Kids channel

How YouTube’s Largest Kids’ Channel Became a $ 10 Million Business in One Year


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Moonbug Entertainment, the company behind popular children’s YouTube channels Cocomelon and Little Baby Bum, which sold for millions of dollars in 2018, has reported huge financial results.

The company’s accounts were filed with Companies House, the UK business register, days before Christmas, and show a huge increase in the value of its intellectual property, brands and production arms of contents.

Moonbug Entertainment, which employed an average of 80 people in 2019, the year for which the accounts are drawn up – up from 19 in 2018 – runs several companies in the UK, US, Australia, South Africa and the Netherlands . Overall, the group of companies saw the value of its assets increase, but the Moonbug company alone saw the biggest increase.

YouTube: Little Baby Bum

Little Baby Bum collects nursery rhymes and songs for young children, and has become an incredibly valuable asset to Moonbug.

As of early 2019, the company owned intellectual property worth £ 346,258 and its content branch was valued at just under £ 50,000. The company had no trademarks with monetary value.

In 12 months, the value of its intellectual property soared to over £ 9million, while its content arm grew to become a £ 1.1million business itself. An increase in trademark content means it has also increased to £ 172,032.

Overall, the value of the company’s “intangible assets” has increased 25-fold in one year.

How Moonbug developed the Little Baby Bum brand

Cocomelon, which has over 100 million subscribers, is extremely popular with children who enjoy its mix of children’s songs, rhymes and stories. Likewise, Little Baby Bum has taken off with content in a similar vein, reaching nearly 35 million subscribers at the time of writing and only growing.

Moonbug representatives declined repeated requests to comment on this story, but Derek Baird, author of “The Gen Z Frequency,” a book about targeting younger audiences through marketing, who was director of product development at consumption at Disney Interactive, believes the financial figures are a sign of Moonbug’s massive success. “For a new children’s media business, your Achilles heel will always be satisfied,” he says.

“First, you need to create quality content that resonates with kids. Second, if you are successful on the first point, you need to produce enough content to continually feed the content beast. This strategy is based on a company’s willingness to make large, short-term investments in the development and production of content for future distribution, profit and monetization of intellectual property.

All the characters of moonbug cocomelon little baby bum

Ian Shepherd, Founder and CEO of The Social Store, which runs big UK kid-focused YouTubers like Tiana Wilson, agrees Moonbug’s growth is extraordinary. “With a number of the management team coming from Disney, they were one of the first to see the opportunity to create new Disney-style properties from existing YouTube First content,” he said. -he declares.

“They are now leveraging these hugely popular global shows to create what will quickly become very profitable consumer product brands. “

Moonbug has previously licensed the Little Baby Bum brand to produce toys for Little Tikes, and in August 2020 appointed a company to work on licensing deals for clothing, bedding, and traditional and digital publishing – mimicking the rise of Ryan’s World, Ryan Kaji’s YouTube channel, which has become a one-stop shop.

Acquire the YouTube sensation Cocomelon

YouTube cocomelon nursery rhymes and children's songs
YouTube: Cocomelon

Cocomelon is the third most subscribed channel on YouTube, a huge acquisition for Moonbug.

Moonbug’s purchase of Cocomelon in July 2020, the third-largest YouTube channel in terms of subscribers, is also a factor in the company’s extraordinary financial results. A line of toys, costing between $ 5 and $ 20, were selling so quickly that the company that produced them was struggling to replenish stock, according to Tubefilter.

Much of Moonbug Studio’s stratospheric growth in the children’s streaming space can be attributed to its July 2020 acquisition of Cocomelon, which topped 100 million YouTube subscribers and garnered nearly 100 billion dollars. views on the platform, ”Baird said.

And that means that in December 2021, when Moonbug’s 2020 financial results are released, there will likely be an even bigger increase in the value of its intellectual property and brands.

“Over the next year or so, you should expect to see stores full of Cocomelon and Blippi toys and clothing in place of other kids’ IPs who haven’t made the digital switch or have had to. struggling with new content due to covid, ”Shepherd says.

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