The Children's Video Market

Jun 1, 1997
150 Pages - Pub ID: LA475
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  1. Executive Summary
    The Products
    • Scope of Report
    • Two Basic Descriptors: Animation and Live Action

    The Market
    • Bullish Kidvid Breaks $3 Billion Mark in 1996
    • Kidvid Sales to Surpass $4.2 Billion in 2001
    • Table 1-1: Size and Growth of U.S. Children's Video Market: By Channel, 1992-2000 (retail dollars); Sell-through, Rental, Total
    • Popularity of Sell-Through Is Keystone of Growth
    • Kid Population to Stabilize, But Other Trends Will Sustain Kidvid Growth

    The Marketers
    • Disney Label the Untouchable Leader
    • Table 1-2: Leading U.S. Children's Video Labels: By Rank, 1995 and 1996 (listing)
    • Some Marketer Consolidation—Yet Major Players Proliferate
    • Kidvid Branding Is Here to Stay
    • Kidvid Marketers Spend About $75 Million to Advertise in 1996
    • A Range of Promotions Are Used by Themselves or in Cross-Promotions

    Distribution and Retail
    • Direct Shipment Increasingly Used
    • Relatively High Margins on Kidvid Sell-Through
    • Discounters Rule Kidvid Sell-Through, But It Is Video Stores for Rental
    • Figure 1-1: Share of the U.S. Children's Home Video Market: Sell-Through and Rental by Retail Outlet, 1996 (percent)

    The Consumer
    • Adult Purchasers of Kidvid Nearly Double, to 37 Million
    • Middle-Class or More Affluent Are Likeliest to Favor Kidvid Purchase
    • Number of Kidvid Renters Over 24 Million
    • Kidvid Renter Mirrors Sell-Through Purchaser

    Scope and Methodology
    • Scope of Report
    • Methodology
  2. The Products
    Introduction
    • Scope of Report
    • The Children's Video Market Is Volatile, Changing, and Yet Dependable
    • The Stages of Release
    • Children's Video Within the Overall Home Video Market
    • Distribution a Key Feature of This Market

    The Products
    • Two Basic Descriptors: Animation and Live Action
    • Types of Content
    • More Titles Produced Expressly for Children's Video
    • Sources of Preproduced Titles
    • Animated Theatrical Product
    • Television Material
    • Properties That Serve as the Bases for Adaptations
    • Public Domain Theatrical Titles
    • Titles Often Geared to Specific Age Groups
    • Children's Video Formats
    • VHS and Beta Videotape Cassettes
    • Laser Discs
    • The DVD: Just Now Being Introduced
    • Other Potential Formats Fall by the Wayside
    • Typical Running Times
    • Packaging and Labeling Are Colorful
    • Special Kidvid Packagings
    • Children's Titles and Family Entertainment

    Government, Industry, and Popular Regulation
    • The FCC Does Not Directly Regulate Children's Video Content
    • Television Rules Affect Children's Video Running Times
    • The MPAA Rating System for Theatrical Product
    • Watchdog Groups Offer Seals of Approval
    • The V-Chip
    • The New TV Content-Ratings System
    • Antipiracy Enforcement Is Difficult
  3. The Market
    Market Size and Growth
    • Bullish Kidvid Breaks $3 Billion Mark in 1996
    • Sell-Through Alone Stands at $2.6 Billion
    • Rental Channel, Valued at $435 Million, Makes Slow Progress
    • Popularity of Sell-Through Is Keystone of Growth
    • Kidvid Maintains Itself as Important Home Video Category
    • Table 3-1: Size and Growth of the U.S. Children's Home Video Market, 1992-1996 (Retail Dollar Sales): Sell-Through, Rental, and Overall Market

    Factors in Future Growth
    • Kid Population to Stabilize, But Other Trends Will Sustain Kidvid Growth
    • Lots and Lots More Grandparents to Buy Gifts
    • Table 3-2: U.S. Population Projections, By Age Group, 1997-2007 (numbers): Under 5, 5-14, 15-19, 20-29, 30-49, 50-64, 65+, All Ages
    • VCR Penetration Still Improving
    • Kidvid Titles Are Evergreen
    • Americans Have Developed Keener Appreciation of All Kids' Media
    • Interdependency of Media to Become the Norm
    • Kidvid a Way to Control What Children Watch
    • Repeatability Makes Video the "Ultimate Babysitter"
    • Sell-Through Targeted by Broader Spectrum of Retailers
    • Theatrically-Sourced Mega-Releases Each and Every Year
    • Mainstream Promos, Tie-Ins, Increasingly Taken for Granted
    • Kidvid Will Never Be Harmed by New Technologies
    • DVD Will Provide Mounting Stimulus
    • Interactive Media Shall Coexist With Kidvid
    • VOD Still a Far-Away Prospect—And One With Little Projected Impact
    • 500 Channels Will Just Not Matter
    • DSS' 150 Channels Are Greater Threat Than Cable
    • The Internet Just Another Outlet

    Projected Sales
    • Kidvid Sales to Surpass $4.2 Billion in 2001
    • Sell-Through to Approach $3.8 Billion
    • Rental Sales to Struggle Toward $500 Million
    • Table 3-3: Projected Size and Growth of the U.S. Children's Home Video Market, 1996-2001 (Retail Dollar Sales): Sell-Through, Rental, and Overall Market

    Market Composition: The Products
    • Kidvid Sell-Through Towers Over Rental
    • Animation Outsells Live Action
    • VHS Format Accounts for Most Sales

    Market Composition: By Outlet
    • Discounters Rule Kidvid Sell-Through, But Other Outlets Hold On
    • Video Stores Control Rental Channel
    • Table 3-4: Share of the U.S. Children's Home Video Sell-Through and Rental Market: By Retail Outlet, 1993-1996 (percent): Discounters, Drugstores, Grocery, Music stores, Video stores, Other

    Market Composition: Seasonality
    • Holiday Season and Harsh Weather Are Best Times for Kidvid Sell-Through
    • For Kidvid Rentals, Business Improves When Weather Is Severest and During Summer Vacation
    • Holiday Sell-Through Boom Hurts Rental Channel
    • Olympics Hurts Rental Turnover

    Market Composition: Regionality
    • Special Note on Regional Data
    • Little Regional Variation in Per Capita Kidvid Sell-Through
    • Midwest Definitely Best Region for Kidvid Rental
    • Table 3-5: Regionality of U.S. Children's Videocassette Use: By Sell-Through and Rental, 1996 (percent and index): Adult Use by Sell-Through and Rental Retail Channels; Midwest, West, Northeast, South
  4. The Marketers
    The Marketers
    • Special Use of the Term "Marketer"
    • At Least 130 Kidvid Marketers
    • Most Companies Are Communications Industry Specialists
    • Many Marketers Are Producers, Distributors¾or Both
    • Actual Marketers Further Obscured by Licensing Agreements, Joint Ventures, and Fame of Producers
    • Table of Leading Kidvid Marketers
    • Table 4-1: Leading U.S. Children's Video Marketers and Representative Products, 1996 (listing)

    Leading Labels
    • Disney Label the Untouchable Leader
    • Table 4-2: Leading U.S. Children's Video Labels: By Rank, 1995 and 1996 (listing)
    • Buena Vista (That's Disney Again) Is Mightiest Distribution Label
    • Table 4-3: Leading U.S. Children's Video Distribution Labels: By Rank, 1995 and 1996 (listing)

    Leading Titles
    • Disney's Cinderella, Lion King, Pocahontas, and The Aristocats Are Top Kidvids in 1996
    • Table 4-4: Best-Selling U.S. Children's Video Titles: By Rank, 1995 and 1996 (listing)
    • Disney Titles Also Command Kidvid on Laserdiscs

    The Competitive Situation
    • Disney Refocuses Production
    • Kidvid Extends Theatrically-Originated Product
    • Disney Regains Primetime TV Slot
    • Disney Signs Pixar to Do Toy Story Sequel
    • Disney's ABC Video Teams With Toymaker Hasbro—For Production
    • Seagram/Universal's "Pullthrough Marketing"
    • Warner Home Video Absorbs Turner Home Video
    • Time Warner Founds HBO Kids, Targets Narrow Age Group
    • Viacom Builds TV Audience for Sunday Morning Product on UPN
    • Viacom Shifts Marketing of Nickelodeon Kidvid From Sony to Paramount
    • Fox Takes Retail-Driven Approach
    • How Fox Achieves "Movie Numbers" for Goosebumps
    • CBS/Fox Video's British Connection
    • LIVE, With Easter Obsession, Exemplifies Trend to Holiday Catalogs
    • MGM/UA Resurrects Pee Wee's Playhouse
    • McDonald's Mercifully Drops Video Marketing
    • Image Entertainment Strongest Force in Laser Discs—a Segment Ruled by Distributors

    Marketing Trends
    • Some Marketer Consolidation—Yet Major Players Proliferate
    • Kidvid Branding Is Here to Stay
    • An Extraordinary Emphasis on Promotions
    • Made-for-Video/Direct-to-Video Animated Features
    • TV Premieres Important in Kidvid
    • Marketing With the Anticipation of Returns
    • Marketing Via the Internet

    Product Trends
    • Lots More of What Worked Before
    • Products Spun Off From Other Media
    • Marketers Cranking Out Made-for-Video Animated Features
    • Holiday-Oriented Lines
    • "Cool" Animation Styles—and Content More Suitable for Adults
    • Table 4-5: Selected U.S. Children's Video Product Introductions, 1995-1997

    Consumer Advertising Expenditures
    • Kidvid Marketers Spend About $75 Million to Advertise in 1996
    • Five Spenders of $1 Million or More in 1996
    • However, Much Kidvid Expenditure Is Hidden
    • Marketers' Budgets May Vary Considerably From Year to Year
    • Disney, the Biggest Advertiser, Spends $58 Million
    • Seagram Invests $6.5 Million in Ads
    • News Corp. Budgets $5 Million
    • Lyons and Viacom Each Spend About $1 Million
    • Time Warner and Sony Each Spend Well Under $1 Million Range
    • "Other" Marketers' Budget Even Less

    Consumer Advertising Positionings
    • Some Common Kidvid Positionings
    • Ads Target Parents, Kids, or Both
    • Fun, Excitement, Adventure, Etc.
    • Characters
    • Teaching Good Values/Life Lessons
    • "Now You Can Own..."
    • Star Power
    • Occasionally, Some Positioning on Brands
    • Scary Stuff
    • Advertising Examples

    Consumer Promotions
    • A Range of Promotions Are Used by Themselves or in Cross-Promotions
    • Multiple Tie-Ins
    • Premiums, In- and Out-of-Pack
    • Marketers Cross-Promote Their Own Titles With One Another
    • Mall Tours
    • Promotional Advertising Examples

    Trade Advertising
    • Trade Advertising Extremely Important in Kidvid
  5. Distribution And Retail
    Distribution
    • The Word "Distributor" Often Means "Marketer"
    • Much Vertical Integration
    • Release Schedules Now More Flexible
    • Many Distributors Handle Wide Range of Entertainment Products
    • The Path from Producer to Consumer
    • Direct Shipment Increasingly Used
    • Rack-Jobbers and Concessionaires
    • Outside Programs
    • Returns Overview
    • Wal-Mart and Blockbuster Demand Direct Shipments

    At the Retail Level
    • Perhaps 175,000 Outlets
    • Relatively High Margins on Kidvid Sell-Through
    • Marketers' Displays and Point-of-Purchase Materials
    • EDI Used by Retailers Ordering Direct
    • Retailers Using the Internet to Direct-Order
    • Marketers Trying to Enforce MAPs and Street Dates
    • Retailers Prepare for Christmas Starting in August
    • Retailers Using Free Magazines, Cyberspace to Build Customer Loyalty
    • For Rentals, Fridays and Saturdays Busiest

    At the Retail Level: Discounters
    • A New Discounter Department: Kids' Media
    • Loss Leaders Priced Below the MAP
    • Marketers' Rebates Give Appearance of Deep-Discounting
    • Discounters Get Assistance with Home Video Departments
    • Best Buy the Loss-Leader King, at $1.99

    At The Retail Level: Video Specialty Stores
    • At Least 35,000-40,000 Video Stores
    • In 1996, Public Video Chains Experience Growing Pains
    • To Compete, Smaller Specialty Stores Boost Rental Assortments
    • Table 5-1: Home Video Stores' Rental Inventories: By Store Size, 1994 and 1995 (number) Small (2,000 or less), Medium (2,000—4,999), Large (5,000—7,499), Superstores (7,500 or more), Average
    • But Sell-Through Stocks Have Plateaued
    • Specialty Retailers' Profits Shrink, Despite Greater Revenue
    • Typical Video Store Depends on Rental Business
    • Table 5-2: Share of Home Video Specialty Retail Sales: By Source, 1995 (percent) Videocassette rentals, Late fees, Video game rentals, Videocassette sales, Food sales, Beverage Sales, Blank tape sales, Other
    • Kidvid Accounts for Almost 10% of Video Store Assortment
    • Kidvid Ranks Fifth in Rental Turnover
    • Table 5-3: Share of Home Video Specialty Stores' Rental Inventory and Turns: By Genre, 1996 (percent) Action/Adventure, Comedy, Drama, Children's, Horror, Adult, Science fiction, Mystery/Suspense, Western, Erotic thriller, Classic, Foreign language, Special interest, Exercise, Other
    • Specialty Retailers Still Do Not Trust Indie Product
    • Table 5-4: Intent to Purchase Independent Home Video Product if Major Hollywood Studios Cut Back Release Schedules, 1996 (percent) Same, Increase, Decrease, Do not know
    • A Quarter of Video Stores Will Stock DVD—At Least Initially

    At the Retail Level: Supermarkets
    • BlowOut Video, a Major Concessionaire, Stresses Grocery Outlets
  6. The Consumer
    The Consumer: America's Children
    • A Potential Audience of 58 Million Kids
    • Kid Population to Peak After Turn of Century
    • Table 6-1: U.S. Population Projections: By Age Group, 1997-2007 (number and percent): Under 5, 5-14, 15-19, 20+
    • Boys Continue to Outnumber Girls
    • Table 6-2: U.S. Children Ages From Infancy to 14: By Age and Gender, 1997 (number and percent): Under 5, 5-9, 10-14; Boys, Girls
    • Diversity of Kids Offers Opportunities
    • Three Quarters of Kid Population Is White
    • Table 6-3: U.S. Children Ages From Infancy to 14: By Race and Age, 1997 (number and percent): Under 5, 5-9, 10-14; White, African American, Asians*, Native Americans**
    • African American and Asian Kids to Expand Population Shares
    • Table 6-4: U.S. Children Ages From Infancy to 14: Share by Race, 1997 and 2002 (percent): White, African American, Asian*, Native American**
    • Almost 9 Million Kids of Hispanic Origin Comprise a Rapidly Expanding Sector
    • Table 6-5: U.S. Children of Hispanic Origin*: By Age Bracket, 1997 and 2002 (number and percent): Under 5, 5-9, 10-14

    The Adult Sell-Through Purchaser
    • Adult Purchasers of Kidvid Nearly Double, to 37 Million
    • But Women Are Still the Primary Purchasers
    • Presence of Children Ages Infancy Through 12 an Obvious Key Factor
    • Table 6-6: U.S. Adult Purchase of Children's Video: By Household Presence of Children, 1996 (percent and index): No child, age under 2, 2-5, 6-11, 12-17
    • Middle-Class or More Affluent Are Likeliest to Favor Kidvid Purchase
    • Table 6-7: U.S. Adult Purchase of Children's Video: By Level of Education, 1996 (percent and index): College graduate, Attended college, High school graduate, Did not graduate high school
    • Table 6-8: U.S. Adult Purchase of Children's Video, By Household Income, 1996 (Adults): $30,000 or more, $20,000-$29,999, $10,000-$19,999, under $10,000
    • Table 6-9: U.S. Adult Purchase of Children's Video: By Occupational Status, 1996 (percent and index): White collar, Blue collar, Not employed
    • Adults 25-44 Are Main Purchasers
    • Table 6-10: U.S. Adult Purchase of Children's Video: By Age, 1996 (percent and index): 18-24, 25-44, 45-54, 55-64, 65+
    • No Particular Census Region Favors Purchase
    • Table 6-11: U.S. Adult Purchase of Children's Video: By Census Region, 1996 (percent and index): Midwest, West, Northeast, South

    The Adult Kidvid Renter
    • Number of Kidvid Renters Leaps to Over 24 Million
    • Female Renters Outnumber Male
    • Kidvid Renter Mirrors Sell-Through Purchaser
    • Kids in Household Are Biggest Factor in Rental
    • Table 6-12: U.S. Adult Rental of Children's Video: By Household Presence of Children, 1996 (percent and index): No child; age under 2, 2-5, 6-11, 12-17
    • Renter Profile Skews Middle Class/Affluent
    • Table 6-13: U.S. Adult Rental of Children's Video: By Level of Education, 1996 (percent and index): College graduate, Attended college, High school graduate, Did not graduate high school
    • Table 6-14: U.S. Adult Rental of Children's Video: By Occupational Status, 1996 (percent and index): White collar, Blue collar, Not employed
    • Table 6-15: U.S. Adult Rental of Children's Video: By Household Income, 1996 (percent and index): $30,000 or more, $20,000-$29,999, $10,000-$19,999, Under $10,000
    • The 25-44 Bracket Stands Out in Kidvid Rental
    • Table 6-16: U.S. Adult Rental of Children's Video: By Age, 1996 (percent and age): 18-24, 25-44, 45-54, 55-64, 65+
    • Midwesterners Have Strongest Tendency to Rent
    • Table 6-17: U.S. Adult Rental of Children's Video: By Census Region, 1996 (percent and index): Midwest, West, Northeast, South
    • Table 6-18: Demographic Characteristics Favoring Adult Sell- Through Purchase and Rental of Children's Video, 1996 (listing): Sex, age, education, employment, occupation, family status, region, locality, race, household income, household size, children in household (age)

    Appendix I: Glossary
    Appendix II: Company Profiles
    The Walt Disney Company App. II-2
    • In Two-Year Period, Disney Sales Double to $21 Billion App. II-2
    • Disney's Redefined Three Business Segments App. II-2
    • Creative Content App. II-2
    • Broadcasting App. II-3
    • Theme Parks and Resorts App. II-3
    • Some of Disney's Wealth of Properties App. II-3

    The News Corporation, Ltd. App. II-5
    • Global Revenues of $6.8 Billion in Fiscal 1996 App. II-5
    • The Media Giant's Six Business Segments App. II-5
    • Television App. II-5
    • Filmed Entertainment App. II-6
    • Newspapers App. II-6
    • Magazines/Inserts App. II-6
    • Books App. II-6
    • Other App. II-6
    • News Corporation Film, TV, Home Video Product App. II-6

    The Seagram Company, Ltd. (Universal Studios, Inc.) App. II-8
    • Seagram to Post Sales of $12 Billion for Fiscal 1997 App. II-8
    • Two Segments: Beverages and Entertainment App. II-8
    • Beverages App. II-8
    • Entertainment App. II-9
    • Recreation App. II-9
    • Other App. II-9
    • Seagram Sells Off Publishing Division App. II-9
    • Seagram Beverage Brands App. II-10
    • Seagram Entertainment Properties App. II-10

    Sony Corporation App. II-11
    • Sales Approach $46 Billion in Fiscal 1997 App. II-11
    • Sony's U.S. Subsidiaries Organized into Two Main Segments App. II-11
    • Sony's Entertainment Properties App. II-12

    Time Warner, Inc. App. II-13
    • Revenues Continue Climb to $21 Billion in 1996 App. II-13
    • Two Business Groupings, Five Segments App. II-13
    • Time Warner Division App. II-13
    • The Entertainment Group App. II-14
    • Turner Acquisition Approved by Stockholders App. II-15
    • Like Disney, Time Warner Has Core Stable of Characters, Works App. II-15
    • Other Properties and Artists App. II-16

    Viacom, Inc. App. II-17
    • Revenues of $12.1 Billion in 1996 App. II-17
    • Powerhouse Viacom Defines Four Business Segments App. II-17
    • Video and Music/Theme Parks App. II-17
    • Entertainment App. II-17
    • Networks and Broadcasting App. II-18
    • Publishing App. II-18
    • Viacom a Busy Acquirer/Divestor App. II-18
    • Viacom's Children's Video Equities App. II-19

    Appendix III: Consumer Ads And Promotions
    Appendix IV: Trade Ads
    Appendix V: Addresses Of Selected Marketers And Industry Associations
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