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The U.S. Market for Children's Video Products

Children’s video, or kidvid, is a $4.8 billion market pumped by sell-through (as opposed to rental), families’ conversions to DVD, and today’s kids’ remarkable media savvy. Not only are kids aware of every entertainment trend, they have more spending power - and have more spent on them - than any previous generation. When targeting them, it is important to recognize that kids have made the most of parental permissiveness, and could soon start their own country, if not their own planet...

In this latest Packaged Facts report on the kidvid business, The U.S. Market for Children’s Video Products, media execs (or other execs looking to tie in kidvid to food, fast food, personal care, or general merchandise promos) shall find in-depth coverage of historical and projected sales in both sell-through and rental channels; demographic profiles based on Simmons data (including data compiled from surveying kids and teens, ages 6 to 18); and Packaged Facts’ usual thorough analysis of marketplace influences - from the expanding kid population, to video on demand. Competitive strategies of Disney, Fox, Time Warner, Viacom/Nickelodeon, and others are examined. With one hit kidvid title playable to generations of kids, shrewd execs will use this report to make the most of an evergreen audience.

Report Methodology
The information in The U.S. Market for Children’s Video Products is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the video market and consultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. Packaged Facts has derived mass merchandiser sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd. Consumer information was derived from Simmons Market Research Bureau, fall 2004 National Consumer Survey.

What You’ll Get in this Report
The U.S. Market for Children’s Video Products makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective marketers can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that The U.S. Market for Children’s Video Products offers. The report addresses the following segments:

  • The Market (including market size and composition, and projected market growth)
  • The Marketers (including discussions of specific marketer brand and market shares)
  • Competitive Profiles (of the mainstream marketers, specialists and up-and-coming niche players, and analyses of the products they market)
  • Retail Strategies (including mass marketers, rental outlets and mail delivery)
  • The Consumer (who’s buying what, and where)
  • The Products
  • Trends and Opportunities

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll down to see a more detailed outline of the contents of this report.

How You Will Benefit from this Report
If your company is already competing in the children’s video products market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for kid video products, as well as projected sales and trends through 2009. Contributing to that understanding will be a complete analysis of sales data, and a detailed discussion of the consumer for kid video products based on Simmons data.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for kid video products.
  • Research and development professionals stay on top of competitor initiatives and explore demand for children’s video products.
  • Advertising agencies working with clients in the video industry understand the product buyer to develop messages and images that compel consumers to purchase these products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


Chapter 1 Executive Summary

  • The Products
    • Report Covers Children’s Video Rental And Sell-Through

  • New Retail Modes
  • Made-For-Video Titles More Accepted
  • Licenses From Any Media
  • Kidvid’s Border With Family Entertainment Is Hazy
  • The Market
    • Kidvid Breaks $4.8 Billion Mark At Retail In 2004
    • Pop-Savvy Kids, DVD Penetration, Major Releases Are Prime Drivers
    • Sell-Through In Bullish Approach To $4.4 Billion
    • Rental Category Slides To $485 Million
    • Anime Biz Estimated At $512 Million In 2004
    • Projected Sales: Overall Kidvid Market To Reach $7.8 Billion In 2010
    • Projected Sales: Kidvid Sell-Through In Bullish Run To $7.3 Billion In 2010
    • Projected Sales: But Kidvid Rentals To Struggle To $469 Million
    • Table 1-1 U.S Retail Dollar Sales Of Children’s Video And Japanese Anime Products By Sell- Through And Rental Categories, 2002-2010

  • Kid “Communities” Growing Free Of Adult World
  • Kids, An Evergreen Audience
  • Sector Of Kids 7 And Under To Expand
  • Tweens To Decline In Number
  • Teens To Increase
  • Table 1-2 Projected U.S. Population, By Age Bracket, 2005-2020 (In Thousands)
  • Kids More Pop And Media-Savvy, Thus More Targetable
  • DVD Penetration Rockets, Brings Higher Price-Points
  • VOD A Genuine Threat To Some Marketers

  • The Marketers
    • Principal Marketers May Be Distributors, Producers, Or
    • Licensors
    • Lots Of Vertical Integration
    • All Home Video: Time Warner, Sony, Disney Are Leading Triumvirate
    • Table 1-3 Share Of U.S. Retail Dollar Sales Of DVD And VHS Homevideo Products* (Rental And Sell-Through), By Marketer, 2004
    • Shrek 2, Brother Bear, Lion King 1½ Are 2004’s Top Kidvid Titles

  • Product And Ad Trends
    • Consumers Expect Ancillary Material On Dvds
    • Including Games As Add-Ons
    • Entire Season Of Bart Or Spongebob In One Unit
    • More Titles For Toddlers And Babies
    • Ad Positioning: What You Saw Is What You Get
    • Ad Positioning: Educational Value
    • Ad Positioning: Material Value
    • Ad Positioning: For Print, Kidvid Marketers Prefer Parents’ Mags
    • Anime Ads Relegated To Specialty Magazines
    • Cross-Merchandising Kidvid With Toys, Cds, Premiums, Etc.

  • Distribution And Retail
    • Number Of Video Stores Declining
    • An End To Screeners?
    • “The Video Store Is Dead”: Fingers Point To Blockbuster
    • Movie Gallery Wins Fight To Take Over Hollywood Video Chain

  • The Children’s Video Renter-Household
    • Six Million VHS Children’s Video Renter-Households
    • Over 4.5 Million DVD Children’s Video Renter-Households
    • Rental Characterized By Affluence, Families, Midwestern Region
    • Table 1-4 Demographic Characteristics Favoring Household Rental Of Children’s Video, By DVD Or VHS Formats, 2004 (Households, In Recent 12-Month Period)
    • The Children’s Video Purchaser-Household
    • Nearly 8.7 Million VHS Children’s Video Buyer-Households
    • Over 7.5 Million DVD Children’s Video Buyer-Households
    • Buyer-Households Marked By Affluence, Families, Midwestern Region
    • Table 1-5 Demographic Characteristic Favoring Household Purchase Of Children’s Video, By DVD Or VHS Formats, 2004 (Households, In Recent 12-Month Period)

  • Conclusions
    • Executive Focus: Anime
    • Japanese Anime For Both Kids And Adults
    • Anime Biz Estimated At $512 Million In 2004
    • Anime’s Cult Appeal Dovetails With Video Game Phenomenon
    • Anime Ads Relegated To Specialty Magazines
    • A Sampling Of New Anime Titles
    • Table 1A-1 Selected New Introductions Of Japanese-Style Anime, By Marketer And Title, 2004-2005

    Chapter 2 The Products

    • Key Points
    • Introduction
      • Report Covers Children’s Video Rental And Sell-Through
      • New Retail Modes
      • Clarification Of Terms
      • Methodology

    • Children’s Video Glossary
      • Anime
      • Blu-Ray
      • Cartoon
      • CGI
      • DVD-R
      • DVD-RW
      • Evergreen
      • EZ-D
      • Feature
      • File-Sharing
      • Peer-To-Peer (P2P) Network
      • Revenue Sharing
      • Screener
      • Street Date
      • SVOD
      • VOD

    • The Products
      • Children’s Video Both Rented And Sold
      • Children’s Video Both Animation And Live Action
      • Sources Of Pre-Produced Titles
      • Animated Theatrical Product
      • Television Product
      • Product In The Public Domain
      • Stages Of Release Of Theatrical/TV Product
      • Made-For-Video Titles More Accepted
      • Licenses From Any Media
      • Titles Geared For Specific Age Groups
      • Japanese Anime For Both Kids And Adults
      • Children’s Video Formats/Delivery Modes
        • DVD Vs. VHS
        • EZ-D, A Disposable Disc
        • Other Formats Virtually Dead
        • Video On Demand (VOD)
        • Website Downloads

      • Typical Running Times
      • Ancillary Materials On DVD
      • Children’s Video/Family Entertainment Delineation Is Hazy
      • Ratings Systems
      • MPAA Ratings For Theatrical Product
        • Ratings For Television Product
        • The V-Chip
        • Watchdog Groups

    Chapter 3 The Market

    • Key Points
    • Market Size And Growth
    • Children’s Video Breaks $4.8 Billion Mark At Retail In 2004
    • Pop-Savvy Kids, DVD Penetration, Major Releases Are Prime Drivers
    • Table 3-1 U.S. Retail Dollar Sales Of Children’s Video And Japanese Anime Products, By Sell-Through And Rental Categories, 2002-2004
    • Sell-Through In Bullish Approach To $4.4 Billion
    • Rental Category Slides To $485 Million
    • Sell-Through Keeps Gaining Ground
    • Table 3-2 Share Of U.S Retail Dollar Sales Of Children’s Video And Japanese Anime Products, By Sell-Through And Rental Categories, 2002-2004
    • Add A Portion To Cover Used Video Purchases
    • Children’s Video Unit Volume Over 200 Million
    • DVD Now Overpowers VHS
    • Children’s Fare Accounts For 1 In 5 Home Video Dollars
    • Table 3-3 Share Of U.S Retail Dollar Sales Of Homevideo Products (Both Rental And Sell-Through), By Genre, 2004
    • Anime Biz Estimated At $512 Million In 2004
    • Children’s Video Within The Larger Home Video Context
    • Regionality: Midwest Most Receptive To Both Purchase And Rental
    • Table 3-4 Regionality Of U.S. Households’ Retail Purchase Of Children’s Video And Japanese Anime Products, By VHS And DVD Formats, 2004 Table 3-5 Regionality Of U.S. Households; Rental Of Children’s Video And Japanese Anime Products, By VHS And DVD Formats, 2004
    • Factors In Growth
      • Kid “Communities” Growing Free Of Adult World
      • Kids, An Evergreen Audience
      • Sector Of Kids 7 And Under To Expand
      • Tweens To Decline In Number
      • Is Kid Spending Power Relevant?
      • Table 3-6 Projected U.S. Population, By Age Bracket, 2005-2020 (In Thousands)
      • Kids Watch Titles Over And Over And Over And Over
      • Kids More Pop And Media-Savvy, Thus More Targetable
      • DVD Penetration Rockets, Brings Higher Price-Points
      • The Babysitting Factor: Let ‘Em Watch Video
      • DVD Players In Cars
      • Wireless Access To Children’s Video
      • Video Hardware For Kids
      • VOD A Genuine Threat To Some Marketers Piracy

    • Projected Sales
      • Overall Children’s Video Market To Reach $7.8 Billion In 2010
      • Children’s Video Sell-Through In Bullish Run To $7.3 Billion
      • But Children’s Video Rentals To Struggle To $469 Million
      • Table 3-7 Projected U.S. Retail Dollar Sales Of Children’s Video And Japanese Anime Products, By Sell-Through And Rental Categories, 2002-2004 (In Millions)

    Chapter 4 The Marketers

    • Key Points
    • Principal Marketers May Be Distributors, Producers, Or Licensors
    • Lots Of Vertical Integration
    • Hundreds Of Children’s Video Marketers
    • Most Players Are Communications Industry Specialists
    • Table Of Children’s Video Marketers
    • Table 4-1 Leading Marketers Of Children’s Homevideo Products And/Or Japanese Anime, And Their Representative Titles, 2005
    • Children’s Video Market Share
      • Special Note: Sources Disagree On Children’s Video
      • Rankings
      • All Home Video: Time Warner, Sony, Disney Are Leading Triumvirate
      • Table 4-2 Share Of U.S. Retail Dollar Sales Of DVD And VHS Homevideo Products* (Both Rental And Sell-Through), By Marketer, 2004
      • Shrek 2, Brother Bear, Lion King 1½ Are 2004’s Top Children’s
      • Video Titles
      • Disney Leads In Made-For-Videos
      • Table 4-3 Share Of U.S. Retail Dollar Sales Of Children’s Dvds (Both Rental And Sell-Through), By Title, 2004 (Dollars In Millions)

    • Competitive Profile: The Walt Disney Co.
      • Sales Of $31 Billion In Fiscal 2004
      • House Of Mouse A Communications Giant
      • “Disney” Synonymous With “Animated Feature”
      • Disney’s Lucrative Pixar Connection May Be Unplugged

    • Competitive Profile: General Electric Company/NBC Universal
      • GE Has Revenues Of $152 Billion; NBC Universal Contributes
      • $15 Billion
      • NBC Universal Can Say, “Now I Am Complete”
      • Universal A Producer Of 50 Made-For-Video Children’s Video Features

    • Competitive Profile: HIT Entertainment PLC
      • Turnover Of £148 Million In Fiscal 2004
      • HIT Builds Pre-School Audience With Strong Character-Brands
      • Becoming A Mini-Disney: HIT Vertically Integrates

    • Competitive Profile: Lions Gate Entertainment Corp.
      • Revenues Of $385 Million In Fiscal 2004
      • Expanding Children’s Video Interests Via Licenses And Partnerships
      • Selling Downloads Via Cinemanow

    • Competitive Profile: News Corp./Fox Entertainment Group
      • Fox Revenues Approach $12.2 Billion In Fiscal 2004
      • Fox’s Bad Boy Reputation Exemplified By Bart…And Babies?!
      • Vertical Involvements Leverage Fox In Children’s Video

    • Competitive Profile: Sony Corporation/Sony Wonder
      • Sony Posts Sales Of $72 Billion In Fiscal 2003
      • Entertainment Presence Grew Out Of Electronics Hardware
      • For Younger Kids, Sony Wonder
      • Sony Acquires MGM

    • Competitive Profile: Time Warner, Inc./Warner Home Video
      • Revenues Of Over $42 Billion In 2004
      • Time Warner Leads In Overall U.S. Home Video Sales
      • A World Of Hard Infrastructure; A Cornucopia Of Children’s Video
      • Content

    • Competitive Profile: Viacom, Inc.
      • Revenues Of $16.2 Billion During First Three Quarters Of 2004
      • Viacom’s The King Of TV-Sourced Children’s Video
      • Nickelodeon The Go-To Network For Reaching Kids And Parents

    • Marketing And Product Trends
      • Made-For-Video Now Accepted As Legit
      • Consumers Expect Ancillary Material On Dvds
      • ...Including Games
      • A Whole Season Of Bart Or Spongebob In One Unit
      • More Titles For Toddlers And Babies
      • Table 4-4
      • Selected New Introductions Of Children’s Video Products And/Or Japanese Anime, By Marketer And Title 2004-2006

    • Consumer Advertising Expenditures
      • Special Note About Children’s Video Media Data
      • Finding Nemo: $30 Million
      • The Lion King: $22.5 Million
      • 101 Dalmatians II: $11 Million
      • Jungle Book 2: $7 Million
      • Piglet’s Big Movie: $6.1 Million
      • Stitch! The Movie: $6 Million
      • Land Before Time X: $4.4 Million
      • Beauty & The Beast: The Enchanted Christmas: $2.9 Million
      • Spirited Away: $1.6 Million
      • Six Important Children’s Videos Supported With Buys Of Less Than
      • $1 Million Each

    • Consumer Advertising Positioning
      • Theatrical And TV-Sourced Titles: What You Saw Is What You Get
      • Positioning Children’s Video On Educational Value
      • Positioning On Material Value
      • For Print, Children’s Video Marketers Prefer Parent Magazines
      • Anime Ads Relegated To Specialty Magazines

    • Consumer Promotions
      • Kidvid Coupon Tie-Ins
      • Cross-Merchandising Children’s Video With Toys, Cds, Premiums, Etc.
      • Ancillary Material On Dvds

    Chapter 5 Distribution And Retail

    • Key Points
    • The Product Path
    • Outside Programming
    • Wholesaling Vs. Revenue Sharing
    • Number Of Video Stores Declining
    • An End To Screeners?
    • Sharp Drop In Rental Prices When Titles Are Moved From
    • “New” Section
    • “The Video Store Is Dead”: Fingers Point To Blockbuster
    • Movie Gallery Wins Fight To Take Over Hollywood Video Chain
    • Retail Focus: Blockbuster, Inc.
      • Blockbuster Aggresses Online, Too

    • Retail Focus: Netflix, Inc.
      • Revenues Rocket To $506 Million In 2004
      • Good Selection, Convenience, No Matter Where You Live
      • Netflix Partnering With Tivo?

    Chapter 6 The Consumer

    • Key Points
    • About Simmons Data
    • DVD Versus VCR Penetration
    • Table 6-1 Demographic Characteristics Favoring Household Ownership Of DVD Players And Vcrs, 2004 (Households, In Recent 12-Month Period)
    • America’s Children
      • A Community Of 80 Million
      • Previously Neglected Under-7 Audience Is 31 Million Strong
      • Teens/Tweens Number 37 Million
      • Table 6-2 Projected U.S. Population, By Age Bracket, 2005-2020 (In Thousands)
      • Hispanics Now Leading Kid Minority Table 6-3 Projected U.S. Teen (Aged 15-18) And Tween Population (8-14),
      • By Race And Hispanic Origin, 2005-2010 (In Thousands)
      • Kid Spending Power

    • The Kidvid Renter-Household
      • Six Million VHS Kidvid Renter-Households Over 4.5 Million DVD Kidvid Renter-Households
      • Rental Characterized By Affluence, Families, Midwestern Region
      • Table 6-4 Demographic Characteristics Favoring Household Rental Of Children's Video, By DVD Or VHS Formats, 2004 (Households, In Recent 12-Month Period)

    • The Kidvid Purchaser-Household
      • Nearly 8.7 Million VHS Kidvid Buyer-Households
      • Over 7.5 Million DVD Kidvid Buyer-Households
      • Buyer-Households Marked By Affluence, Families, Midwestern Region
      • Table 6-5 Demographic Characteristics Favoring Household Purchase Of Children's Video, By DVD Or VHS Formats, 2004 (Households, In Recent 12-Month Period)

    • Simmons Surveys Kids On Kidvid
      • Animation Is Kids’ Third Favorite Genre
      • Table 6-6 Numbers Of Children Viewing Or Intending To View Rented Videos, By Five Genres, 2004 (Children Aged 6-11, In Thousands; Recent 12-Month Period)
      • Table 6-7 Numbers Of Children Viewing Or Intending To View Purchased Videos, By Five Genres, 2004 (Children Aged 6-11, In Thousands; Recent 12-Month Period)
      • Rental By Genre: Kids Aged 10-11, “Other” Races Stand Out
      • Table 6-8a Children's Own Demographic Characteristics Favoring Rental** Of Video Titles, By Five Genres (Children Aged 6-11, In Recent 12-Month Period)
      • Table 6-8 (Continued) Children's Own Demographic Characteristics Favoring Rental Of Video Titles, By Five Genres (Children Aged 6-11, In Recent 12-Month Period)
      • Sell-Through Purchasing By Genre: Kids Aged 10-11, Girls, African-Americans Are Featured
      • Table 6-9 Children's Own Demographic Characteristics Favoring Purchase** Of Video Titles, By Five Genres (Children Aged 6-11, In Recent 12-Month Period)
      • Table 6-9 (Continued) Children's Own Demographic Characteristics Favoring Purchase Of Video Titles, By Five Genres (Children Aged 6-11, In Recent 12-Month Period)
      • Numbers Of Kids Viewing Four Specific Titles
      • Table 6-10 Numbers Of Children Viewing Or Intending To View Rented And Purchased Videos, By Four Titles, 2004 (Children Aged 6-11, In Thousands; Recent 12-Month Period)
      • Demographic Characteristics Favoring Rental Of Four Titles
      • Table 6-11 Children's Own Demographic Characteristics Favoring Rental** Of Four Video Titles, 2004 (Children Aged 6-11, In Recent 12-Month Period)
      • Demographic Characteristics Favoring Purchase Of Four Titles
      • Table 6-12 Children's Own Demographic Characteristics Favoring Purchase** Of Four Video Titles, 2004 (Children Aged 6-11, In Recent 12-Month Period)

    • Numbers Of Households Patronizing U.S. Video Retailers
      • Wal-Mart Leads Sell-Through, Blockbuster Leads Rental Many Americans Loyal To One Video Retailer
      • Table 6-13 Numbers Of Households Purchasing Or Renting Any Video* In VHS Format, Per Leading Retail Outlets, 2004 (Households, In Recent 12-Month Period)
      • Table 6-14 Numbers Of Households Purchasing Or Renting Any Video* In DVD Format, Per Leading Retail Outlets, 2004 (Households, In Recent 12-Month Period)

    Chapter 7 Trends And Opportunities

    • Key Points
    • Verticalization, Licensing Now Fundamental To Children’s Video
    • Competition
    • The Video Game Connection, Or Interactivity - It’s Baaaack!
    • Anime’s Cult Appeal Dovetails With Video Game Phenomenon
    • Advice: Explore Youngest And Oldest Kid Age Brackets
    • Bigger Investments Warranted
    • Be Ready With Flexible Distribution Templates For Coming Years

    Appendix: Addresses of Selected Marketers

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