Company Profile - Moonbug

Moonbug reaches for the stars

Founded just four years ago, in 2018, Moonbug Entertainment has enjoyed a meteoric rise to fame, with some of its kids’ properties quickly becoming among the biggest and most successful in the world. Simon Philips, managing director Global Consumer Products, and Francesca Romana Gianesin, head of Consumer Products EMEA/ANZ, spoke to Toy World’s Rachael Simpson-Jones ahead of Moonbug’s debut BLE appearance, about the company's CP strategy, growth plans and much more.

Simon Philips

“When Moonbug was conceived, it was done so with an understanding of how kids actually consume content,” explains Simon Philips, former EVP of Disney Consumer Products, when asked about the company’s background. “Historically, many large media companies were placing kids’ content not where kids actually were, but where it needed to go in order to satisfy legacy businesses. Moonbug, on the other hand, saw that kids were consuming content digitally, on a constant basis. Audience engagement was (and is) 52 weeks a year. New, exciting and relevant content is demanded all the time, be it watchable on a tablet, TV, smartphone or computer. We saw the hunger for choice among today’s children, and so Moonbug set out to identify prominent kids’ IP that resides on YouTube, in the digital space, which we could optimise, expand upon and distribute far more widely. Of course, we also wanted to create strong consumer products programmes around the franchises that we built.”

Currently, Moonbug’s three key focuses are CoComelon, Blippi and Little Angel. CoComelon and Blippi were both acquired in 2020, while Little Angel is a more recent addition to the portfolio, having been acquired in February of this year. At the time, Renè Rechtman, Moonbug Entertainment’s co-founder and CEO, said of the property: “Little Angel is loved by families across the globe. Its irreverent humour and relatable world make it a strong addition to our IP portfolio. There continues to be a tremendous demand for great, value-based kids’ content that connects with a global audience, and this acquisition represents an important opportunity for us to build another global entertainment franchise.”

The company’s other IPs include Little Baby Bum, My Magic Pet Morphle, Supa Strikas, Go Buster, Playtime with Twinkle, Gecko’s Garage, ARPO, Oddbods, Lellobee City Farm and many more. All in, Moonbug’s kids’ properties rack up somewhere in the region of 9b views a month on YouTube alone. To put this in perspective, you’d need to add the next four biggest kids’ content providers on YouTube together to generate a similar number.

Once it acquires an IP, Moonbug then sets its sights on rapidly scaling the brand using data to increase and enhance the content, distributing it more broadly across the company’s global distribution network and creating new avenues for interaction through licensing and merchandising, original productions and brand partnerships. One of the most important factors in growing a property’s reach is extending the language footprint, Simon notes, using CoComelon as an example. Prior to its acquisition, 100% of CoComelon’s views were in the English language. However, content distribution data shows that there are huge opportunities to increase CoComelon’s audience by not only creating new content, but by dubbing it into local languages too, before optimising it for different geographic regions.

“Moonbug is also building brand affinity by creating bespoke episodes for different regions,” says Francesca Romana Gianesin, who joined Moonbug in May after 20 years with The Walt Disney Company, in an appointment she says sends a signal to the industry of the company’s plans for major international growth. “We’re developing a special adventure series as part of our show Blippi. For the first time ever, Blippi will be travelling to iconic and family-friendly places in France and Italy, where he can get curious, learn more about the country's culture and history, and of course have fun. This will bring us even closer to consumers in those regions.”

Francesca Romana Gianesin

Francesca also tells me that, more than any other company she’s worked at, Moonbug is two things: ‘numbers obsessed’, and incredibly agile. Moonbug has access to reams of real-time data showing who is watching the content, which provides a depth of audience understanding not – somewhat surprisingly, given the nature of the business - commonly seen among media companies. This data isn’t kept locked away either, for Moonbug’s eyes only. It can be (and is) widely shared with licensees, retailers and anyone else who wants to see it. As an example of Moonbug’s agility, the company has begun filming Blippi Wonders in Europe on location just three months after Francesca and the wider team first developed the concept. These elements make Moonbug a truly unique kids media company, and one Simon and Francesca are very proud to be a part of.

In terms of consumer products, the strategy is simple: to work with best-in-class partners and licensees capable of developing and delivering the best possible products to consumers, wherever they are. In alignment with the internationalisation of its properties, Moonbug is also expanding the reach of its products. This is a big focus for 2023. Francesca says there are opportunities to harness this market across the globe, from Europe and Australia to Brazil, Mexico, India, Japan and China. Lastly, Moonbug is penetrating the Infant and Pre-School categories ever deeper, with an eye on taking ownership of this space via licensed products across all segments of the marketplace.

CoComelon, which has proved to be an astonishing pre-school licence in the toy sector, is the mostwatched kids brand on YouTube globally, generating over 4.3b average monthly views and boasting more than 152m YouTube subscribers. I was keen to find out how Moonbug manages such enormously successful properties, especially when so many potential licensors want a bite of the cherry. I put this question to Simon.

“Strategically and carefully,” he replied. “We know that when a child is excited about a property, they want to own a physical manifestation of it. They also don’t want to wait for it, especially when you consider that pre-schoolers age out of IP at a particular rate. If you don’t provide the best licensed product, then you’re not allowing fans to experience the show via play. Moonbug always looks for the best product executions from the best licensees, as well as the broadest product offering too.”

CoComelon product hit shelves for Christmas 2020. Since then, Moonbug has assembled a raft of licensees it says would be the envy of any global licensor: current toy partners include Hasbro, Spin Master, Just Play, Jazwares, Funko, VTech, Tomy, Jada, Bandai and more, while apparel is covered by Centric and Aykroyd & Sons. FMCG partners include Johnson & Johnson and Church & Dwight.

“Any licensor would be ecstatic to secure such a range of licensees,” enthuses Simon. “Moonbug has done so with a brand that was completely new to the consumer market, and in a space rife with initial scepticism over whether kids would convert from consuming content on YouTube to consuming content at retail. But today, when we talk to retailers, they’re interested in understanding our digital optimisation strategy for the content, instead of, say, the timeslot it occupies on a linear channel or which paywall it falls behind.”

Indeed, accessibility is a massive priority for Moonbug. The goal is broad distribution of all its content, wherever kids are. When held up against that of other content providers, this strategy is markedly different in its approach: many are placing their content behind paywalls or subscription services which limit the size of the audience. Moonbug, meanwhile, is maximising its audience by placing its content everywhere kids are. Moonbug’s shows can be seen on more than 150 platforms globally, including YouTube, Netflix, Amazon Prime Video, Sky, Super RTL, BBC iPlayer, HBO Max, Tencent, Youku and Roku, in no less than 32 languages (and counting). The company has also just signed a new agreement with the BBC which will allow Moonbug to share new content and IPs with BBC audiences. The agreement includes new episodes of CoComelon as well as Digley and Dazey, plus IPs new to the BBC including Blippi Wonders, Little Baby Bum, Gecko’s Garage, and Lellobee City Farm, which will be available on BBC iPlayer. Gecko’s Garage will also be available on CBeebies, the BBC’s free-to-air pre-school children’s channel.

“It wasn’t easy to convert digital content into global franchises, but this is a consumer trend that’s here to stay and other companies will surely follow our lead on this,” says Francesca.

Simon agrees, stating that digital content isn’t the future – it’s very much the present. He says: “The reality today is that kids consume content wherever they want, whenever they want. We’re not in a linear world anymore, one in which kids sit in front of a TV and watch a programme whose scheduling has been decided upon by somebody else. Yes, many are still consuming it by watching a TV, but that content is coming to them via a platform that offers them freedom of choice. This is what Moonbug is all about. Look at the UK: our content is on CBeebies, iPlayer, Netflix, YouTube, Sky Kids... We go where the kids are. We’re forging a very different path to those reducing access to their content by placing it behind paywalls. We’re saying ‘Hey! Here’s our content, come and watch it’.”

Having exhibited at a trade show for the first time in Vegas earlier this year, Moonbug Entertainment makes its Brand Licensing Europe debut from 20th- 22nd this month. Referred to by Francesca as ‘the bridge to the licensing community’, the show is a very important feature of the company’s calendar this year. CoComelon, Blippi and Little Angel will be the big focuses at the show: the CP programme for Little Angel will be kicking off in autumn 2023, making BLE perfect timing for anyone looking to get on board. The team will also be seeking out fresh opportunities in FMCGs and Apparel, as well as Nursery and Baby Products. Moonbug wants to be present at key moments in a child’s life, starting from those very first days and weeks right up to the pre-school years and beyond. That means securing licensing deals across everything from nappies and vitamins to bedding and plush.

“What I personally look for in licensing and retail partners is excellence – I’m an excellence freak,” laughs Francesca. “I want to see that excellence in everything they do. Our partners should share our ambition and passion, and never stop being innovative. And our retail partners also need to have a keen eye on pricing. We can’t underestimate current economic conditions and the pressures families are under each month. Moonbug licensed products need to be both the highest quality and a reasonable price.”

Simon, meanwhile, is hoping to replicate the company’s Vegas experience. At the US licensing show, it was able to present what it does and the way it operates to the wider industry for the first time. Visitors to Moonbug’s stand (A131), whether licensee or retailer, will be able to look over the company’s extensive data, hear success stories, and leave with an excellent understanding of the opportunities presented by both Moonbug and the digital space. Some retailers, especially continental European ones, have yet to experience the sales linked to digital first properties that those in the UK and US have. BLE provides an opportunity to work closely with these retailers on why they should be looking at digital properties, using the data that Moonbug provides unparalleled access to.

Behind the scenes, Francesca is also keen to point out that Moonbug continues to hire some of the ‘best in the [licensing] business’. Helen Genia was appointed Global Hardlines director for Moonbug’s London office back in May, fresh from her eight-year stint at Mattel as head of Licensing UK, Europe, Middle East & Russia and Hardlines EMEA. Janice Lam, meanwhile, also took up the role of Global Hardlines director, based in Moonbug’s New York office. Janice joined from eOne, where she was integral in the strategic growth and expansion of global hit brands’ licensing business. Both these roles report through to Duncan Tate, global head of Hardlines. Prior to these appointments, Danny Spronz – formerly managing director EMEA at PocketWatch - was appointed Head of Global Loyalty & Promotions and EMEA Retail Development, and Susan Vargo was appointed head of Live Events. Before joining Moonbug, Susan oversaw global creative development for Nickelodeon live entertainment including stage adaptations, theme park programmes and resort entertainment. As Francesca puts it: “Only when you have the best, can you deliver the best.”

Talent recruitment continues apace, I’m told. This month, a new director of Apparel, Accessories and Footwear joins the team, followed by a new director of Publishing and New Business Development, as well as a new director of FMCG.

Moonbug is clearly attracting the right people in their droves. Francesca’s decision to join the company was in large part fuelled by its vision and ethos, set forth by the company co-founders, René Rechtman and John Robson, who is also COO. In her interview, she recounts, René told her that while most kids content helps children develop so-called ‘hard skills’ – counting, spelling, colour and shape recognition, and so on – Moonbug’s content had to do something more: it had to help kids develop resilience, compassion, empathy – to be able to recognise and manage their emotions. When you consider the world today’s kids are growing up in, with its conflict, climate change, economic hardships and more, you can see why René and John feel this is so vital. That’s why Moonbug content covers the beauty of family and friendships, diversity and acceptance, solving problems and enjoying the little things.

“Moonbug’s ethos really speaks to me: how good would it be to live in a world in which people are more empathic, emotionally conscious and mature?” muses Francesca. “Other content companies have failed to identify the importance of this, to be honest. Moonbug is the first to highlight that we have a responsibility to help our kids manage their emotions in the right way – and produce better citizens in the future. And I want the people reading this to join us on this amazing mission too.”

For such a young company, Moonbug Entertainment’s growth thus far has been nothing short of extraordinary, and it’s clear from speaking to Simon and Francesca that they feel there’s a huge amount more to come. Can growth of this magnitude be maintained? In Simon’s opinion, the answer to that question is an emphatic yes.

“We’re only just scratching the surface in English speaking markets, and we’ve yet to enter non-English speaking markets in a meaningful way,” he points out. “We’ve been busy building our team and laying the foundations since our CP programme rolled out in 2020. Our CP business today is predominantly in the UK, US, Canada and Australia – all English-speaking markets – and has predominantly centred on CoComelon and Blippi. The majority of our licensees are still only just introducing their products too, meaning there’s significant growth ahead both in terms of category and region. There’s also IP expansion to come. We’re focused on optimising CoComelon right now, and exploring new areas with Blippi, and that’s before we’ve even properly introduced Little Angel, which comes out next year. Moonbug has multiple avenues of expansion to choose from and significant growth ahead. It’s a very nice position to be in.”

To find out more or to book an appointment with the Moonbug team at BLE 2022, visit www.moonbug. com or email Duncan Tate, global head of Hardlines: duncan.tate@moonbug.com.