In the last week of October, I was invited to participate in a conference that was held at the Google headquarters in Mountain View, CA called Breakthrough Learning in a Digital Age. While I was at the event I had the opportunity to interview a number of thought leaders involved in the world of technology and learning. To celebrate the 40th anniversary of Sesame Street, I thought it fitting to begin with an interview I had with Gary Knell, President and CEO of Sesame Workshop. The following is a transcription of our discussion. Portions of this interview were edited for clarity. Stay tuned for more interviews in the coming days and weeks.

QUICK QUESTION PICKER:

When looking at expanding into other mediums, how will you apply the Sesame philosophy?

In terms of metrics, do you see Sesame’s on air numbers going down and online numbers going up?

Is it more challenging today for creators of younger children’s content to be on air?

In regards to testifying on Capitol Hill about the Children’s Television Act, what outcome are you looking for?

Do we need the Children’s Television Act for other media formats?

What is the Cooney Prize?

INTERVIEW:

Scott Traylor: Congratulations on the upcoming 40th anniversary of Sesame Street. It’s amazing to think how far the Sesame Street show has come, a show that is often called the “educational television standard.” When you look at expanding into other mediums, how do you think you will be applying that same Sesame philosophy?

Gary Knell: Well the show was invented 40 years ago and has now won more Emmy Awards than any television show in history. Recently we were awarded the lifetime achievement award at the Emmy’s with a standing ovation from, I think, everyone who ever worked in daytime television. But we know today that children are using applications that weren’t invented back when we started the show, and media and technology is getting faster, smaller, and cheaper. So it’s a world of on demand media, portability, those are places that we have to be because those are the access points to where kids are going to find Sesame Street. This was the first year we have ever seen more people and more children access Sesame Street content off television than on television. That’s through video on demand, that’s through iTunes, that’s through YouTube, that’s through our website. It’s through all of the different ways in which we are spreading our content now because that’s where the audience is going. (Return to Question Picker)

Traylor: So if you were just looking at the metrics of how viewers are watching Sesame Street, you see on air numbers going down and online numbers going up?

Knell: Well I think you’re generally seeing that across television, and certainly network television and PBS is no exception to that because there are a couple of things happening. Sesame Street was one of two preschool shows in 1988. Today there are 54 preschool shows on television. If you just look at market share, you’re not going to have the same market share today that you did 20 years ago. But more importantly, kids and parents are just accessing media differently today. For example, I was just chatting with someone at the University of California here who told me about her daughter who does not watch television but when she sees mom on her laptop, sits down in her lap and says, “Can we watch Elmo for ten minutes?” And I think that’s what’s happening now. I think you’re finding parents who are trying to have more of a control over their child’s viewing habits and behaviors. The TV becomes less of an available babysitter. Interactive technologies give us all the ability to have a more vibrant, richer learning experience than one-way television. (Return to Question Picker)

Traylor: Do you think it’s more challenging today for creators of younger children’s content to be on air? In part I look at the example of Viacom recently folding the popular preschool channel Noggin into Nick Jr. I see this move as something that’s a detriment to the entire preschool space. It’s too bad there aren’t more outlets like that.

Knell: Yeah, I think there were a combination of factors to that decision which may have had to do mostly with branding, as well as the economics of children’s programming, because there are 54 shows, so I think Nickelodeon probably made the decision that, well, we need to be under this umbrella because it will attract more people to watch our programs. But I agree with you. I think we have to have some safe spaces for children, where moms and dads can leave their kids in a place where they’re not going to be marketed to, where they’re going to be safe from commercial messaging, and it’s a place where kids are going to have a learning experience. Because we do know, even with the youngest kids, that television teaches. As Joan Ganz Cooney always says, “It’s not whether television teaches, it’s what does it teach.” So we’ve got to be in those spaces today just as we were in 1969. (Return to Question Picker)

Traylor: Related to those safe spaces for children, I know earlier this summer you were testifying on Capitol Hill in front of Congress about the Children’s Television Act, a bill that a major children’s media advocate, Peggy Charren, was able to see turn into law many years ago. Could you talk a little bit about your latest efforts and what you hope will be achieved?

Knell: Let’s think about how the world of media has changed in the last 20 years. The Internet did not exist 20 years ago, at least in its popular format. What we were trying to urge senators to do was to take a fresh look at this. Maybe the rules about having three hours of educational television on every broadcast station are sort of irrelevant today. I mean most kids don’t know what NBC is necessarily, or channel 9 versus channel 12. It’s really about shows that they’re watching or their platforms online. And I think you’ve got to redefine the space in terms of protecting children’s health and promoting education. So we were trying to promote the idea that there’s a real gap in educational programming today, especially for 6 to 9 year olds, in fact, a bigger gap than there is for preschoolers. The other thing is to make sure that children’s health and welfare are being taken into account. Things like childhood obesity, which have exploded in America over the last decade, in part, many people feel, because of the commercial messages targeting kids with foods that are less than healthy. These are things we were trying to urge Congress to take a fresh look back, 20 years after the initial act, which has become a little bit irrelevant if you go back and look at it. (Return to Question Picker)

Traylor: One might argue that it’s a bit of a challenge to think about the mindset of Children’s Television Act and applying it online or in other kinds of digital media delivery systems, that in principal it’s a great place to go, but in order to get everyone on the same page to try to implement it across numerous online media outlets, there’s a real challenge there.

Knell: It’s true. Although, you know, children’s content platforms are still children’s content platforms. And so you have these iconic characters who have a huge influence over children. When a major character on some channel is promoting double cheeseburgers, it has a big influence on a child’s behavior. It doesn’t really matter what the distribution platform happens to be. You’re looking at the use of licensed characters to promote unhealthy lifestyles. And those are the things that those of us who care about children’s health need to do something about, and that’s what we’re focusing on, along with a lot of other people. (Return to Question Picker)

Traylor: During the Breakthrough Learning event held at Google recently, you announced the Cooney Prize. Could you share a little bit about what you hope it will spark in the years ahead?

Gary Knell: Well we feel that we’re just beginning to unleash the power of digital media in learning applications. There are a lot of people talking about it. This is a way to specifically bring attention to 6 to 9 year olds, which the Joan Ganz Cooney Center is focused on, and try to promote digital learning for literacy using online platforms and also, specifically, mobile learning platforms. The iPod Touch, for example, could be a very powerful learning platform, without the cell phone component. And being able to connect kids to content in unique ways who otherwise disengage from learning could be a way that reaches them more directly. What we’re trying to do is spur innovation by having a prize contest. We will be giving cash awards to the most innovative people who come forward with the most innovative ideas. We hope this contest will spur innovation. We hope that these ideas can be incubated to go to market, and frankly, we hope that other people will copy this. We want to start a movement in which we challenge the conventional wisdom in the gaming community, for instance, that education can’t sell. This is the same challenge that Joan Cooney had before the launch of Sesame Street when she was told that education can’t sell on television. Well we certainly know that is not the case. You now have 54 shows on air, you have six competing networks, and all of this started because of a dinner party in Manhattan decades ago, when two people got together and thought about the idea of using television to teach children something, something more than showing them sugared cereal commercials. And look what happened. Now fast forward to 2009, we think we can spark a similar outcome. What we want to do is jump start this idea a little bit through these awards. (Return to Question Picker)

I raced out the door last night with one of my young friends for a trip to Toys R Us. By the time we arrived, we had 15 minutes before closing time. We would not let this fact deter our mission, to purchase a very specific Nintendo DS title.

Walking into the store, we were immediately confronted a five foot tall box portraying the tweenage Dora. It welcomed visitors to the store with an announcement for the Dora Links online world that would become available in another week or so. My young companion was pulling my hand, trying to steer me in the direction of the video games department. “Please! Hurry up! They’re going to close!” she yelled as we passed the Star Wars section. My jaw dropped. An amazing display of new Lego and non-Lego Star Wars products called out to me. I immediately lost track of time and space, wishing to savor each shiny new Star Wars item displayed before me. There were many life sized Clone Wars images hanging from the rafters, but every one was labeled “Star Wars.” I wondered if other adults knew about the Clone Wars television show and if they too thought there was some mistake with the display’s labeling.

My friend continued to pull me by numerous Hannah Montana products until finally we made it into the video games section. We found the Nintendo DS isle, but the ScribbleNauts title we came for was nowhere to be found. Clearly this area was a hotbed of activity. We groaned out loud that the shelf was empty and a nearby clerk headed to the storage room to find another box full of ScribbleNauts titles to restock the shelf. It was at that point that I ran into the store manager. Now was my chance to get the inside scoop!

We exchanged some small talk around the successful launch of ScribbleNauts. There was a $15 dollar in-store gift card offer with the purchase of this title. I wondered what the video game store down the street was offering to pull people in. I was happy to avoid that’s store’s nine foot evil battlebot display that guarded the door to announce some futuristic XBox Armageddon game. I was excited to buy my copy at a toy store.

The TRU manager I spoke with was certainly on top of her game, despite the corporate cost savings measure to cancel this year’s event to share the latest and greatest product info with all of their store managers before the holiday.

We stood nearby a shelf lined with about nine different netbooks, those trimmed down laptop-like computers which are best used for web browsing and email. They typically cost between $300 and $350, a sizable sum for a toy store purchase. The only netbook I recognized by name was the Disney netbook. The recently announced Nickelodeon netbook was nowhere to be found. I noticed how each netbook was wrapped with three bulky secure straps, making them look less appealing. I asked the manager how the netbooks were selling. “Well, we’re seeing some movement with them, but not a lot. My assumption is that they’re doing better at stores like BestBuy and other consumer goods stores like that.” I asked specifically about the Disney netbook and she said it wasn’t moving any more than the others, though its light coloring and prominent shelf position made it easier to find over its competitors.

Thinking about the latest news in the video games world, I asked how The Beatles Rock Band title was doing.

“The title is doing well. The peripherals are selling nicely too.”

“Anything else of note that’s selling?” Nothing came to mind for her.

“How about that giant Dora display?” I asked.

“Well, I think people don’t quite know what to make of that one yet. Diego recently has been attracting more attention than Dora. While there are still many people that love Dora, Diego is hot. It’s doing well.”

The manager left to follow up on a call in another part of the store. My young friend told me the reason why Diego is doing better than Dora is because there are animals on Diego’s show. “Oh, ” I said. “That makes sense.”

I then brought my ScribbleNauts title, along with the latest Professor Layton title to the counter. I was so excited about a new Professor Layton game, the last one was fantastic.

Trying to strike up a similar conversation with the clerk who was ringing up our purchase I realized there are two kinds of toy people in the world; Those who love toys, love talking about toys, love the business of toys and those who are simply there to punch a clock. I wondered how could anyone not love the toy world, warts and all?

Having completed my purchase, it was announced over the store’s sound system that the store was closed. Now it was my turn to grab my young friend’s hand and drag her through the outside path of the store quickly looking at products we had yet to see.

We scrambled through preschool. Nothing noteworthy stood out which I found very odd. There is always something of interest in this part of the store.

Opposite of the preschool isle there was an end cap display that offered Transformers masks complete with voice pitch shift capability. Cool!

Then we passed a dozen or so miniature, battery powered jeeps and SUVs, the standing out from the crowd. They were all so gigantic in size! My friend wanted to stay here and explore, but there was no time. I wondered how anyone would have space in their garage for such a thing?

Then there was a VTech end cap displaying two different “laptop” computers. These simplified electronic toy computers were targeting young children, but would the 3 inch black and white screen display be enough of a toy offer to maintain a child’s interest, even if that toy was priced for 60 bucks? I began to wonder if the rapid pace of technology change would result in five year olds demanding a real laptop with a real screen next holiday season.

At the end of another isle I was surprised to find that Publications International was still selling their talking books. VTech also had a similar, but smaller talking book display. Okay, maybe I’m jaded, but didn’t the LeapPad and PowerTouch talking book craze move on already? I wondered if the buzz around the Amazon Kindle was behind the decision to keep selling these talking books for another year. Couldn’t any new features be introduced over last year’s model in the domain of toys, reading and technology?

On the way towards the store exit, we passed the Star Wars display again. “No! We have to go!” shouted my young friend. As I was being dragged by the giant Dora display for a second and final time I said “Adiós amigo” and headed out the door. There was so much left to see, so much more to talk about with the store manager. It would have to wait for another visit. Maybe Dora the Explorer is a fitting guest to welcome you to the store after all, whatever her age happens to be, especially if you like to explore the business of toys.

For those that follow my blog, you may remember a post I wrote last winter where I explored the world of children’s television commercials, just before and after the last holiday season. At the time my focus was mostly on the world of technology toys, and how toy companies promote their wares to children through television. Over eight consecutive weekends, I had watched about 100 hours of children’s television across seven stations, which loosely added up to over 3, 000 commercials viewed. That many commercials edited end-to-end would fill an entire day of watching nothing but commercials.

A couple of months ago I was reviewing the data I had collected, deciding if I might undertake a similar effort again this year (I’m looking for sponsors), when I realized I was sitting on a ton of stats related to virtual worlds and kids. After pulling my head out of the world of toys, and instead focusing on social and virtual worlds for kids, I realized that many virtual worlds were advertised for the first time ever on television during the latter part of 2008.

In the months leading up to last year’s Christmas holiday, at least nine virtual worlds were advertised in the US to older kids and younger tweens. These destinations included Bella Sara by Hidden City Games, Build-A-Bearville by Build-A-Bear Workshop, Mattel’s UB Funkeys, Cartoon Network’s Fusion Fall, Irwin Toy’s Me2 Universe, Disney’s Pixie Hollow, Hasbro’s MyEpets and LittlestPetShop, and Wizard 101 by KingsIsle Entertainment. Most companies offered commercial spots in 15 and 30 second lengths to promote their online virtual worlds. All commercials were placed on channels that aired children’s programming with the heaviest rotation appearing on weekends.

The company that had the most commercials in rotation was for Cartoon Network’s virtual world Fusion Fall. Cartoon Network ran an AMAZING number of spots in 10, 15, 30 and 45 second lengths to promote Fusion Fall, but all of Fusion Fall’s advertising was on a single channel, that being Cartoon Network. The shorter spots were placed strategically as bumpers around all show entry end exit points. I can’t cite the exact number, but the amount of Fusion Fall impressions per hour was impressive and more than any other competing site.

The Pixie Hollow and Wizard 101 virtual world commercials were the next heaviest in rotation after Fusion Fall, but for these worlds, they were advertised across multiple channels. Next in line was Build-A-Bearville, Bella Sara, and Funkeys. Each virtual world destination experienced an increase in unique visits to their virtual world but none more than Fusion Fall and Wizard 101 in the November to December 2008 time period. Both of these desitinations experienced an increase in web traffic 3 to 5 times more than before those on air campaigns began. All virtual worlds lost traffic to their sites after the holiday season as advertisement campaigns wound down, all except for Disney’s Pixie Hollow. However, gains remained for seven out of nine of the virtual worlds advertised when measured over a two month period, though only three out of the nine had experienced any significant gains. Out of the collection of these nine virtual worlds, seven companies offered a tangible product that was sold as part of their virtual world service.

Over the summer months, I’ve had the opportunity to check in on a few children’s channels to see what’s being advertised. A new crop of virtual world commercials are running on air this summer. One big surprise to me was MapleStory which is a virtual world that started outside the US. It makes sense to try to reach out to kids during these months to grow an audience base. I’ve been thinking that this might be a better and cheaper way to gain visibility as opposed to winning kids over during the winter holiday season.

Outside of children’s television, I’ve also been keeping a close watch on a number of virtual worlds for kids. Every now and then I’m surprised by how some site just explodes. Moshi Monsters has had my interest most of this summer. This is a UK virtual world for kids that has yet to take off here in the states, but has been doing great at home. I’ve wondered why it has been so successful in the last two months. Only recently did I came across an interview with Michael Smith, CEO for Moshi Monsters on YouTube. (Thanks Joi Podgorny for the tip!) In this interview Michael discusses the growth in visitors and subscribers to his site as a direct response to advertising on TV.

If you’re interested in learning more about the data I have, shoot me an email. One thing is certain though, we should all be prepared to see many more commercials of virtual world advertised to kids in the months, and years, ahead. What used to be a vital part of toy promotion is now expanding to the virtual world as well.

NY Toy Fair 2009 – Cool Tech Find Number 3

Portable entertainment devices for kids have been on an amazing journey over the last five years. Advancements with small video displays, fast and affordable chip sets, and battery technologies that last longer than ever before have brought fascinating possibilities to the marketplace, and to this year’s Toy Fair.

Enter the latest handhelds for kids: The iPix, a portable video player for the preschool set, and the VEO for older children. Both devices were part of a stellar rollout of products from toy maker itoys. The two products are similar in that they both contain a small, backlit video display for watching popular television shows from Cartoon Network, HIT Entertainment, Nickelodeon, and Nelvana. Both have enough onboard memory to hold up to sixteen half hour shows. Onboard lithium ion batteries can last up to six hours on a single charge. While both devices have similar guts on the inside, their exterior form factor is made to appeal to either a younger or older audience. The video choices for each device are also age appropriate for the two different age groups.

So just how do you transfer TV shows onto the iPix and VEO? Each device can be connected to a computer via the USB port. Once connected, a visit to a unique itoys website allows users to purchase their favorite TV shows and transfer them onto their iPix or VEO. The whole experience is similar to that of loading content onto an iPod, but these online tools are customized specifically for itoys products.

The cost of the iPix is just under $70 and half hour television episodes can be purchased for between $2.49 to $2.99 each. The VEO has the exact same pricing structure as the iPix. Watch for these technology toys to become available in June of 2009.

[The following is a brief article from my observations of watching over 3, 000 commercials that target children. It was picked up by Playthings Magazine and is running in their February 2009 issue. I have many more thoughts and hours of edited video to share (teaser clip at end of article). If you’re interested in additional findings, shoot me an email or give me a call.]

Most people use TiVo to fast forward through commercials. For eight weeks this past fall, I fast forwarded to the commercials. Specifically, to commercials aimed at kids.

My curiosity about television ads that air during children’s programming started quite by accident. While incorrectly programming my TV’s digital recording device, I inadvertently found a wealth of new product information being advertised to children. Intrigued, I began to watch what I’d captured.

The numbers game

In any given hour of children’s television programming—especially during shows that air on Saturday or Sunday mornings—you’re likely to find about 10 to 16 minutes of commercials, depending on the station being watched. That’s about 25 to 40 commercials in an hour. During that time, you’ll see ads that promote other children’s television shows, places junior might like to eat, shoes and clothes kids might like to wear … and a wealth of technology products they might like to do just about anything with.

In fact, it would seem that 60 to 75 percent of child-targeted commercial time is dedicated to promoting technology of all types. This includes both electronic and traditional toys, dolls, video games, virtual worlds and websites. As you can imagine, all the big toy names are buying up ad time in bulk; companies like Hasbro, Mattel and Disney, Spin Master, Techno Source, Jakks Pacific, MGA Entertainment, WowWee, Play Along and Crayola are all promoting through television.

Video games grab attention

Having started my experiment just before the holiday season, I found a number of companies I didn’t expect to see in such heavy rotation, like Nintendo, Electronic Arts and UbiSoft—all biggies in the video game world. In that same hour, you were as likely to see as few as two or as many as eight different commercials for Nintendo’s DS or Wii. And because this was during kids’ programming, Nintendo’s campaign didn’t include ads for the Wii Fit or other products primarily for adults.

Some big items that first jumped out at me with technology included toys that require being connected to a computer in order for kids to fully experience their value. Two toys of note were LeapFrog’s handheld Didj or Bandai’s Mega Mission Helmet, which includes a USB cable as part of the play experience. Build-A-Bear Workshop also ran a series of ads to promote a unique virtual world along side its tangible teddy bears. Commercials for other virtual destinations included Disney’s Pixie Hollow, Radica’s Funkeys and Cartoon Network’s own FusionFall, a massively multiplayer online game featuring characters from many of its most popular shows. According to advertisements, animatronic robots also continue to evolve, be it Thinkway’s Wall-E toys, Fisher-Price’s interactive version of Ming Ming from The Wonder Pets, or even Kota the robotic dinosaur from Hasbro’s Playskool division.

And so, after consuming volumes of weekend commercials, I began to develop a sixth sense for advertising in the toy space. No matter when I watched, my newly acquired powers allowed me to notice other product differences across time slots. For example, preschool toys, on the whole, were promoted most heavily during weekday mornings. However, learning products’ ads have a different time slot; they aired during both weekday mornings as well as early/late evenings, presumably after parents have tucked their little ones into bed.

While toy advertising remained largely daytime fare, video games spanned all hours, but even then there were some surprises. Nintendo DS and Wii games’ ads could be found just about any time of day or night. However, commercials for Microsoft Xbox 360 titles only appeared during the day if the title being promoted was also released for the Nintendo Wii. Otherwise, Xbox-exclusive titles didn’t appear at all until later, during the nighttime hours.

And as much as there was to learn about technology products advertised on television, I stumbled upon a unique find regarding what was not being promoted. In all the time I watched, I did not see a single Sony ad. Not one for the PSP. Not for the PS3, nor for any Sony product whatsoever. I’m not sure what this means, but I found this absence odd—and surprising.

The other tech ‘toy’

After looking at so many child-friendly technology-based products, I also started to wonder about cell phones and kids. The number of kids ages 9 to 12 that own a cell phone is growing. Whether that’s good or bad, there’s no denying the trend. I asked myself, after seeing so many great Apple iPhone and iTouch commercials, how long would it be before I start to see similar Apple ads targeting children? Could Apple make a play for the younger set with an ultra-slick tech toy? Or could we also someday see cell phone plans being promoted specifically to kids during children’s programming?

Midnight madness

After the holidays, I noticed some differences in commercials for kids’ products; primarily, almost all of the toy offerings went away, literally evaporating the very first minute into December 25th. However, ads for video games, virtual worlds and web-connected toys did not. The difference between toy product and video game product promotion couldn’t be more striking as I watched in the days and weeks after the holidays. What does this say about the earning potential of technology toys in general? Can toys that are considered “platforms” benefit from ongoing advertising in the same way that video games do?

My exploration only included advertisements found on television, though there are a number of other media outlets where tech products for children can be promoted: online, magazines, radio, movies, email, even in-store events. While it may seem that technology products will be the future “must have” item for kids, I often remind myself that in order for toy companies to successfully benefit from a large investment in technology-based products, large advertising budgets must follow in order to increase exposure, revenues and profits to cover that investment. This might just mean that the economics for tech-free toys do not require as much of an advertising commitment, but product awareness certainly appears to benefit all.

Frankly, I can’t tell exactly what all of this says about the future of technology and kids, but I do spend a lot of time looking at the play patterns of children with traditional toys and how these patterns change when technology is introduced.

I think that if we see more technology at this month’s Toy Fair—more even than in prior years when companies did debut a lot of technology toys—we might well get a glimpse of an answer.