Netflix Q2 2021 Earnings Insights on Netflix’s Kids Strategy

After yesterday’s Netflix call for winners, here are a few thoughts from the perspective of children. Before you dive in, here’s a roundup of some great news that has happened lately and how it relates to kids.

Netflix kids top 10

In the last few weeks a new, dedicated Kids Top 10 has been launched. This combines series and films in a list. They seem to solve a few technical issues, but the good news is that it will slow down the performance of kids’ content for longer. The reasons for this are worth considering, with the main benefit being content recognition for members. Could the next step be the top 10 of all genres? Top 10 Documentaries? Dramas? Stand-up comedies?

For the time being, children’s content will remain in the top 10 of the overall rating. However, it occupies valuable visual space that is not relevant to all members. Children’s films (many from Dreamworks / Illumination more on that in a second) dominate the film top 10 worldwide, and CoComelon remains an integral part of the series top 10 for many markets. However, we recently learned that 60% of the members worldwide are children / View family content. Perhaps that will provide a critical mass of interest to keep it there.

Netflix kids top 10

Netflix kids top 10

It feels like there is still a long way to go in programming / discovering OTT services, even for people who have been doing it for as long as Netflix. They referred to their recently introduced “Play Something” feature in the win certainties. This algorithmically selects something to look at. This begs the question, why non-linear Barker channels that allow sampling? You can see this works for parents and children, especially preschoolers.

In addition to the Kids Top 10, Netflix is ​​also launching a bi-weekly Kids Recap Email for parents. It is sent to members with at least one child profile set up and details what content is being viewed. In addition, there are recommendations and tips for using the functions of the platform.


Content messages for Netflix kids

Big content news this quarter were those Extension of the Netflix / Universal animation film deal. This guarantees Netflix long-term access to Dreamworks and Illumination titles, including upcoming issues from IPs like Minions and Shrek. As already mentioned, many of their predecessors are long-term campers in the top 10 films. This is fantastic news for the Netflix child strategy. Coupled with their excellent relationship with Sony Pictures Animation, they are sure to have big children’s hits for the next few years. Your own in-house film board is still finding a foothold to generate a slam dunk / franchise.

Other big content news was a new deal with Moonbug Entertainment. This also includes the green light of the new original series for CoComelon and Little Baby Bum. Whichever way you roll it, CoComelon was a huge hit on Netflix. The new series of 24 × 7 ‘is expected to appear in 2022.

So yeah, there’s a lot going on on Netflix and the Children’s World. analyst Rich greenfield from LightShed Ventures summed this up in one of his 10 questions for Netflix’s Q2 2021 earnings interview:

Does children’s content influence discovery? The top 10 list feels like valuable property too often inundated with kid content that is not relevant to teen / adult viewers. You recently released a special top 10 for kids. With titles like CocoMelon in the top 10 for a year and children’s films regularly in the top 10, was the goal of excluding kids’ content from the broader top 10 most watched list? Also curious to see how your kids programming strategy will play out after the expansion of your universal animation output deal and a new CocoMelon spin-off working with Moonbug.


Performance data for new children’s content

In terms of content performance, we had 2 new children dates this quarter. The lovely relationship with Sony Pictures Animation produced The Mitchells vs The Machines, “the greatest Netflix animation film to date”. 53 million members viewed the film in the first 28 days. We also got the first performance nugget in a Netflix children’s series. Floor is Lava was launched in 2020 and has been viewed by 37 million members, earning it a second season. The updated ranking of children’s content performance per viewer published by Netflix is ​​below:

Top 10 children's content Netflix datecdotes

Upcoming content for kids

Sony Pictures Animation’s next film, Vivo, was mentioned. The title character, a musical honey bear, is the voice of Lin Manuel Miranda, who also wrote the soundtrack. It’s a busy time for Miranda, he is involved with Encanto and is coming from Walt Disney Animation Studios in November. Other notable children’s films arriving this quarter include My Little Pony: A New Generation and The Loud House Movie.

And finally:

There has been a lot of discussion about Netflix’s entry into the gaming market. In this result, they stated that this had a particular focus on mobile. They see this in the long run as they have built new genres in the past. The idea is that the sum of the parts of games, consumer products and other supporting elements makes Netflix a globally indispensable service.

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