Business
How 'CoComelon' became a mass media juggernaut for preschoolers
Fifty-five years ago, preschoolers were captivated by the TV performance of a fuzzy blue monster, two striped shirt-wearing best friends and a big yellow bird.
Today, in the now-crowded field of children’s media, one big-headed, animated toddler named JJ is running to the top.
Born from YouTube, JJ and his friends in the animated kids’ franchise “CoComelon” represent a new wave of children’s programming. Focused on songs, bright colors and a world with no sharp edges, “CoComelon” has become a children’s media juggernaut, spawning spin-offs, video games, toys, a live tour and a story-time podcast. Although its multimedia approach to kids’ content has helped expand its audience, it has also raised questions about screen time and what kind of content — if any — very young children should be watching.
Reflecting on the brand’s growth, CoComelon General Manager Patrick Reese said the company is thoughtful about the needs of its young audience and its own legacy in children’s media.
“We very much stand on the shoulders of giants in this space, like ‘Mr. Rogers’ and ‘Sesame Street,’” he said. “If you learn to be kind and open in those early years, if you learn that growth mindset way of thinking, that becomes your behavior for the rest of your life. And if we can create an environment and create these various shows and these various different streams of content that just make the world 1% kinder, 5% kinder, 10% kinder … we’re going to seize that opportunity.”
“CoComelon” has indeed taken the lucrative kids media market by storm.
In 2023, “CoComelon” ranked fifth on Nielsen’s list of top 10 overall streaming programs, bested only by the legal drama “Suits,” the Australian animated series “Bluey,” the long-running procedural “NCIS” and the medical drama “Grey’s Anatomy.” Beyond its presence on Netflix, the brand also commands massive engagement on its native YouTube.
“CoComelon” producer Moonbug Entertainment declined to share financial results for the franchise, but parent company Candle Media said Moonbug was the biggest and most profitable piece of its business, which also includes actor Reese Witherspoon’s Hello Sunshine production company.
The market for kids entertainment is “massive,” said Brandon Katz, senior entertainment industry strategist at Parrot Analytics. “It boasts probably the best re-watchability rates of anything in the market. What that represents is an incredibly long tail of engagement for whatever that one project cost.”
The genesis of “CoComelon” dates back to 2006, when commercial director Jay Jeon and his wife, a children’s book author, posted their first video to YouTube of a short cartoon played to music — alphabet-related animations that stemmed from videos they made to entertain their own sons.
By 2017, the videos had started to center on a toddler named JJ with a single blond curl. By 2020, “CoComelon” was the most-watched YouTube channel in the world, with more than 3.5 billion average monthly views, and had attracted potential suitors.
That year, it was acquired by the London-based Moonbug Entertainment, which also bought fellow YouTube children’s program “Blippi.” A year later, Moonbug was acquired by Candle Media, led by ex-Disney executives Kevin Mayer and Tom Staggs, for a reported $3 billion.
For “CoComelon‘s” Reese, who has worked on the franchise since 2018 and saw the dealmaking frenzy, the effect of the acquisitions has been stark.
There is now “CoComelon Lane,” a streaming series on Netflix that follows the adventures of JJ and his friends. In September, Moonbug released a live-action YouTube spin-off called “CoComelon Classroom,” which stars National Teacher of the Year awardee Juliana Urtubey as Ms. Appleberry. In the video series, Urtubey teaches lessons about letters, sings songs and interacts with an animated JJ.
Much of the creative team works at Moonbug’s office near the Grove in Los Angeles’ Fairfax district. A wall with three shelves’ worth of “Blippi” and “CoComelon” toys greet visitors.
“We’ve been able to grow so much faster,” Reese said. “We probably would not have been able to create all of these different shows, create all the different franchise moments that we’ve created, expanded consumer products and goods in the same way.”
But the franchise faces stiff competition in the preschool entertainment space from “Bluey,” which has generated 587 million hours of viewing through July, compared to 218 million hours for “CoComelon” and 45 million hours for “CoComelon Lane,” according to Nielsen data.
That disparity could be due to the difference in how “CoComelon” and “Bluey” are perceived, particularly by parents. Adults will readily admit watching “Bluey” with their kids, noting how the family dynamics feel real and relatable.
But “CoComelon” does have about a 50% co-watching rate with adults, said Staggs of Candle Media. Mayer said he and Staggs have been thanked by parents for their work on “CoComelon,” which provides relief and emotional stability for their kids during times of stress.
“It’s heartwarming, it’s easy to digest,” said Nancy Jennings, a professor at the University of Cincinnati and director of its Children’s Entertainment and Education Research Lab. “There’s not a lot of dialogue that you have to follow, and with the songs too, a lot of the characteristics of the show are attractive to kids in general.”
But even kids’ media is not immune to Hollywood’s recent struggles. Last year’s dual Hollywood strikes and the upheaval in the industry has touched nearly every company in the industry, including Candle Media, which is backed by Blackstone.
“Candle Media has come through a very difficult time, as the rest of the industry has … but as a whole, we’re profitable,” Mayer said. “And Moonbug is the main driver of that, and is, in and of, itself, very profitable too.”
The company must also grapple with concerns about children’s screen time.
The American Academy of Pediatrics recommends that families avoid screen media, other than video-chatting, for children younger than 18 months, and that children ages 2 to 5 should get only an hour of screen time a day. The primary audience for “CoComelon” is kids ages 0 to 4.
Research, though largely correlational, has shown that heavy exposure to screens at early ages is associated with inattention and impulsive behaviors, said Drew Cingel, an associate professor in UC Davis’ communication department who directs the university’s human development and media lab. Programs with bright colors, repetition and songs grab hold of children’s attention, he said.
“There are 24 hours in a day, and when you’re a developing child, there’s a lot of things you need to do in those 24 hours in order to get you the inputs you need to develop normally and healthfully,” he said. “Anything that takes up a sizable portion of those 24 hours can displace the time that could be spent practicing these developmental capabilities.”
Reese said that the company works with educational consultants and that there are ways for families and children to interact with “CoComelon” beyond screen time, such as through books and live tours. The company says it takes seriously its responsibility of teaching and entertaining children for the amount of time they spend with “CoComelon” content.
“It’s for every family to decide for themselves what their level of comfort is with any activity,” Reese said. “We want to create the best environment and the best tools, and the most entertaining, enriching content that we possibly can. And use us how it makes you happy.”
Every episode must incorporate music and life skills, said Rich Hickey, chief creative officer. A so-called story trust meets weekly to discuss ideas, and themes revolve around milestones and lessons that families experience on a regular basis.
“You really want to meet kids and families where they’re at,” said Hannah Kole, senior development executive. “We really want to make sure that those are relatable experiences that we know kids are going through.”
That can include bath time, eating vegetables or experiencing something new for the first time.
“Every day, we’re reminding ourselves that we’ve got a responsibility to a huge audience, globally,” Hickey said. “We’re trying to make a meaningful connection, that parents and caregivers will trust us that we’re going to make content that’s enriching and warm and safe for their children.”
Business
U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders
The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.
The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.
Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.
The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.
The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.
Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.
“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.
The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.
Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.
Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.
Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.
Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.
Business
California-based company recalls thousands of cases of salad dressing over ‘foreign objects’
A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”
The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.
Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.
None of the 42 locations where the product was sold were in California.
Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.
“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”
The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.
The company recalled the following types of salad dressing:
- Creamy Poblano Avocado Ranch Dressing and Dip
- Ventura Caesar Dressing
- Pepper Mill Regal Caesar Dressing
- Pepper Mill Creamy Caesar Dressing
- Caesar Dressing served at Costco Service Deli
- Caesar Dressing served at Costco Food Court
- Hidden Valley, Buttermilk Ranch
Business
They graduated from Stanford. Due to AI, they can’t find a job
A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.
The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.
When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.
Top tech companies just don’t need as many fresh graduates.
“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”
While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.
Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.
“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”
The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.
Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.
“The industry for programmers is getting very oversaturated,” Akgul said.
The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.
Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.
It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.
In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.
Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.
Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.
A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.
“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”
To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.
Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.
Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.
Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.
As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.
“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”
After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.
Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.
“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”
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