In this Q4, Netflix has taken a blockbuster entry into the kids StreamerSphere, as the quarterly results as it has holds Netflix’s kid’s strategy. This is kids StreamerSphere is mainly a regular newsletter first released on LinkedIn. It has looking for the latest news, deals, and performance data for kids’ content within global streaming.
Just working on the media, you’d have to stay under a rock that has missed those key headlines from the recent Netflix earnings call. The founder and co-CEO Reed Hastings declared his decision to step down. There was some online banter with in-depth descriptions of having a smooth succession process providing the shade on core competitor Disney.
The baton has been passed to Ted Sarandos, already in place in the role, alongside the newly appointed Greg Peters. The former COO had been cleared on gaining visibility in corporate over the past few months. Along with recent turbulence, there have been several snarks about whether Hastings would be able to pass his own notorious “keeper test.”
On a cascade moves, Bela Bajaria has taken over Sarandos’ meager side hustle as CCO, and Scott Stuber went from “Head” to “Chairman” of Netflix Film.
The subscribers grew more than the abysmal forecast… Guidance from the last quarter was a boost of 4.6M, which would have been Netflix’s weakest Q4 since 2014. Ultimately it dropped to +7.6M, with additions across all markets, notably EMEA up 3.2M. #ThankYouWednesday
On adding sales that are crawling but in a good way. The advertising tier had launched just two months ago. So far, Netflix is watching good engagement from the users choosing this option, who are happy with the technical interface and experience. There the streamer is seeing fewer subscribers than it feared downgrade from premium. Netflix’s bottom line position on this is they’re crawling before they walk, let alone run. As a reminder, no ads are shown on Netflix in kids’ profiles.
Netflix Kids Q4 2022: Status
Franchise and consumer products were discussed in relation to Wednesday’s Mac makeup palette, but it sounds like this was more of a hands-off back end for Netflix rather than anything they were driving for themselves. The impact of growing talent was also mentioned; however, Disney Channel folks among us would argue, “IT WASN’T JUST NETFLIX THAT BUILT JENNA ORTEGA AND SOFIA CARSON, TED!” Talent was a core focus of the Disney Channel under Gary Marsh. Just ask Zendaya.
Nuggets of content performance data seem to be less prevalent in earnings calls nowadays, probably because where before there was fish, there is now a fish pond in the form of the Netflix Global Hours Viewed Top 10 that the streamer releases weekly (abbreviated to NGHV Top 10 going forward for brevity—corporate habits die hard). If you’re comfortable with me being your, er, I guess, fishing rod, then read on, and I’ll tell you what I can, er, catch.
Netflix Q4 2022 Kids Content Highlights
Kids Series Status
Tracking the performance of those kids’ series on streaming is like pulling teeth unless your name is CoComelon. This is the reason why I was excited to see Sonic Prime set a new record for an animated series debut:
Sonic the Hedgehog 2 had become the second highest animated box office of 2022, both domestically and internationally, coming behind Minions: The Rise of Gru. It doesn’t matter what rights Netflix had for Sonic 1 had revealed to be lingering in the NGHV Top 10 for eight weeks over the summer, presumably driven by marketing and interest in the sequel. For the IP, we have seen a very good result.
There is also another series worth keeping an eye on Little Angel. Moonbug Kids won this YouTube IP at the start of last year. It globally hit on Netflix in October and popped into the NGHV Top 10 across two weeks. Additionally, it grabbed such excellent Trending on Top 10 results that have rubbed shoulders with some high-performing shows in the annual kids’ roundup, despite only being around for the last quarter.
Kids Movies Status
For the animated movies, Q4 was CURSED, as it was Globally acquired/produced more animated films have had a certain bankability in featuring in the GHV Top 10 since its launch, without needing any of such high profile or serious marketing spend. They have confirmed that they have never ever passed through this chance on talking about the success of Chickenhare along with the Hamster of Darkness, with the little film that might. This is the reason it had a surprise that the beginning of the quarter of two such significant misses in this space. Wendell & Wild and My Father’s Dragon, two true Netflix Original movies, coming from Oscar-nominated animation creators, failed to break through. Wendell & Wild was door-jammed between a rock and a hard place. Its PG-13 rating kept it out of the kid’s section, and its appeal to adults is arguably niche.
On moving to the live-action films, it feels like Netflix’s strategy here has evolved. While it has played like a true family, sit-down, Saturday night space. The streamer has speckled in the film that confirms to have appeal for older kids, young teens, and up.
In the older teen space, the most highly performing part of Netflix’s content strategy is for young people. They have got those teens who don’t want to be treated as kids and require the content that fills this gap. It seems that the content has the edge, just enough in my opinion, though others may disagree.
We can wait for what the world of Netflix looks like under Ted and Greg, there are several things to look forward to. It seems that TV Kids Global had a good write-up on upcoming kids’ content this week. The
As already mentioned, a sequel was recently announced for The Sea Beast, alongside an overall deal with its creator, Chris Williams. They can also look forward to Leo, starring Adam Sandler in November. Add to this 2023 US Pay windows for Minions: The Rise of Gru and Puss in Boots: The Last Wish, and you have a party.
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