In the fiercely competitive streaming landscape, one of the most underappreciated yet powerful weapons for subscriber retention is children’s programming. While headline-grabbing live sports and blockbuster TV series often steal the spotlight for driving short-term subscriber spikes, savvy media giants are doubling down on kids’ content to build sustainable, long-term engagement—and the data backs this up in a big way.
Why Kids’ Shows Are Streaming Gold
Kids’ shows like “CoComelon,” “Bluey,” and “Blippi” are not just cute distractions; they are subscriber magnets with remarkable staying power. Kevin Mayer, co-CEO of Candle Media (owner of Moonbug, which distributes “CoComelon”), nails it: kids watch the same episodes repeatedly, sometimes dozens of times. This repeat viewing behavior drastically reduces churn—the dreaded subscriber loss that can cripple streaming services’ bottom lines. According to Mayer, retaining subscribers is more critical than just acquiring new ones or even increasing revenue per user.
Consider the Australian animated sensation “Bluey,” which amassed over 25 billion minutes of viewing on Disney+ in just the first half of 2025 (Nielsen). This staggering figure highlights a key insight: children’s content delivers consistent, high-volume engagement that other genres struggle to match. Disney’s “Moana” franchise similarly dominates streaming charts, with the sequel pulling in over 7 billion minutes since its March 2025 release.
Implications for Investors
For investors, this trend signals a strategic pivot in content valuation and acquisition. Streaming platforms with rich children’s content libraries—Disney+, Netflix, Paramount+—are better positioned to weather subscriber volatility. For instance, a TiVo report from Q4 2024 revealed that households with children subscribe to an average of 13.6 streaming services—significantly above the 8.2 average for childless households. This means families are more likely to maintain multiple subscriptions, creating a diversified revenue base.
However, the average number of streaming services per household dropped from 11.1 to 9.9 year-over-year, indicating that consumers are pruning services they don’t frequently use. Here, kids’ content acts as a retention anchor. Services without compelling children’s programming risk losing these valuable family subscribers.
The YouTube Factor: Streaming’s Silent Giant
One of the most disruptive forces in this space is YouTube, which now commands the highest TV viewership among streaming platforms, surpassing Netflix and Disney+ with 12.8% of overall streaming on TV screens as of June 2025 (Nielsen). This is a game-changer. YouTube’s dominance stems from its vast, free content ecosystem, especially for kids. Traditional media companies are no longer ignoring YouTube; instead, they are partnering closely with it, creating exclusive content and curated channels to capture younger audiences where they already spend time.
Paramount’s decision to launch the original animated series “Kid Cowboy” exclusively on YouTube exemplifies this shift. This “YouTube-first” strategy is becoming essential for building the next generation of characters and franchises, blending traditional media’s storytelling prowess with digital-native distribution.
The CoComelon Shift: A Case Study in Strategic Licensing
The migration of “CoComelon” from Netflix to Disney+ in 2027 underscores the evolving competitive dynamics in kids’ content licensing. Despite its massive popularity, Netflix’s viewership for “CoComelon” dropped nearly 60% between early 2023 and late 2024, prompting Netflix to let go of the license. Disney’s acquisition aligns with its broader preschool ecosystem strategy, aiming to deepen engagement and retention among young viewers—a critical demographic for long-term subscriber health.
Netflix, meanwhile, is not retreating from kids’ content but pivoting towards digital-native creators like “Ms. Rachel,” whose content has amassed 53 million views in the first half of 2025 on Netflix alone. This highlights a growing trend: streaming platforms are increasingly investing in YouTube-born talent to capture young viewers who are digital natives.
What Should Investors and Advisors Do Differently Now?
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Prioritize Streaming Platforms with Strong Kids’ Content: Investors should favor companies like Disney, Paramount, and Netflix that maintain robust and evolving children’s content libraries. These platforms have a built-in subscriber retention mechanism that can buffer against the industry’s notorious churn.
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Watch YouTube’s Role Closely: YouTube is not just a competitor but a vital partner and content incubator. Companies that innovate with YouTube-first content strategies are likely to create the next big franchises. Investors should monitor media companies’ YouTube engagement metrics as a leading indicator of future streaming success.
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Evaluate Licensing Deals and Content Shifts: The “CoComelon” licensing battle is a bellwether for how valuable kids’ content rights are becoming. Investors should scrutinize upcoming licensing renewals and acquisitions in this space, as these deals can significantly impact subscriber growth and retention.
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Consider Broader Family Viewing Trends: With families subscribing to multiple services, bundling strategies and cross-platform partnerships (e.g., streaming + YouTube + traditional TV) will be key to maximizing lifetime value per household.
Looking Ahead
The streaming wars are entering a phase where content longevity and engagement matter more than ever. Kids’ programming, often overlooked in favor of trendier genres, is proving to be the secret weapon for sustainable growth. As streaming platforms refine their strategies, expect to see more investments in digital-native creators and deeper integration with platforms like YouTube.
For investors, the takeaway is clear: children’s content is not just a niche—it’s a cornerstone of the streaming economy’s future. Keep an eye on evolving content strategies, licensing battles, and cross-platform synergies to identify winners in this rapidly shifting landscape.
Sources:
- Nielsen Streaming Reports, 2025
- TiVo Q4 Video Trends Report, 2024
- CNBC Interviews with Industry Executives
- Candle Media and Moonbug Insights
By focusing on these nuanced trends and actionable insights, Extreme Investor Network delivers the analysis that savvy investors need to stay ahead in the streaming revolution.
Source: Kids content on streaming is king as media companies chase profits