As the battle for Warner Bros. Discovery between Netflix and Paramount is reignited, one thing’s for sure: Kids media is bracing for a major power shift either way.

UK-based research firm The Insights Family has shared new data to paint a picture of how the two acquisition scenarios would stack up.

Potential for linear stability

If Netflix’s accepted bid for WBD’s studio assets—and not its linear channels—goes through, it will mean a lot of power in the kids space will consolidate primarily into SVOD. The Insights Family’s VP of research solutions Adam Woodgate says this will mean that discoverability, first-run premieres and franchise-building will all shift into a streaming-dominant ecosystem. 

Meanwhile, Paramount’s hostile-takeover bid for all of WBD’s assets including the linear networks would mean that legacy channels Nickelodeon and Cartoon Network would live under one roof. “Paramount would have the opportunity to stabilize linear kids’ viewing in markets where it remains critical, [such as] India, Southeast Asia and the Middle East and Northern Africa,” Woodgate notes. 

The Insights Family examined the reach of kids platforms based on 20 continuously surveyed countries. In the last month, Nickelodeon was used by 13% of three- to 18-year-olds and ranked seventh overall among the channels and services kids used. Also from the Paramount roster, Nick Jr. reaches 4% of kids, while its FAST platform Pluto TV corners 3% of kids.

An acquired WBD would buoy Paramount’s linear reach—namely with iconic kidsnet Cartoon Network, which reaches 13% of kids, just behind Nick to rank eighth. And that’s not including other kid-friendly channels from the WBD stable, like Animal Planet (6%), Discovery Kids (3%), Cartoonito (2%) and Boomerang (2%). 

Multi-platform competitor

Compared with Netflix’ more laser-focused streaming strategy, Paramount’s all-assets bid would operate more powerhouse assets across diverse market segments: linear (Nickelodeon, Cartoon Network, Discovery Kids), streaming (Paramount+, HBO Max), theatrical (WB Pictures and Paramount Pictures) and FAST (Pluto TV)—not to mention the force of licensing, consumer products and gaming represented by a combined Nickelodeon, WB and DC.

“For kids’ media, this represents a structural shift,” Woodgate underlines. “A single company would control the world’s largest combined linear, SVOD, AVOD and theatrical kids’ ecosystem.”

There would also likely be more diversified competition in the kids media ecosystem in the case of a Paramount takeover. According to Insights Family data from 21 continuously surveyed countries in the past month, Netflix is the second-biggest service for kids overall, at 41% usage, putting it far ahead of most kids TV brands. Therefore, combining Netflix and WBD would shrink the top end of the market to two dominant players: Netflix and Disney, notes Woodgate. “Paramount plus WBD adds a second diversified giant rival to Disney, with Netflix remaining strong, but now facing a competitor with linear reach, preschool depth and a growing FAST channel.”

Consolidating kid-favorite IPs

The Insights Family also tracked the characters that three- to 18-year-olds love most in 21 continuously surveyed countries—and it shows that if Paramount wins, it would dominate the kids market with access to familiar WB faces.

WB brands Harry Potter (22%), Superman (21%) and Batman (18%) all managed to crack the list of kids’ top five favorite characters. Meanwhile, Paramount’s SpongeBob SquarePants (16%) came in at the fifth spot. (Spider-Man took the first spot in the rankings, at 23%).

More WB classics are found in the top 20 favorite characters, with Tom & Jerry (pictured) at number 13 (12%) and Scooby-Doo at number 20 (9%).

“Expanding to the top 50 characters, 13 total properties are WBD- or Paramount-owned,” Woodgate adds. “This is not simply an IP library—it is a global franchise engine spanning preschool, middle grades, teen and family.”

Ultimately, a Paramount takeover of WBD would create the single biggest multi-platform kids and family business in the world, says Woodgate. It would be one with linear reach, diverse streaming touchpoints and the deepest franchise bench outside Disney, he says. 

“For kids, parents and the industry, the next year will determine whether the future of children’s content is shaped primarily by streaming, or by a revitalised multi-platform giant with Nickelodeon and Cartoon Network at its core.”