Archive for the 'Technology Toys' Category

How 2016′s 7 biggest kidtech moves will impact 2017

Thursday, January 26th, 2017

[The following is an extended version of a feature article I wrote for the online magazine Kidscreen, January 26, 2017. In this version you will find additional interview quotes and financial details of business deals mentioned.]

What a year 2016 was for kids digital businesses. From Age of Learning’s US$150-million funding injection, to LeapFrog jumping ship to VTech, there were plenty of opportunities—and dollars—to be had. But rising to the top were seven major moves spanning the app, toy, education and investment worlds, and their impact will only begin to materialize in the year ahead. This rings especially true when it comes to building platforms and brands, the growth of subscription pricing and the state of venture capital investments. Let’s take a closer look:

1. Age of Learning receives US$150-million venture investment

This was a major business announcement, not just for the kids space but also within the entire venture capital community. Age of Learning’s flagship digital product is ABCmouse, and over the last few years the company has consolidated its offering by allowing a single user account to be accessed across online, tablet or smartphone devices. (Consumers purchasing a single subscription can add up to three users, and schools have access to the product for free.)

As with many traditional subscription products sold to kids, keeping your user-acquisition costs low is important, but you also don’t want to curtail long-term sales growth. Ongoing subscription renewals are vital for growing business revenues, and the cost of renewals is a fraction of what it takes to acquire a customer for the first time. Revenues from subscriptions are the lifeblood of ABCmouse, so Common Sense Media‘s report that trying to cancel one is challenging at best, is not surprising.

Since the investment by Iconiq Capital, Age of Learning has been on a hiring spree in order to develop a deeper content base, push new older-skewing products and continue product expansion into emerging markets like China. While Age of Learning has not said so specifically, one also has to wonder about sales expansion opportunities in India, too.

One brand related lesson can be learned here from a past business mistake from LeapFrog, another company mentioned in this article. Historically, a company that starts off selling consumer products almost exclusively to young children will face a major challenge when trying to age up their product lines and related sales. This was a problem for LeapFrog over a decade ago when the company went after a new revenue stream by selling learning products to tweens. There were many challenges to LeapFrog in pursuing the tween marketplace but maybe the biggest was the perception of their brand by the audience they wished to sell to. Up until that point LeapFrog sold primarily preschool through first grade products. To a tween LeapFrog products were perceived as a “baby thing”, and who could blame them? Aging up a company’s product line is a major challenge without first creating a new brand that appeals to that new demographic. While this was a hard lesson for LeapFrog, could Age of Learning run into a similar problem as they try to age up their ABCmouse product? Granted, schools buying an educational product push the wares onto students, and students have almost no say about the learning materials they’re forced to use. Still the brand perception of a “baby thing” can jeopardize sales to older audiences.

2. VTech acquires LeapFrog for US$72 million

The sale of LeapFrog came as a shock to many fans of the beloved brand, though a potential acquisition had been in quiet discussions amid falling quarterly sales, profits and stock prices. According to Tom Kalinske, who was LeapFrog’s CEO between 1997 and 2006, and an active board member at the time of last year’s sale, it was difficult to see the company sold, though it provided the greatest return to investors.

In terms of financials, LeapFrog was at its revenue apex in 2005, bringing in more than US$650 million globally. Compare that to VTech’s electronic learning division, which was hauling in US$281 million at this time. However, by the 2016 acquisition, LeapFrog’s last trailing 12 months of financials show it brought in US$223 million, while VTech revenue had swelled to US$657 million globally, amounting to a swap of fortunes for the two companies.

When asked what the main challenges were for LeapFrog, Kalinske points to the changing nature of platforms that parents wish to buy for their children.

“The sale of LeapFrog to VTech reflects the dramatic change of parents originally wanting to buy hardware-related learning products, to a new desire to buy software-based ones. LeapFrog didn’t move fast enough to get their content onto other platforms,” Kalinske says. “If you add up all the software apps and learning apps, as a market it’s not a bad picture. What was bad was all the custom tablets, like Nabi, Fuhu, and even LeapPads, specifically designed for kids. Moms decided they didn’t need them anymore because they could do the same functions with their phones or older hand-me-down tablets. In this regard, LeapFrog did not move quickly enough with this market change.”

Kalinske also adds a second mistake LeapFrog made was not making basic lower-priced learning toys as VTech was doing. As a result of not addressing this consumer interest, LeapFrog lost valuable market share to VTech as a result.

When asked about venture investments in the kids space, John Barbour, LeapFrog’s most recent CEO, asks, “How come over the last eight to 10 years there’s been an immense amount of investment in educational content for kids, but yet only a handful of companies have truly been successful in having a significant return on investment?” He says there maybe 100 companies have put money into this space, with a bulk of them ultimately failing.

Reflecting on more recent changes, Kalinske shares that raising capital is hard for any company, and while landing seed funding to jumpstart a business is not impossible, the process of moving past seed funding to a future investment is currently challenging. He adds, “Investors are looking for more traction and more revenue these days. The venture capital world and its judgment of startups in this space is even harder than it used to be. It’s a pretty tough place to be in right now. While it’s hard in the kids space, the story is not all doom and gloom, there are some successes out there still.”

Ironically, just after the acquisition, LeapFrog announced its new online learning service called LeapFrog Academy. While in development for some time before the acquisition, could this new subscription-based product be part of LeapFrog’s master plan to compete with ABCmouse? Barbour mentions that simply taking advantage of subscription pricing to sell more apps and generate more income will not work for everyone.

“Subscription pricing is the panacea everyone hopes will save business lives, but it doesn’t work that way. To be successful in the kids subscription space, you need to have a brand that people really trust, with an abundance of content. It should be more than what anyone would ever need as part of the value proposition, and you also need a strong customer-acquisition and management infrastructure,” Barbour says. “ABCmouse has much of that, especially the strong customer-acquisition and management model. ABCmouse has succeeded here where the bulk of everyone else has failed because they are usually missing one or all of those three key elements.”

3. Spin Master acquires Toca Boca

Another striking announcement was the sale of children’s app world darling Toca Boca to Canadian toy company Spin Master. Rumors of the sale had been floating around for more than a year before the formal announcement, with a purchase price predicted to fetch as much as US$100 million. Speaking with Björn Jeffery, CEO and co-founder of Toca Boca, he confirms his company was in discussions with a number of buyers, though he points out the sale was handled by parentco Bonnier, and not Toca Boca.

A recent business filing by Spin Master states the acquisition price as being just under US$31 million, which is far from what speculators had been anticipating for a company with more than 150 million app downloads. Jeffery mentions Toca Boca had seen healthy revenue growth year over year since its launch in 2011, and had been a profitable company up until 2015. That was when Toca Boca started investing in its SVOD service, Toca TV, which launched last summer.

Now that Toca Boca is part of Spin Master, the level of business experience and support in this domain has been, according to Jeffery, “a very positive thing.” Where such an acquisition opportunity allows one to “draw strength and experience from another company.” Jeffery shares “it’s nice to have found a new home, Spin Master has a vision and an idea of where they hope to go with us, and that’s not the environment we came from working under our prior owner. That intent makes a huge difference from a strategic perspective.”

Jeffery sees how many kids app companies seem to be giving up on consumer sales and notes how some of these companies are shifting to education. This shift allows businesses to pursue larger B2B school sales rather than smaller, individual B2C sales. Jeffery believes this is most likely being driven by the difficulties to monetize in B2C. “It was not easy being a kids app developer in 2016, and it will not get any easier in 2017 either.”

When asked about what the 2017 kids app space will look like, Jeffery says companies are either “working small,” or “going big,” and there is no in between. Developers either choose to work with a handful or fewer number of people, making a small existence for the team. Or they go big, trying to raise venture investment dollars and create something really large. There are not many kids app companies that choose to be mid-sized. Jeffery describes this as, “the polarization of the industry,” where one is not better than the other, it’s just there’s not a middle ground.

As for app subscriptions in the kids market Jeffery says “It’s still early to say how subscriptions will play out. It’s hard to tell if there’s a greater purchase demand for kids apps in the app stores with subscriptions than without it. It’s clear by the number of companies offering subscriptions, it’s busy, there are many more subscription offers now than before, though these are still very early days for subscription pricing.”

4.) Khan Academy acquires Duck Duck Moose

Most players in the children’s app world will point to Duck Duck Moose (DDM) as one of the industry’s earliest successes. Launched in 2008, three friends formed the company with a mission to engage young children using high-quality educational apps. By 2012, DDM was one of the first kids app companies to receive venture investment to the tune of US$7 million, with just 2.5 million app downloads at the time. Last year, DDM announced it had been acquired by video learning powerhouse Khan Academy. Just before the acquisition, DDM had reached 10 million paid app downloads.

The deal was unusual by nature. DDM was a for-profit company and its buyer a non-profit one, resulting in a combination that would not provide a significant return on investment. This combination was enabled by Omidyar Network, the philanthropic investment firm and first underwriter of a new early learning initiative at Khan Academy, that will be led by DDM. Omidyar provided an initial $3 million US grant to support two years of future DDM operations, and Khan Academy will continue raising funds to support this early learning initiative. Khan Academy works in a similar way where it seeks out grant investment to develop and support its vision of free learning materials for all. As part of the acquisition plan DDM, which previously sold its apps for a price, would now give them away for free.

Caroline Hu Flexer, CEO and founder of Duck Duck Moose, mentions her company had many acquisition conversations, and had for-profit offers that could have resulted in a more lucrative deal. However, the opportunity to make a difference, to make a lasting impact and to reach as many kids as possible might not have been the outcome with the other suitors.

In the few months following the acquisition, DDM has seen an additional 15 million app downloads without releasing a single new product. This brings its lifetime global app download count from 10 million to more than 25 million.

“Khan Academy has such reach and great distribution, which is why wanted to collaborate with them” says Flexer. “The impact we’re making at a global level is amazing. We’re now hearing from teachers all over the world about how this move has provided them with access to high-quality materials that they couldn’t get before. This is what we have wanted to do all along, which is to figure out how to make the biggest impact with kids, and especially those who wouldn’t have the means or resources to benefit from our apps.”

Flexer shares their expertise all along has been in app development, which her small team will continue to focus on. Being part of the non-profit Khan Academy now means DDM will be funded by philanthropic support and community donations, like all other Khan Academy initiatives. No longer will DDM need to rely on app store sales to sustain their company.

This acquisition also offers a great brand lesson. Khan Academy’s products are thought of collectively as for older users, whereas DDM’s products are a perfect fit for younger audiences. This acquisition helped broaden Khan’s reach into the preschool set, and did so with the combined expertise coming from two distinct brands, with one targeting older and one targeting younger.

5.) StoryToys, Amplify and Touch Press merge

Both StoryToys and Touch Press are known in the app world for creating great apps, with the former focusing on younger kids and the latter on older ones. Amplify Education was a digital K-12 division of Rupert Murdoch’s News Corp. News Corp sold the Amplify business to it’s management team in 2015, who were backed by Emerson Collective, an education foundation started by Laurene Powell Jobs, the wife of late Apple founder Steve Jobs.

In 2016 it was announced that the games business of Amplify would merge with StoryToys, along with the app portfolio and brand of Touch Press, under a new company Touch Press Inc. If you’ve followed along this far, here’s a somewhat confusing element to this whole deal – it has also been backed by an Emerson Collective Investment vehicle, Amplify Education Partners.

Barry O’Neill, CEO of StoryToys, is now CEO of Touch Press, which will be the parent company for the collective. (StoryToys and Amplify serve as imprints.)

“Subscription models, both platform and publisher-led, will become the predominant content business model by the end of 2018,” O’Neill says. He also keeping content platforms agnostic as they continue to change over time.

As for venture investment O’Neill notes “There’s a well-documented Series A cliff that has compounded the perception that venture capital has dried up for kid tech companies. Easy access to consumer market via the app stores and rapid product development tools such as Unity have led to an explosion of mom and pop shops, as well as micro-startups,” he says. “Many of these have been able to secure initial seed capital through funds and accelerators, which have also proliferated over the last few years. However, the availability of Series A has not kept up with the pace of seed fund investment, hence the perception that venture capital is harder to come by.”

6.) Zynga’s learning games accelerator Co.Lab closes

Co.Lab was a nonprofit initiative founded in 2013 by commercial gaming company Zynga and education investment company NewSchools Venture Fund. Co.Lab was an accelerator that invested mostly in learning game startups. During the time it was in operation, it had seen 28 different companies go through its program. (StoryToys was one of them.) Each company received some amount of investment dollars in exchange for a small amount of equity back to Co.Lab to help mentor those companies growth.

Last spring, Co.Lab executive director Esteban Sosnik announced in a blog post that Co.Lab would be closing its doors. This came as startling news to many in the kidtech and edtech worlds. In particular, it gave the impression of a contracting and unhealthy kids business.

However, as Sosnik describes it from the investor’s side of a deal, the perceived venture investment problem has less to do with venture companies pulling back and more to do with how seed funded companies are not scaling revenues large enough to appeal to venture capital funds. Sosnik states both the consumer and school markets are very complex, which can add a level of complexity for scaling a business. The problem also intensifies with companies that rely on producing a lot of content, as content is so expensive to develop.

While Sosnik is no longer part of Co.Lab or Zynga, he is now a partner at Reach Capital, a company still making investments in the edtech startup space. Sosnik says he’s seeing a lot of activity in the K-12 and college-level education space, and Reach is making investments with a US$53-million fund it started in 2015. What he and other partners at Reach are looking to do is back entrepreneurs that value impact and can make a difference, especially among lower-income and underserved communities. (Note the similar goal to investment foundation Emerson Collective mentioned above.)

Sosnik also sees potential in startups that target two consumer business areas in particular. The first being consumer purchased early childhood products, as parents spend a significant amount of money preparing young children for school readiness. The second is college readiness, with products that cater to SAT prep and college admissions needs. Esteban points out that these are the two largest consumer learning business sectors.

Sosnik is also focused on finding companies that have a consistent revenue stream throughout the year, possibly through consumer holiday sales combined with school sales over the summer, or through ongoing monetization from subscriptions sales. Strong revenue potential coming from one of these two revenue models is part of what Sosnik looks for when considering future investment deals for Reach.

When reflecting on platforms, Sosnik is quick to say “Everybody in technology wants to develop the next ‘go to’ platform.” Historically this hasn’t happened, though Sosnik points to early platform successes that have helped increase communication between schools and parents with companies like ClassDojo or FreshGrade. (Note, Reach Capital is an investor in both of these companies. Emerson Collective is also an investor in FreshGrade.)

7.) Apple announces subscription pricing for developers

Apple made the announcement in mid-2016 it would begin to expand subscription pricing options to all app developers, including companies that create apps for kids. Shortly after Apple’s announcement, Google made a similar subscription announcement for Android developers. Since these announcements, how has subscription pricing benefited app industry generally, and kids app sales specifically?

While Apple was responsive to requests for comment, no new information was offered in terms of subscription sales or market growth since its announcement. However, app market data and analytics provider App Annie offered a lot to think about. Here are some surprising nuggets of information regarding the size of the kids app market as well as the changes subscription pricing has brought:

According to the data tracker, the global iOS kids apps market was estimated to be worth more than US$200 million last year. Apps within the Family category on the Google Play store garnered upwards of US$130 million globally in the last trailing nine months or so. (Google Play didn’t roll out its Family category until June 2015, so the dollar amount is not apples to apples.)

This will come as a surprise to many, that global sales from kids apps is not such a big market to play in after all. This might best explain how everyone interviewed for this article said selling in the kids app space is hard. Especially when you compare the size of the kids iOS and Android app market (roughly more than $330 million globally) to the sales numbers in the toy space for just VTech and LeapFrog together (collectively $880 million just between the two companies). In terms of changes related to app subscription pricing App Annie stated they don’t have specific numbers for kids subscriptions, but they could share other broad trends they see with subscriptions across other categories.

“Subscriptions have become an increasingly important type of app purchase, currently accounting for roughly 15% of all app store revenue. They have impacted a broad range of categories, including music streaming (Spotify and Pandora Radio), video streaming (Netflix and HBO NOW) and dating (Tinder). Both Apple and Google made changes in June 2016 that we believe will propel subscriptions even further. Apple’s App Store and Google Play have increased the share of revenue that publishers receive for subscriptions and iOS has opened them up to all app categories, including games.”

The year ahead, and beyond

There you have it, seven big stories to learn from, with a number of key takeaways for the year ahead. However, there’s one more observation to share, one not often mentioned in the halls of industry conferences and in business case studies. In researching this article, many executives interviewed all expressed in one way or another the desire to make a difference. One comment shared in particular best captures that pursuit. It comes from Mike Wood, the founder of LeapFrog, where he served as its first CEO from 1994 to 2004.

After Wood left LeapFrog he founded another early learning company called Smarty Ants, which he sold in 2015. Today, in an elementary school just north of San Francisco, Wood spends a few hours a day, almost every day of the week, helping young kids in grades K-2 learn how to read. Wood reflected on starting his businesses and the volunteering he is doing now. He shared the following:

“When you run a company with many passionate and smart people reaching to do the best they can for kids, it’s hard not to be attached to a company and the benefit you can bring to kids. For years at LeapFrog, as well as in my next company Smarty Ants, I would tell people ‘we’re in the goosebumps business,’ we have the opportunity to change the trajectory in many kids lives. I get to be in a very special place, I’ve been able to work alongside some smart, optimistic, cheerful kids, and I get to be there when they just start learning to read. There’s lots of goosebumps in being there when that happens. Now it’s much different in terms of gratification from running a company like LeapFrog versus working directly with a small group of kids, but you still get goosebumps either way. You get the same joy when you see kids moving forward either way. It’s emotionally powerful to be part of these things.”

Here’s wishing everyone a wonderful and successful year ahead, filled with many new ideas to grow your businesses. May your future hold plenty of goosebumps!

Scott Traylor is the founder of 360KID and a consultant to many children’s interactive businesses and products (none of which are referenced in this article, except for LeapFrog, with which Traylor worked from 2004 to 2009, Smarty Ants, and a few Co.Lab startups Scott advised but are not mentioned in this article). He’s also a former computer science teacher and currently lives in Silicon Valley, searching for the next big opportunity in the children’s industry. Scott can be reached at Scott@360KID.com.

Share this article...

Children’s Conferences for 2016

Wednesday, December 2nd, 2015

Photo of a conference hall

Our great big list of kids conferences for 2016 is ready to be released! It’s a compilation of major events that touch on different areas of the children’s media world. Apps, toys, eBooks, education, television, video games, and more. A similar list was created last year at this time for 2015 conferences. The 2016 list is now available in two flavors. The first is a PDF doc that sorts events chronologically. The second PDF segments conferences by media type, or focus.

You may be asking yourself, “Is every children’s media event included on this list?” The answer is no. There are 68 events listed here and you could easily add hundreds more. However, the conferences included tend to be among the biggest or best known events in their specific area of focus.

A few notes about what’s new in our conference list since last year:

  • Conferences related to virtual reality and augmented reality were added as this business sector is heating up fast. These events are not specifically child focused, but is an area worth watching as it could offer new opportunities with children’s media down the road.

  • One digital video conference, VidCon, was added as more and more kids watch digital videos on mobile devices. Another event to look for is YouTube’s Brandcast, which at the time of writing has not publicly announced a date for 2016.

  • Two big children’s research conferences, Society for Research in Child Development (SRCD) and the Cognitive Development Society (CDS) are biennual events, and 2016 is an off year for each. See you in 2017!

  • The iKids event from Brunico has been folded into their annual Kidscreen conference.

  • Early Education & Technology for Children (EETC) has been folded into the National Association for the Education of Young Children (NAEYC) annual conference.

  • Also not included at the time of posting, Common Sense Media and Vicky Rideout should have a Zero to Eight media use report out sometime in 2016. An event date has yet to be announced but I’m told to look for it later in the year.

If you know of other events not included on our list that could be of benefit to the children’s media community, please do share a comment below, complete with the event name, date(s), location, and URL. Thanks for your help, and I look forward to seeing you at a future event!

Share this article...

Toy Fair 2015: Brand Mashups, Smart Toys and Indie Innovation

Saturday, February 28th, 2015

The following is an article I wrote for the February 20, 2015 issue of the iKids weekly online magazine.

Mattel's Hello Barbie was among the top tech toys talked about at the 2015 NY Toy Fair

Creative play pushed the envelope once again at this year’s International Toy Fair, held earlier this week in New York City. Organizers of the event reported over 7,000 new toy products were unveiled for the first time at the show. For those who follow tech toys you may be asking yourself, “Were there any new playful app announcements at Toy Fair?” Yes, but fewer breakthrough announcements compared to last year. “How about new robots?” Yes, too many dinosaur robots. Again nothing really noteworthy. “Indie startups?” Yes, a handful to keep an eye on. “Tech toy innovation?” Yes indeed, with clever business collaborations, brand mashups, and new player innovation that pushes the industry forward.

Before jumping into notable tech, there were a few non-tech announcements worth sharing:

ThinkFun Maker kits, one of three different kits available

Raggedy Ann and Andy dolls celebrated their 100th anniversary. (Note: Toy Fair celebrated its 112th year.) Funko’s Pop! Vinyl cube-like head collectible figures made a PR splash. Silly String now glows in the dark. ThinkFun debuted a great set of maker kits that are bound to fly off the shelves (pictured left). And those tiny green plastic army guys had a makeover, re-introduced as Yoga Joes (pictured below), where military clad figures strike various yoga poses. Clever idea indeed!

Green army guys reinvented as Yoga Joes

Tech announcements fell into one of a few different groupings. Some tech toys relied on creative business alliances. Others relied on the strength of a brand tie-in for its inspiration. Others took something old and made it new again. Indies provided the freshest tech toy ideas.

Mattel's update to the View Master with a little help from Google VR

View Master – One of the biggest announcements dangled before the start of Toy Fair was the Mattel/Google partnership to bring the classic View-Master into the 21st century (pictured above). Last year Google released an innovative and inexpensive virtual reality headset kit made out of cardboard. The VR screen is powered by an Android phone dropped into the back of the cardboard box. The update to View-Master relies on similar thinking, though the body that holds your phone to has been neatly designed. While Google Cardboard is the lowest price VR experience you may find anywhere (with some assembly required,) the View-Master update is a slick design and only cost just a bit more.

CogniToys by Elemental Path

Hello Barbie – Another big tech product announcement by Mattel, Hello Barbie (pictured at top of article), might easily be referred to as Hello Siri. Hello Barbie is a WiFi-enabled plaything that can engage in a conversation with you. Ask Barbie a question and she will intelligently respond back to you. Mattel partnered with technology company ToyTalk, this tech toy has a similar feel to last year’s WikiBear announcement. Talking toys are nothing new, but natural and fluid two way conversation through a toy is. Late in the week another similar announcement was made by Elemental Path with a product called CogniToys (pictured right), which is a collaboration with IBM’s Watson technology. Fluid toy communication is destined to be an active product area in the years ahead.

Hasbro's latest Furby creation, with a Star Wars twist: Furbacca

Furbacca – Hasbro has had great success over the last two years thinking up clever new extensions to the Ferby brand. This year the Star War’s themed Furbacca is the latest, complete with free app. Furbacca moves in place and hums different Star Wars songs.

The DynaPod, wearable kidtech with a built in programming twist

DynaPods – Last year we saw a few wearable tech toys make it to market, but most didn’t really have a purpose. It was wearable tech for tech’s sake. DynePods from newcomer Dynepic ties together programming concepts with a wearable display. The DynePod 5×5 LED “screen” (pictured above) communicates with an app through Bluetooth, empowering kids to make small if/then programming routines. These routines are then shared back to the screen, which can detect motion, light up, buzz, and vibrate depending on the programmed request. The display is also Lego compatible so it can be combined to create new interactive experiences.

The Moff Band is a wearable device that communicates with your smart device as you move

Moff Band is a clever motion-based wrist band that interacts with your smartphone or tablet to produce sound effects in real-time. With Moff everyday objects become new pretend play experiences. A broom can become a golf club. A spatula a magic wand. Any physical item can now include a magical sound effect when taped, touched, or moved. Everything around you becomes a plaything. Moff is sure to be the big tech toy hit of the year.

While it was a good year at Toy Fair for tech, it was easy to be left with a feeling of wanting more. More toy tech innovation will indeed come. Watching this play category you will definitely notice the wind through your hair. New product announcements are coming faster through independents rather than through long established traditional toy selling cycles. Stay tuned for many more tech toy announcements to come!

Scott Traylor is the founder of 360KID and an advisor to a number of children’s interactive businesses and products (none of which are referenced in this article.) He’s also a former computer science teacher and currently lives in Silicon Valley, seeking out the next cool kidtech business. Scott can be reached at Scott (at) 360KID (dot) com.

Share this article...

Top-Performing Tech Toy Videos of 2014

Wednesday, January 14th, 2015

The following is an article I wrote for the January 8, 2015 issue of the iKids weekly online magazine.

The Spin Master Dino robotic toy was among the top viewed toy videos in December, 2014.

In early 2014, I wrote an article about the hottest tech trends found at the annual International Toy Fair in New York, an industry Mecca for the biggest toy announcements of the year. At that time, I recorded 50 videos of some of the largest toy presentations. Most of the videos I captured featured technology toys, remote-control robots and tablet-based playthings, though a few action figure-centric videos were captured here and there due to the strength of their IPs.

Looking back on the year in kidtech products, I wondered what I could learn by going through my YouTube collection of toy videos and checking out which clips garnered the most views for the month leading up to the Christmas holiday. Here for your consideration are my Top 10 YouTube toy videos, based on number of views in December 2014.


Company Product Views
Hasbro Furreal Friends – Get Up and Go Go & Pom Pom My Baby Panda 11,971
Mattel Hot Wheels Super Loop 3,413
Spin Master DigiBirds 3,244
Tomy Pokémon Battle Arena 2,408
Spin Master Zoomer Dino 745
Jakks, Lego, Hasbro Star Wars Rebels/Star Wars Command collection 655
Hasbro My Monopoly 603
Spin Master Zuppies 540
Hasbro Nerf Attacknid 534
Hasbro Simon Swipe 522

If YouTube views translate into purchasing interest, then both Hasbro and Spin Master had a good holiday selling season with a few key product lines, primarily those that include robotics or animatronic toys like Furreal Friends or the DigiBirds, Zoomer and Zuppies products. One big surprise was that while the toy industry made great strides in the app and tablet space in the last year, only one of the app-based toys I recorded attracted a large number of views on YouTube. What might this mean? (Note: the number-one item in this Top 10 list included an app that worked with the tech toy. No other toy in this list had a companion app, even though I covered many app-based products at Toy Fair last year.)

A couple of additional surprises: While I was impressed with the technical achievements of robotic toys like Ozobot and Moss, their view results for the month were small. Also included in my collection were video clips of toy products from the smash hit movie Guardians of the Galaxy. The movie was a box office success, but it appears the property did not drive interest in its related toy line ‒ at least according to my view tally. One product I referenced in my earlier article that impressed me was Osmo (formerly called Tangible Play). I had the opportunity to review the product multiple times in 2014, but was asked by the founders not to record or post any video of the app/toy. If I had, I believe it would have placed in my Top 10 viewing list.

Another striking observation from my collection of videos recorded at Toy Fair over the years ‒ in 2006 Hasbro released a giant novelty animatronic pony called Butterscotch, which cost almost $300 at the time. While the clip is now eight years old, it still drove a sizable amount of views in December 2014. Also in 2006, the then popular preschool show Teletubbies had a remote-control Noo-Noo robot used for promotional fun in the hallways of the show. Noo-Noo was not for sale, but the video continues to grab interest. The device was never turned into a toy product for kids, but my stats tell me that if it were, it would be a hit.


Company Product Views
Hasbro Butterscotch Pony (2006) 2,686
Ragdoll Noo-Noo RC Robot (2006) 2,735

Looking at 2015, I’m already seeing some amazing tech innovation in the arena of play. Some are combined physical/digital products, some are pure app plays, and some will tap into the maker movement and 3D printer space. Based on the groundwork of 2014, there will continue to be more innovation coming to kids in the app world, but will that innovation be enough to drive sales and create sustainable products from a business perspective? Of the scores of robots lined up to debut this year, which ones will include “must have” features and contain a level of novelty to help guarantee financial success? Stay tuned for the flurry of announcements sure to come in the next few weeks!

Scott Traylor is the founder of 360KID and an advisor to a number of children’s interactive businesses and products (none of which are referenced in this article.) He’s also a former computer science teacher and currently lives in Silicon Valley, seeking out the next cool kidtech business. Scott can be reached at Scott (at) 360KID (dot) com..

Share this article...

Moving the Needle with Kids Interactive Media

Thursday, January 8th, 2015

In the final weeks of 2014, I spent a lot of time reviewing all of the kidtech product I had seen throughout the year. In part, taking stock of the past year’s digital playthings was related to providing recommendations as a judge for the KAPi Awards (KAPi meaning Kids at Play Interactive.) The KAPi’s are an industry award for innovation and outstanding design in children’s interactive media. While you can find the complete list of KAPI award winners here, there were a handful of products that didn’t make the list that are worth mentioning. The product may have been too old for kids, or was not digital, or was simply a book. I thought it might be helpful for others to see some of these additional products that, in this reviewers opinion, are deserving of high praise for moving the interactive industry forward in 2014.

Here’s my list…

The Book with No Pictures – by B.J. Novak

The Book with No Pictures is a breakthrough in children's books The first item on my list is not an app. It does not require batteries, and no assembly required. It’s a children’s book. Buy it, find a four or five year old child to read it to, and let the fun begin. If you don’t have a young child send it as a gift to someone who does. As an adult, don’t over analyze why this book works for young children. It’s silly, appropriately speaks to its target audience, and it just works. I call this book out because of the disruption it’s caused in the children’s book world, and because it can help teach app developers to think about alternative approaches to content creation. Break outside of self-imposed barriers to creating content in any medium.

Monument Valley

Beautiful art and engaging game play can be found in the Escher-esk app called Monument ValleyI fell in love with this app earlier in 2014. The artwork is absolutely beautiful, the Escher-esk puzzles are fun and challenging. It did win a KAPi Awards for best app for older kids, but teens and adults will greatly enjoy it as well. It’s only flaw is that the app eventually ends. It’s a game you wish would go on forever. But fear not, the makers of Monument Valley released an additional content download late in the year to extend the challenge with additional levels of play. This app sets the bar very high for the rest of the industry. Currently it’s the yardstick I use to measure against all other apps.

Fibbage

From the makers of You Don't Know Jack, the social game of FibbageHere’s one you won’t find on any kids list. The game of Fibbage is rated T for Teen, and is a major hit at parties for adults young and old. They’re many things to say about this game. First, do you remember the You Don’t Know Jack titles from years ago? Well, Fibbage was developed by the same creative folks! The game uses a series of fill in the blank phrases, and audience members try to give a response, or a lie, that throws others into voting for your answer. After a short number of rounds the player with the most votes wins. It’s easy to learn, and the humor grows as more people play. But here’s what I really appreciate about this game. In an age of over the top 3D graphics, and deep story lines, and super slick characters and properties, Fibbage is incredibly simple console game, and in a sense a minimalist approach to game play that beats all other games it competes with. It’s also designed to work easily with any kind of smartphone, and you don’t have to be in the same room to play with others. You can have team members from around the world compete with you! Be forewarned there’s crude humor and fart noise throughout. If you can put that aside you will be amazed at how much fun this game is. As a developer, you will appreciate the beauty and simplicity of it’s design.

Osmo

Photo of the Osmo interactive gameInteractive products that successfully marry together fun interactivity software with physical objects can be counted on just one hand. The industry is littered with virtual and digital product combination failures. Osmo, another KAPi Award winner, stands as one of the shining example in this category. The product can be purchased at most Apple retail stores, and comes bundled with physical pieces to play three games, along with the three apps you download for free to play those games. There’s a fun and challenging tangram puzzle, single or multi player spelling games, and a drawing game where you control the direction of falling virtual balls based on what you draw. It’s a clever set of games and I can’t wait to see what new products this company announces in 2015.

Positive Digital Content for Kids

Image of the book Positive Digital Content for KidsThere are two things I really admire together; great design and insightful articles about the interactive industry. This beautifully designed online book includes both! It’s a free, informative guide for developers, complete with excellent interviews from leading children’s product developers like the BBC, Ravensburger, and Toca Boca. Interactive media designers, play designers, and print designers can learn a lot about making successful products and great designs for kids from this book. Another must read for product producers. For me, it was one of the best finds of 2014. Now download a copy and enjoy, but do know the book is also available in a limitedprint run.

Google Cardboard

Photo of Google CardboardRegardless of what you may think of this deal, the world of virtual reality took a giant step forward in 2014 with the acquisition of Oculus Rift by Facebook. What many people may not be able to see is just how fast the VR space is moving. Google Cardboard is a great example of that breakneck speed. Cardboard is an innovative, low cost solution to experience virtual reality. Folding together a pre-perfed cardboard mailer and sticking your Android compatible phone in the back allows anyone access to a compelling VR experience. The idea itself suggests that a lot can be done with VR in short, affordable bursts. The Google Cardboard initiative is definitely thinking outside the box. Watch for many copycats in the coming months.

Moff Band

Photo of the Moff Band interactive productThe Moff Band is a set of two flexible wrist bands that communicate motion activity of your arms back to an Apple tablet or smartphone. That motion drives a simple sound effects app. Ever play air drums and wish you could enhance the experience with the perfect set of well orchestrated rhythm effects? Ever have a wooden spoon and needed the audio support to make you feel like you dueling with Zorro? Or maybe a princess’ magic wand is more your style, complete with sparkle sounds? The Moff Band provides a great audio backdrop to your pretend play. The product was a huge Kickstarter success in Japan earlier in the year, and is now just making its way to the US. Watch for it in 2015.

Press Here – by Hervé Tullet

Image of the Press Here children's book by Hervé TulletI’ll end my list with another children’s book. Press Here is not just another great children’s book, it’s an excellent example of how to capture the spirit of great interactivity. In a sense it’s a new breed of books, one the feels like the author spent a lot of time studying the world of successful kids apps and theater of the mind, and folded the two into the book’s pages. Anyone working in the industry must experience this book with a child. This is not simply a book for techie wonks. Kids love it. You will love it. It’s a great addition to a young child’s library as well as your professional library.

Have you used any of the above products? Have you read any of these books? Have thoughts about other products that should be added to this list? Leave a comment below to share with others!

Share this article...