not only enhance the performance of the collaborating brand or game, but also provide the brands themselves with success stories and valuable data.”

Once a solid foundation is established, it increases the chances of the new IP expanding on its own across digital platforms like apps, YouTube, Roblox, streaming services, gaming, AVOD, online platforms and social media, adds Lambur.

For newcomers to digital work, he notes the importance of distributing the effort over time. “Unlike traditional series, where much of the work happens up front, digital projects demand ongoing attention long after the initial deal is done,” he says. “The real work begins with the continuous cycle of managing, marketing, growing and promoting because digital content like apps, games or virtual worlds need regular updates to stay fresh and competitive.”

For example, Cloudco dropped new features, challenges and thematic elements into its Care Bears game on PK XD in August after initially launching Care Bears gameplay on the platform in April. For its debut, nearly 10 million users engaged with the content, which was an “overwhelming response,” according to Cloudco. Since launching in 2019 across iOS, Android and desktop platforms, there have been nearly a billion installs on PK XD worldwide.

Looking to the future, Lambur says the biggest challenge in terms of digital strategy—particularly with legacy brands like Care Bears and Madballs—is deciding which opportunities to pursue and which ones to let go, since Cloudco’s digital initiatives need to align with broader brand strategies and complement other efforts.

“It’s crucial to choose wisely. From a monetization perspective, digital can be hit or miss—many initiatives might not yield high financial returns, while a few break through and succeed spectacularly,” he notes. “That said, even those efforts that don’t meet financial expectations, if done well and on brand, can still add value and contribute positively to our larger brand strategy.”