Remember when Saturday morning cartoons were sacred? Shows like Transformers and Teenage Mutant Ninja Turtles didn’t just entertain kids -- they powered billion-dollar toy sales and shaped a generation’s playtime. But today, the world looks very different. These days, kids wouldn’t even know what a VCR is. Traditional TV viewership among young people has plummeted, Saturday morning cartoons are a thing of the past, and yet, US toy sales have nearly doubled -- from $20.3 billion in 2003 to $41 billion in 2023. So, how did an industry so dependent on TV not just survive -- but thrive?
The answer lies in the rise of streaming platforms like Netflix and YouTube. These platforms have replaced the Saturday morning cartoon as the cornerstone of children’s entertainment, creating immersive, on-demand ecosystems where every episode, video, or tutorial doubles as a potential driver of toy sales. Let’s face it -- streaming hasn’t just kept kids entertained; it’s flipped the whole toy industry on its head. By leaning into intellectual property (IP) and reimagining how their brands connect with kids and parents, toy companies have turned streaming platforms into modern-day toy aisles.
So take a stroll with me down the new toy aisles to explore how platforms like Netflix and YouTube are leading this transformation and what it means for the future of toys.
Netflix and YouTube: The New Toy Aisles
Netflix and YouTube have fundamentally redefined how children engage with content and brands, serving as complementary engines for today’s toy industry. Netflix drives global scale, transforming popular IPs into cultural phenomena, while YouTube fosters grassroots engagement and serves as a launchpad for emerging properties.
Netflix: A Gateway to Global Success
Netflix has mastered the art of turning kids’ content into marketing powerhouses. According to The Netflix Performance Report: Kids Content, by leading streaming media analyst Emily Horgan, nearly 1 in 4 of the top 25 kids' series on Netflix are directly tied to iconic toy or video game franchises, including Barbie Dreamhouse Adventures, Paw Patrol, My Little Pony: Make Your Mark, Sonic Prime, LEGO Ninjago: Masters of Spinjitzu, and Trolls: The Beat Goes On!
For example:
- Barbie Dreamhouse Adventures: This series drove 98 million views in just six months, fueling product launches that solidified Barbie’s cultural relevance -- even after the blockbuster Barbie Movie.
- Hot Wheels Ultimate Challenge: A Netflix original series reinvigorated this iconic Mattel brand by blending storytelling with interactive challenges, boosting toy sales globally and introducing a new generation of fans to the franchise.
YouTube: The Digital Incubator
YouTube, by contrast, serves as an essential incubator for toy-driven IPs. Its low-cost accessibility allows brands to test content, refine strategies, and build dedicated fan bases before scaling to broader platforms.
Research from Precise TV reveals that 95% of parents and children aged 2-12 co-view content on YouTube, and parents are 60% more likely to purchase products advertised during these sessions.
Together, Netflix and YouTube have become the modern-day toy aisles, offering brands an unparalleled ability to connect with kids and parents, turning screen time into playtime -- and profits.
So how should you tap into this trend as an advertiser? Well put simply, think like a content producer and less like an advertiser.
Harnessing Streaming Platforms: Finding Your Barbie
In the streaming era, brands have an unprecedented opportunity to "Find Your Barbie" -- a strategy to fully leverage their intellectual property through innovative content and strategic partnerships. Platforms like Netflix and YouTube enable brands to reinvent their IP, making it more engaging, versatile, and profitable.
Reimagining IP for Modern Audiences: Streaming platforms allow brands to craft content that resonates with today’s digitally savvy children and their parents. Barbie, for instance, has evolved from a traditional doll into a multifaceted brand with animated series, movies, and interactive content, staying relevant in a rapidly changing media landscape.
Strategic Content Development: These platforms offer flexibility for diverse content formats, from serialized shows to interactive stories and short-form videos. This versatility allows brands to explore different storytelling techniques and engage their audience dynamically. For example, Lego City Adventures showcases the versatility of LEGO sets, fostering creativity and driving purchase intent.
Increasing Time Spent with Consumers: For brands targeting kids, engaging content is far more effective than traditional advertising. By producing beloved shows, brands can increase the time children spend interacting with their IP, fostering deeper emotional connections and long-term loyalty. Integrating toys and products seamlessly into the content ensures that kids associate positive experiences with the brand.
Data-Driven Insights: Streaming platforms provide valuable analytics, enabling brands to understand viewer preferences and behaviors. This data-driven approach allows companies to tailor their content and merchandising strategies, aligning product launches with popular characters or storylines.
Collaborative Partnerships: Brands can collaborate with platforms to create exclusive content that highlights their IP. Co-branded series, special episodes, or behind-the-scenes features can expand the brand’s universe. For example, Paw Patrol could partner with Netflix to release exclusive episodes introducing new characters and toys, keeping the franchise fresh and exciting.
Case Studies: Two Legacy Toy Brands Thriving in the Streaming Era
Barbie: Reinventing an Icon
- Few brands have evolved as successfully as Barbie. Mattel has transformed this classic toy into a multimedia powerhouse, aligning content strategies with merchandise sales.
- On Netflix: Barbie Dreamhouse Adventures became a hit, driving 98 million views in the second half of 2023 alone. The success of this series reinforced Barbie's cultural relevance and directly supported the brand’s product launches.
- The Barbie Movie: In 2023, the release of the Barbie movie elevated the brand to new heights, generating $5.4 billion in revenue, with a significant portion tied to merchandise inspired by the film and associated content.
- On YouTube:The official Barbie YouTube channel has 12.5 Million subscribers driving more than 40M views in the last 30 days on digital-first programming.
- Through its strategic pivot to digital-first initiatives, Mattel has demonstrated how classic brands can remain relevant and thrive in the streaming era.
LEGO: Building Success Across Platforms
- LEGO exemplifies how a brand can use digital platforms to expand its reach and maintain global relevance.
- On YouTube: LEGO launched its official YouTube channel in 2005, which as of 2024 boasts 19 million subscribers. The channel features animated series, building tutorials, and behind-the-scenes content, creating a direct connection with fans and driving engagement.
- On Netflix: LEGO has two series in Netflix's top 50 kids' shows according to Horgan's data: LEGO Ninjago: Dragons Rising: Season 1 (2023) accumulated 29.9 million hours viewed and 4.1 million views. LEGO City Adventures: Season 1 garnered 5.5 million hours viewed and 1.4 million views.
- From $1.1 billion in revenue in 2003 to $9.4 billion globally in 2023, LEGO's growth underscores how digital integrations and engaging content can drive toy sales while keeping a brand culturally relevant.
Conclusion: The Future of Play
Netflix and YouTube have already transformed the toy industry, but their impact is just the beginning. As technology continues to evolve, the integration of storytelling, data insights, and interactive experiences will unlock even greater potential for brands. The next frontier lies in harnessing emerging technologies like Augmented Reality, Virtual Reality, and artificial intelligence to create deeper, more immersive connections between children, content, and toys.
Streaming platforms have the power to turn passive viewers into active participants, where a show isn’t just watched -- it’s experienced across platforms, products, and virtual worlds. Imagine a future where children can interact with their favorite characters in real time, or where digital-first brands test new products directly with engaged fans before they even hit store shelves.
For brands, the challenge is no longer about adapting to streaming platforms but about staying ahead of a rapidly changing landscape. Success will come to those who not only "Find Their Barbie" but also reimagine what’s possible when entertainment and commerce converge. The future of play is global, personalized, and immersive -- and it’s being built on the platforms that kids and parents are already watching today.
Posted at MediaVillage through the Thought Leadership self-publishing platform.
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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.