Kids content on streaming is king as media companies chase profits

Introduction to Kids’ Shows as a Tool for Streaming Services

In the battle among streaming services to capture and keep subscribers, kids’ shows like "CoComelon" and "Bluey" are becoming powerful tools to help win the war. Retaining customers has proven to be one of the biggest hurdles in the build-out of streaming. When Netflix reported subscriber losses in 2022, it sent a ripple effect through the industry and media companies began leaning into advertising and other business models to focus on profitability.

The Importance of Kids’ Content

Companies like Warner Bros. Discovery and Disney have been vocal about the need for quality content to drive subscriber growth. Children’s programming offers a unique value proposition for the streaming equation: it’s less expensive and has more longevity than other forms of content. "Kids’ content drives a huge amount of engagement because kids watch it over and over and over and over. They never tire of it," said Kevin Mayer, co-CEO of Candle Media, which owns Moonbug, the distributor of hit kids’ shows such as "CoComelon" and "Blippi."

Reducing Churn

Mayer said reducing churn — industry jargon for customer losses — is the most substantial factor in improving streaming services’ economics, even more so than gaining new subscribers or generating revenue from those customers. "If you churn, you lose subscribers, your top line diminishes. You have to spend marketing dollars to replenish, either to re-market to lost subscribers or to find new ones," said Mayer.

Kids’ Viewing Habits

Kids tend to repeat watching shows and movies, and it shows in the data. When there was initially only one season of "CoComelon" on Netflix, kids watched the same episodes multiple times, said Brian Fuhrer, senior vice president of product strategy and thought leadership at Nielsen. The 154 episodes of animated Australian hit series "Bluey," which streams on Disney+, had more than 25 billion minutes viewed in the first half of 2025, according to a Nielsen report released in July.

The Role of YouTube

Live sports and hit TV series are often credited with drawing the biggest audiences and driving short-term subscriber additions for streamers, but services that feature strong portfolios of children’s content offer parents a reason to stick with subscriptions longer term, industry analysts and experts told CNBC. YouTube consistently pulls the highest TV viewership among all streaming platforms, according to Nielsen. As of June, YouTube accounted for 12.8% of overall streaming on the TV, surpassing Netflix and Disney+, Nielsen reported.

YouTube as a Partner

Even Netflix, the streaming juggernaut that upended the media industry, is faced with the reality that social media platform YouTube is dominating streaming on the TV screen. "I would say YouTube is part of everybody’s media strategy," said Andy Heyward, a longtime media executive in the kids’ television industry and CEO of Kartoon Studios. Traditional media companies are increasingly working "as close partners" with YouTube — creating and curating YouTube channels with clips from specific content and TV networks, and even creating shows just for the platform.

CoComelon and Other Shows

Meanwhile, traditional media companies are also looking to YouTube for new forms of content to add to their platform. In recent years, content makers who started out on YouTube have signed licensing deals with top streaming services. "We want to be in business with the best creatives on the planet, regardless where they come from," said Netflix co-CEO Ted Sarandos during Thursday’s earnings call with investors. "CoComelon" in particular stands out, having originated on YouTube and still reaching much of its viewers there, but when Netflix acquired a subset of its content in 2020, it was a boost for Netflix’s viewership.

Conclusion

In conclusion, kids’ shows are a crucial tool for streaming services to retain subscribers and drive engagement. With their low production costs and high re-watch value, kids’ content offers a unique value proposition for streaming services. As the streaming landscape continues to evolve, it will be interesting to see how media companies continue to utilize kids’ content and partner with platforms like YouTube to drive growth and retention.

FAQs

Q: What is the importance of kids’ content for streaming services?

A: Kids’ content is important for streaming services because it drives engagement, has low production costs, and has high re-watch value, making it a unique value proposition for streaming services.

Q: How does YouTube fit into the streaming landscape?

A: YouTube is a dominant player in the streaming landscape, with the highest TV viewership among all streaming platforms, and is increasingly being used as a partner by traditional media companies to create and curate content.

Q: What is the role of shows like "CoComelon" in the streaming landscape?

A: Shows like "CoComelon" are highly popular and have high re-watch value, making them attractive to streaming services looking to drive engagement and retention.

Q: How do streaming services use kids’ content to retain subscribers?

A: Streaming services use kids’ content to retain subscribers by offering a range of popular and engaging shows that parents and children can watch together, making it a reason for parents to stick with their subscriptions longer term.

Q: What is the future of kids’ content in the streaming landscape?

A: The future of kids’ content in the streaming landscape is likely to involve continued partnerships between traditional media companies and platforms like YouTube, as well as the development of new and innovative content that drives engagement and retention.