WEBVTT - Making Sense of Sensical, a New Digital Video Hub for Kids

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<v Speaker 1>It wasn't long ago in my home and when it

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<v Speaker 1>came time to find a movie the whole family could

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<v Speaker 1>watch together. Making the decision involved a visit to the

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<v Speaker 1>common Sense Media website. There you can find detailed guidelines

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<v Speaker 1>on how appropriate a wide range of titles were for

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<v Speaker 1>kid viewers. Now, common Sense is stretching in a new direction,

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<v Speaker 1>launching over the summer of free, ad supported streaming service

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<v Speaker 1>just for children with the brand name Sensical. Leading this

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<v Speaker 1>venture is the CEO of common Sense Networks, Eric Burger,

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<v Speaker 1>who joins me today to help make sense of Sensical

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<v Speaker 1>the first award from our sponsors. Welcome back to strictly

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<v Speaker 1>Business where we're talking with Eric Burger, CEO of common

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<v Speaker 1>Sense Networks. Hey, aren't good to talk to you. As always,

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<v Speaker 1>you and I go back to your days at Sony Pictures,

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<v Speaker 1>where you were a real pioneer in the streaming space,

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<v Speaker 1>leading the way on one of the earliest brands to

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<v Speaker 1>make a go at premium streaming entertainment at Crackle. So

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<v Speaker 1>no doubt this sets you up nicely for this new gig.

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<v Speaker 1>Oh it does. There's just tremendous learnings from from doing that. Obviously,

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<v Speaker 1>I'm a believer in AD supported, and I think there's

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<v Speaker 1>a place for services like that in everyone's personal bundle,

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<v Speaker 1>and you see that playing out very much so in

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<v Speaker 1>the market today. But also there's great lessons around psychographics.

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<v Speaker 1>You know, everyone gets very focused on demographics in an

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<v Speaker 1>ad world, and that makes sense, but just understanding specifically

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<v Speaker 1>what people are looking for, what their motivations are, with

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<v Speaker 1>their beliefs are, is critical, and that's a big part

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<v Speaker 1>of the opportunity I saw here. There is a shift

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<v Speaker 1>in consumption that's happening, as I saw when I was

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<v Speaker 1>at Sony, the shift to to streaming UM into the

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<v Speaker 1>living room. Uh, but the shift and consumption for kids

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<v Speaker 1>is profound, uh, and it's very different. My kids are

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<v Speaker 1>a little bit older now, but they've moved to open

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<v Speaker 1>user generated platforms that are not specifically designed for kids,

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<v Speaker 1>and eight of them are spending an hour a day

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<v Speaker 1>on these on these services where the content is not

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<v Speaker 1>necessarily appropriate for their age, the advertising is not appropriate,

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<v Speaker 1>it's algorithm driven, and you know, parents are overwhelmed with

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<v Speaker 1>what to do about this, and you know, I think

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<v Speaker 1>this is another opportunity in a place to step in.

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<v Speaker 1>So talk a bit more about what the play is here.

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<v Speaker 1>What sensicle is what content it brings to the table. Yeah,

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<v Speaker 1>so we've borrowed you mentioned common Sense Media and they've

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<v Speaker 1>been evaluating content for almost two decades and we've borrowed

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<v Speaker 1>and adapted their ratings intellectual property that's based on age

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<v Speaker 1>appropriateness and child development stages, and we've put that and

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<v Speaker 1>applied that to short form video, digital first video, some

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<v Speaker 1>studio video as well. And UM created this industrial process

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<v Speaker 1>for rating and curating content, and we're out there rating

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<v Speaker 1>and curating a lot of content that is in line

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<v Speaker 1>with where kids are today. It gives them another opportunity

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<v Speaker 1>to watch the content that they want to watch in

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<v Speaker 1>a type of environment that they're used to. But it's

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<v Speaker 1>all UM safe. It's beyond safe. It's healthy, it's got

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<v Speaker 1>learning attributes for it so parents can feel confident, and

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<v Speaker 1>it's free and accessible. So it's an about services on

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<v Speaker 1>all devices. Will have fifty plus topic based channels, will

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<v Speaker 1>have three live channels, and will have an opportunity for

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<v Speaker 1>kids and parents to favorite things and make their own channel.

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<v Speaker 1>And as far as the I P itself, are these

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<v Speaker 1>gonna be titles that kids are familiar with? Is there

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<v Speaker 1>any original content it's very familiar with. So it's a

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<v Speaker 1>combination of digital first content and studio content. You know,

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<v Speaker 1>on the studios we have people like Sesame Workshop and

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<v Speaker 1>Albana and nine Story and Jim Henson and Tell Thomas

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<v Speaker 1>and Barbie Vlog and very familiar brands that kids and

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<v Speaker 1>families are used to UM but are but meet our

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<v Speaker 1>criteria obviously UM. But then we also have many, many

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<v Speaker 1>digital first creators and some of them are very big.

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<v Speaker 1>The kids know Pink Thong, super Simple Songs, Mother Boost, Club,

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<v Speaker 1>Bounce Patrol. But some of them are these hidden gems

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<v Speaker 1>that aren't caught up in the algorithms of some of

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<v Speaker 1>these services, and we've found them. But all told, I think, uh,

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<v Speaker 1>it's over about three billion views last month of the

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<v Speaker 1>creators whom we've licensed, so there's a lot of activity there.

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<v Speaker 1>The key is to know what's the good stuff. You know,

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<v Speaker 1>parents just don't have the tools or the wherewithal to

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<v Speaker 1>find out or separate what is healthy and what is

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<v Speaker 1>not healthy from a content perspective. So we've done that.

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<v Speaker 1>So to answer your question, in the first instance, it's

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<v Speaker 1>all licensed content that we're ingesting more system and publishing

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<v Speaker 1>UM and over time as we learn more about the data,

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<v Speaker 1>what's working. Is it science for nine year old? Is

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<v Speaker 1>it sports for six year olds? We'll have the tools

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<v Speaker 1>and the information to use more original programs. Back up

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<v Speaker 1>for me if you will. I'm curious what it was

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<v Speaker 1>like when Common Sense came to you, because they're not

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<v Speaker 1>obviously known in the video streaming space. There are not

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<v Speaker 1>for profit and here you are leading a profit for

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<v Speaker 1>profit extension. So what was their pitch to you? The

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<v Speaker 1>pitch was that there parents had been coming to them.

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<v Speaker 1>You know, many ten million people a month they use this.

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<v Speaker 1>They're six of schools with their Digital Citizenship curriculum. They

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<v Speaker 1>have a reach through all of these devices and partnerships

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<v Speaker 1>like Apple, Sky and the Comcast two million people a month.

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<v Speaker 1>And their pitch was their parents are coming to them

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<v Speaker 1>and saying what about short form, what about these open platforms?

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<v Speaker 1>What can we do about this? And that there was

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<v Speaker 1>a way to activate this very passionate base towards this

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<v Speaker 1>other media. And you know, they have been looking at

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<v Speaker 1>this issue for years and looking at models like nat

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<v Speaker 1>GEO or Smithsonian that had put for profit media extensions

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<v Speaker 1>in front of a nonprofit that approved value back to

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<v Speaker 1>the nonprofit but are you know, independent media organizations. And

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<v Speaker 1>I just again, I had seen this opportunity in this

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<v Speaker 1>progression of kids moving to these platforms over time, But

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<v Speaker 1>how do you start How do you start a service

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<v Speaker 1>in one I mean, with what's going on in the world.

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<v Speaker 1>You need to have the brand permission, you need to

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<v Speaker 1>have a built up audience base, and you need to

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<v Speaker 1>have something unique in terms of the i P. The

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<v Speaker 1>i P being the ratings and the child development guidelines.

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<v Speaker 1>And that's what I saw. That was a pitch, That's

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<v Speaker 1>what I saw in the opportunity. And I totally get

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<v Speaker 1>what you're saying in terms of the opportunity to attract kids,

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<v Speaker 1>but the reality is as far as I could see,

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<v Speaker 1>and and look, there's other ventures out there that target

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<v Speaker 1>kids with you know, kids only streaming services, but the

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<v Speaker 1>overwhelming majority of the viewing is already happening on the

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<v Speaker 1>big platforms where they may not be well served by

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<v Speaker 1>the algorithms or whatnot, but they're there. So is the

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<v Speaker 1>central challenge for sensical sort of carving out a place

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<v Speaker 1>on people's iPhones and iPads to watch in a different

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<v Speaker 1>app than they usually do. It is and and in

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<v Speaker 1>the living room by the way rights it is, and

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<v Speaker 1>I think you just alluded to this. It's apparent play. Initially,

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<v Speaker 1>the customer acquisitions the parents. The retention is the kids.

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<v Speaker 1>The kids this once they get there. But you have

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<v Speaker 1>you know, we've done study after study after study common

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<v Speaker 1>sense and and for this offering, and of parents say

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<v Speaker 1>they're frustrated with what's available to them. Um, they just

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<v Speaker 1>don't have the tools and the wherewithal to do something else.

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<v Speaker 1>They want what's better for their kids, and they want

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<v Speaker 1>educational values in the content that they're watching. They want

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<v Speaker 1>to see role models. Um, they want learning based content

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<v Speaker 1>based on topics of interest to their kids, and they

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<v Speaker 1>just want to know that it's safe and backed by

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<v Speaker 1>a third party. It comes back over and over again

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<v Speaker 1>in every study we do. So the key is to

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<v Speaker 1>leverage the audience that we have, leverage the brand that

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<v Speaker 1>we have, and to put something in front of parents

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<v Speaker 1>and give them the tools, uh to to let them

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<v Speaker 1>have the experience that they're asking for. One of those

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<v Speaker 1>tools is the parent zone aspect of what you're doing,

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<v Speaker 1>which is describe how this you know, I think really

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<v Speaker 1>speaks to what is core to the sensical pitch, which

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<v Speaker 1>is making parents feel safe it's pretty amazing. Actually, we

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<v Speaker 1>you know every UM I mentioned this industrial process. So

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<v Speaker 1>we have a person watch and rate and tag every

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<v Speaker 1>video of every show, and there's hundreds of right area

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<v Speaker 1>that go into it, and the criteria are learning attributes

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<v Speaker 1>like math and science and making and moving UM. But

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<v Speaker 1>there's also social and emotional criteria that go into it,

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<v Speaker 1>like compassion and curiosity and perseverance, and then there's hundreds

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<v Speaker 1>of topics that go into this as well. So we

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<v Speaker 1>have all of that metadata tagged in the content, and

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<v Speaker 1>we combine that with the consumption of what the kids

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<v Speaker 1>are watching and generate these learning reports for parents in

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<v Speaker 1>the parents zone, so they know and they can look

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<v Speaker 1>at it two weeks. They know, this is the videos

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<v Speaker 1>that my child watched along the learning scales math, science, making, moving,

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<v Speaker 1>but this is also what they watched in terms of

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<v Speaker 1>topics like did you know your child spent three percent

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<v Speaker 1>of their time watching dinosaurs or watching sports or watching

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<v Speaker 1>cooking UM. And so they get this way to not

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<v Speaker 1>only know what their kids are learning on the service,

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<v Speaker 1>but to engage with them further, to extend the conversation

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<v Speaker 1>and the learning experience with them. And it's a very

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<v Speaker 1>differentiated there's nothing like that. Yeah, I mean it almost

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<v Speaker 1>sounds like you're describing a curriculum with an aspect that

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<v Speaker 1>is like a parent teacher conference telling us what our

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<v Speaker 1>kid is absorbing exactly. Yeah, no, that's exactly exactly right.

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<v Speaker 1>And and um, and you can go as deeper, not deep,

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<v Speaker 1>as you want to these reports. You can dip in,

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<v Speaker 1>you can dip out. Um, they're there. They have a

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<v Speaker 1>seven day look back or a thirty day look back

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<v Speaker 1>at what your child is watching. And again it's not

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<v Speaker 1>too we have time limits, of course, but this isn't

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<v Speaker 1>about um, you know, monitoring or cramping down on screen time.

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<v Speaker 1>This is a little bit about embracing what your kids

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<v Speaker 1>are learning from this. And that's one of the big differentiations.

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<v Speaker 1>It's not just safe the content. We say healthy in

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<v Speaker 1>that there are learning attributes and a learning promise here

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<v Speaker 1>and and that's great for parents to take advantage of

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<v Speaker 1>those twos. But what's interesting about your pitches, Unlike just

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<v Speaker 1>about every other streaming service out there, you're sort of

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<v Speaker 1>proudly not algorithm driven. When you know, streaming, we're told

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<v Speaker 1>is all about the algorithms and driving you zeros to

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<v Speaker 1>get more and more engaged so how do you reconcile that.

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<v Speaker 1>I know it is um. It is handcrafted and put

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<v Speaker 1>together and it needs to to give that right experience.

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<v Speaker 1>But we put a lot of thought into these programmed channels.

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<v Speaker 1>I mentioned there's fifty channels on the service and that

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<v Speaker 1>will just continue to grow, and those are based on

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<v Speaker 1>these topics and passion areas. So, um, you know the

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<v Speaker 1>problem on the algorithm services as they go down the

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<v Speaker 1>rabbit hole, and oftentimes that rabbit hole doesn't end well.

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<v Speaker 1>And this we say is the safe rabbit hole. So

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<v Speaker 1>if you like live action and how to content like

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<v Speaker 1>sports or drawing or dance or cooking or d a

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<v Speaker 1>y or building, you know that's there for you. Um.

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<v Speaker 1>But if you're passionate about dinosaurs or animals or video

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<v Speaker 1>games or out of space like those are there for

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<v Speaker 1>you too, again thoughtfully programmed. But then the fundamentals of

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<v Speaker 1>preschool are also there, so the reading, the math, the science,

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<v Speaker 1>the history, music, making moving, positive messages and role models.

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<v Speaker 1>Those playlists are there and again laid in in a

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<v Speaker 1>way that kids can go down that that rabbit hole,

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<v Speaker 1>but in a safe way. It's just not an Albert,

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<v Speaker 1>It's it's a known quantity of what's going to come next. Well,

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<v Speaker 1>another a word that comes up when you're talking about

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<v Speaker 1>the safety factor and kids is the advertising, which, hey,

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<v Speaker 1>it's great that you're a free service, but don't parents

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<v Speaker 1>get a little skittish about any kind of advertising and

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<v Speaker 1>how are you keeping that part safe? Yeah, and you

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<v Speaker 1>can imagine this was a really hot topic for common

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<v Speaker 1>sense media that has a lot of thoughts on what's

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<v Speaker 1>going on with advertising for kids in the world. But um,

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<v Speaker 1>we spent a lot of time developing best practices here

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<v Speaker 1>and adapting a lot of the practices from television that

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<v Speaker 1>just don't exist in digital. So there are things like,

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<v Speaker 1>first of all, vetting the advertisement just like we've got

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<v Speaker 1>all the content, to make sure that it's age appropriate

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<v Speaker 1>for each of the different segments of the service. UM.

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<v Speaker 1>And there's rules like frequency caps and the volume of

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<v Speaker 1>ads within a pod and the distance between the pod.

0:12:58.080 --> 0:13:01.320
<v Speaker 1>But the big things are category exclusions. You know, there's

0:13:01.360 --> 0:13:04.520
<v Speaker 1>no sugary foods and drains, there's no fast foods, there's

0:13:04.520 --> 0:13:07.680
<v Speaker 1>no theme parts UM. And the other two things that

0:13:07.720 --> 0:13:12.080
<v Speaker 1>are really important are the separation of content from the advertising.

0:13:12.240 --> 0:13:13.920
<v Speaker 1>This is one of the biggest things that you don't

0:13:13.960 --> 0:13:16.800
<v Speaker 1>see in digital m that you've seen on TV for

0:13:16.840 --> 0:13:20.320
<v Speaker 1>a while. So it's both separation in terms of we

0:13:20.360 --> 0:13:22.360
<v Speaker 1>are now moving to an ad break and making that

0:13:22.440 --> 0:13:25.800
<v Speaker 1>really clear for kids because they can't distinguish, but also

0:13:25.880 --> 0:13:30.040
<v Speaker 1>not doing content blending advertising blended into the content. These

0:13:30.120 --> 0:13:34.120
<v Speaker 1>levels of consumerism are very prevalent in digital media today,

0:13:34.200 --> 0:13:37.120
<v Speaker 1>where the host is pushing the ad or doing unboxing

0:13:37.240 --> 0:13:40.920
<v Speaker 1>videos and for a kid, they can't distinguish, and it

0:13:41.000 --> 0:13:44.920
<v Speaker 1>has some really poor role model and character traits that

0:13:45.040 --> 0:13:47.600
<v Speaker 1>come out of um that type of content that we've

0:13:47.800 --> 0:13:50.520
<v Speaker 1>completely avoided on both the licensing side and the way

0:13:50.520 --> 0:13:53.880
<v Speaker 1>that we're doing You mentioned ad breaks. It's also a

0:13:53.920 --> 0:13:57.720
<v Speaker 1>good reminder that, and this is very sort of sensical,

0:13:57.800 --> 0:14:01.600
<v Speaker 1>that it's not just an on demand platform that there

0:14:01.640 --> 0:14:04.880
<v Speaker 1>are linear streams. I mean, is that kind of like

0:14:05.440 --> 0:14:08.920
<v Speaker 1>essential for any streaming launch these days? It seems like

0:14:08.960 --> 0:14:12.079
<v Speaker 1>it is. Yeah, But the but the consumer, you know,

0:14:12.160 --> 0:14:15.400
<v Speaker 1>it's it's funny because what's old is new, sumers are

0:14:15.440 --> 0:14:18.160
<v Speaker 1>are eating it up. There's times where you just want

0:14:18.160 --> 0:14:21.080
<v Speaker 1>to lean back experience, and that's true for kids and

0:14:21.160 --> 0:14:25.360
<v Speaker 1>that's true for parents. And so we put together three

0:14:25.600 --> 0:14:28.800
<v Speaker 1>live channels, one for each of our key age segments.

0:14:28.800 --> 0:14:31.600
<v Speaker 1>So we do preschool kids two to four, um, we

0:14:31.680 --> 0:14:34.040
<v Speaker 1>call little Kids five to seven and then big Kids

0:14:34.040 --> 0:14:37.640
<v Speaker 1>eight to ten, and each one is programmed with day

0:14:37.640 --> 0:14:41.440
<v Speaker 1>parts to start your day, midday learning activity, movement in

0:14:41.440 --> 0:14:44.480
<v Speaker 1>the afternoon, the flying down at story time at the

0:14:44.560 --> 0:14:47.840
<v Speaker 1>end of the day. So pretty thoughtfully programmed into days.

0:14:51.680 --> 0:14:53.800
<v Speaker 1>We're gonna take a quick break, but we'll be right

0:14:53.800 --> 0:15:03.760
<v Speaker 1>back with more from Eric Berger, and we're back with

0:15:03.920 --> 0:15:08.520
<v Speaker 1>Eric Burger, CEO of common Sense Networks. Now, you mentioned earlier,

0:15:08.520 --> 0:15:12.200
<v Speaker 1>of course that Sensical is available both on mobile platforms

0:15:12.400 --> 0:15:17.280
<v Speaker 1>and in living room. Talk about the distribution strategy here.

0:15:17.320 --> 0:15:19.880
<v Speaker 1>I know you've got it. Seems just about every major

0:15:19.960 --> 0:15:24.080
<v Speaker 1>platform lined up to get the app on there. What

0:15:24.240 --> 0:15:27.440
<v Speaker 1>has that been like, because we've certainly seen headlines over

0:15:27.480 --> 0:15:30.600
<v Speaker 1>the years of it how fraught that could be, and

0:15:30.680 --> 0:15:33.800
<v Speaker 1>also the discovery challenge because it's sort of like, hey,

0:15:33.840 --> 0:15:36.280
<v Speaker 1>it's great to be an app on a platform, but

0:15:36.400 --> 0:15:38.720
<v Speaker 1>or is it's sort of like a grain of sand

0:15:38.760 --> 0:15:40.960
<v Speaker 1>on the beach. Yeah, you know, this is one of

0:15:41.000 --> 0:15:43.840
<v Speaker 1>the big lessons from from my from my last gig.

0:15:43.880 --> 0:15:47.240
<v Speaker 1>You know, we spent years working on building up the

0:15:47.480 --> 0:15:50.120
<v Speaker 1>distribution and wanted to be on all the platforms and understood,

0:15:50.120 --> 0:15:52.600
<v Speaker 1>particularly with an AD supported service, you want to be

0:15:53.520 --> 0:15:56.800
<v Speaker 1>as probably distributed as you can be. And that was

0:15:56.840 --> 0:15:58.680
<v Speaker 1>one of the first things when I came over is

0:15:58.800 --> 0:16:01.320
<v Speaker 1>getting back in touch with everybody at all these devices

0:16:01.400 --> 0:16:04.000
<v Speaker 1>that I had known and the team had known, and

0:16:04.240 --> 0:16:06.840
<v Speaker 1>ensuring that we were on the key platforms that matter.

0:16:06.920 --> 0:16:09.960
<v Speaker 1>And the living room does matter, even for kids, and

0:16:10.000 --> 0:16:12.640
<v Speaker 1>you'll see some of these big platforms are now getting

0:16:12.640 --> 0:16:15.400
<v Speaker 1>an overwhelming amount of their consumption, even the short form

0:16:15.640 --> 0:16:20.080
<v Speaker 1>user generated platforms are getting an overwhelming amount of consumption

0:16:20.160 --> 0:16:23.800
<v Speaker 1>in the living and so it was important from my

0:16:23.920 --> 0:16:27.440
<v Speaker 1>perspective for us to be there very early. The discovery

0:16:27.600 --> 0:16:30.640
<v Speaker 1>is about having a great product, you know, making that

0:16:30.800 --> 0:16:35.640
<v Speaker 1>known to the distribution platforms and ensuring that um, you know,

0:16:35.720 --> 0:16:38.320
<v Speaker 1>you get featured. I think we have a standout product.

0:16:38.320 --> 0:16:40.520
<v Speaker 1>The feedback that we're getting from these platforms is there's

0:16:40.560 --> 0:16:42.960
<v Speaker 1>nothing really like it in terms of its mix of

0:16:43.080 --> 0:16:46.560
<v Speaker 1>entertainment and learning and parent tools, and you know, we

0:16:46.640 --> 0:16:49.400
<v Speaker 1>believe that we'll get the features that we need there.

0:16:49.680 --> 0:16:51.760
<v Speaker 1>And then of course it's about activating the base that

0:16:51.800 --> 0:16:55.040
<v Speaker 1>we have through common sense. I mean, there are other

0:16:55.200 --> 0:16:59.720
<v Speaker 1>child centric streaming brands out there. Doodle comes to mind.

0:16:59.760 --> 0:17:02.640
<v Speaker 1>They've been out there a while. But I'm wondering whether

0:17:02.680 --> 0:17:07.719
<v Speaker 1>you if you see your competition as really the brands

0:17:07.760 --> 0:17:10.199
<v Speaker 1>that are getting all the attention in the streaming space

0:17:10.320 --> 0:17:16.120
<v Speaker 1>right now subscription driven, not kid focused, but certainly kid

0:17:16.240 --> 0:17:21.840
<v Speaker 1>catering uh, services like Disney plus Netflix of course, I mean,

0:17:21.880 --> 0:17:25.040
<v Speaker 1>are they your rivals. I think it's a no. I

0:17:25.040 --> 0:17:27.800
<v Speaker 1>think we're a compliment to those. I think kids are

0:17:27.920 --> 0:17:31.760
<v Speaker 1>using services like YouTube and TikTok the same way adults to,

0:17:32.119 --> 0:17:35.719
<v Speaker 1>which is they go to the large subscription streaming services.

0:17:35.760 --> 0:17:38.840
<v Speaker 1>Some of them still go to linear TV, but then

0:17:38.880 --> 0:17:42.280
<v Speaker 1>they use these other platforms to fill in with different

0:17:42.320 --> 0:17:45.480
<v Speaker 1>type of content, shorter form content, how to content, live

0:17:45.520 --> 0:17:49.320
<v Speaker 1>action and animation in a mix. And that's what's happening now.

0:17:49.400 --> 0:17:51.160
<v Speaker 1>If you look at the way kids are broken down,

0:17:51.600 --> 0:17:54.800
<v Speaker 1>they spend I don't know about thirteen to fifteen hours

0:17:54.800 --> 0:18:00.560
<v Speaker 1>per month on these online platforms meaning um uh you know,

0:18:00.640 --> 0:18:04.040
<v Speaker 1>YouTube and TikTok and those types of services. But that's

0:18:04.080 --> 0:18:07.280
<v Speaker 1>separate from their streaming time on those subscription services you

0:18:07.440 --> 0:18:10.840
<v Speaker 1>mentioned busy otherwise, and that's separate from their live TV.

0:18:11.440 --> 0:18:13.680
<v Speaker 1>So I think it's more of a compliment the smaller

0:18:13.720 --> 0:18:16.800
<v Speaker 1>players that are emerging, you know, that's less of the concern.

0:18:16.920 --> 0:18:20.359
<v Speaker 1>I think they're a little more niche and not really

0:18:20.400 --> 0:18:23.200
<v Speaker 1>taking on the UM the breadth of the content that

0:18:23.240 --> 0:18:27.040
<v Speaker 1>we're offering, with the learning aspects of we're offering. And definitely,

0:18:27.400 --> 0:18:30.720
<v Speaker 1>while they may be UM safe, I don't think they're

0:18:30.760 --> 0:18:34.240
<v Speaker 1>providing this healthy content experience where you've got child development

0:18:34.280 --> 0:18:39.360
<v Speaker 1>experts watching every video within the service, but must eventually

0:18:39.440 --> 0:18:42.560
<v Speaker 1>for the growth of your venture, you need to go

0:18:42.760 --> 0:18:46.119
<v Speaker 1>the same place those streaming services went in the sense

0:18:46.200 --> 0:18:50.720
<v Speaker 1>of getting your own original, exclusive content to the platform

0:18:50.800 --> 0:18:54.240
<v Speaker 1>being the thing that really makes you stand out. I

0:18:54.240 --> 0:18:57.399
<v Speaker 1>think it's inevitable over time. I would say two things.

0:18:58.320 --> 0:19:00.879
<v Speaker 1>Right now, there's so much to pull in. I mean,

0:19:00.920 --> 0:19:03.320
<v Speaker 1>the universe is so large of what's out there, and

0:19:03.359 --> 0:19:05.639
<v Speaker 1>again there's the big brands and the hippie gaels, and

0:19:05.680 --> 0:19:09.119
<v Speaker 1>so for us, raiding and vetting and finding and pulling

0:19:09.119 --> 0:19:12.840
<v Speaker 1>in content is and building up these interest space channels

0:19:13.080 --> 0:19:16.040
<v Speaker 1>is a really exciting challenge and we think very valuable

0:19:16.119 --> 0:19:19.040
<v Speaker 1>for for kids and families. That's one. The second thing though,

0:19:19.600 --> 0:19:24.320
<v Speaker 1>is um where would you begin with originals given our

0:19:24.400 --> 0:19:29.399
<v Speaker 1>charter um, I think for us like understanding the data

0:19:29.480 --> 0:19:32.000
<v Speaker 1>of which of the three age segments in preschool, the

0:19:32.000 --> 0:19:35.160
<v Speaker 1>little kids, the biggest kids, which are the topics really matter?

0:19:35.720 --> 0:19:39.760
<v Speaker 1>And finding originals that that lean into a really support

0:19:40.080 --> 0:19:42.680
<v Speaker 1>where kids are gathering is going to be the key

0:19:42.720 --> 0:19:45.080
<v Speaker 1>for us to get there. It's inevitable, as you say,

0:19:45.119 --> 0:19:47.760
<v Speaker 1>it's inevitable, but at the right time and with the

0:19:47.840 --> 0:19:51.880
<v Speaker 1>right day. Well, you've been down the original programming road before.

0:19:51.960 --> 0:19:53.879
<v Speaker 1>I mean you were doing it before it was cool.

0:19:54.000 --> 0:19:57.119
<v Speaker 1>I mean Crackle at Sony. In the early days, you

0:19:57.200 --> 0:20:00.639
<v Speaker 1>were putting a I think probably the first add supported

0:20:00.680 --> 0:20:04.080
<v Speaker 1>streamer to put premium content out there. But you know

0:20:04.119 --> 0:20:05.800
<v Speaker 1>how hard it is, You know how hard it is

0:20:05.840 --> 0:20:08.480
<v Speaker 1>to break through the clutter. But I would imagine you

0:20:08.560 --> 0:20:11.040
<v Speaker 1>learned a lot from that. We learned a lot, and

0:20:11.040 --> 0:20:13.440
<v Speaker 1>and that's why I say, let's let's look at the data.

0:20:13.520 --> 0:20:16.639
<v Speaker 1>I mean, we started so early that we were shooting

0:20:16.640 --> 0:20:19.800
<v Speaker 1>in the dark a little bit, and as we moved on,

0:20:20.080 --> 0:20:23.040
<v Speaker 1>we really understood. You know, our our audience was a

0:20:23.040 --> 0:20:29.080
<v Speaker 1>combination of gamers and streamers, and it was a multicultural audience.

0:20:29.480 --> 0:20:32.200
<v Speaker 1>And when we got into the programming, as we moved on.

0:20:32.640 --> 0:20:36.200
<v Speaker 1>We really lined that up very specifically, and the more

0:20:36.280 --> 0:20:39.399
<v Speaker 1>successful shows as we went on, one of them has

0:20:39.400 --> 0:20:42.280
<v Speaker 1>been a top ten on that that reasonly, um is

0:20:42.880 --> 0:20:46.280
<v Speaker 1>because we really understood the audience and had the data

0:20:46.359 --> 0:20:48.880
<v Speaker 1>to support that versus shooting in the dark. So that's

0:20:48.880 --> 0:20:51.040
<v Speaker 1>one of the big lessons I'm looking at here. Let's

0:20:51.160 --> 0:20:55.760
<v Speaker 1>really understand who we're speaking to, what value we're providing them,

0:20:55.800 --> 0:20:58.480
<v Speaker 1>and how to give them something that's uniquely sensible and

0:20:58.520 --> 0:21:02.800
<v Speaker 1>differentiated from to another big alligens here. So of course

0:21:02.840 --> 0:21:06.439
<v Speaker 1>you want kids to know the Sensical brand and have

0:21:06.600 --> 0:21:10.280
<v Speaker 1>the app on their platforms, do you then need to

0:21:10.680 --> 0:21:15.480
<v Speaker 1>make that brand known on other platforms YouTube, where they

0:21:15.520 --> 0:21:20.400
<v Speaker 1>already are, or social media? I'm just curious. I mean,

0:21:21.000 --> 0:21:25.040
<v Speaker 1>from our perspective, you know, we we won't use social

0:21:25.080 --> 0:21:29.040
<v Speaker 1>media to speak to kids, I just thought to parents perhaps,

0:21:29.560 --> 0:21:31.479
<v Speaker 1>but we will for parents. Yeah, so we're gonna use

0:21:31.480 --> 0:21:36.400
<v Speaker 1>those channels for parents. Um. I think you you may

0:21:36.440 --> 0:21:40.280
<v Speaker 1>see us on YouTube as we evolve, or platforms like

0:21:40.320 --> 0:21:43.520
<v Speaker 1>TikTok as well as we go on. But it's going

0:21:43.560 --> 0:21:46.119
<v Speaker 1>to be you know, in the right environment, under the

0:21:46.200 --> 0:21:49.120
<v Speaker 1>right set of conditions. When when you start to see

0:21:49.119 --> 0:21:51.280
<v Speaker 1>something like that. We have to be protective of the

0:21:51.400 --> 0:21:55.240
<v Speaker 1>environment as much as the content, right right. And you

0:21:55.280 --> 0:21:57.879
<v Speaker 1>know when you mentioned TikTok also you know, as you know,

0:21:58.000 --> 0:22:02.080
<v Speaker 1>TikTok is is pie a knee ring, a new kind

0:22:02.160 --> 0:22:06.240
<v Speaker 1>of content that's different than maybe what your licensing. You know,

0:22:06.320 --> 0:22:09.480
<v Speaker 1>but you have some digital first, digital native content as well.

0:22:09.920 --> 0:22:14.399
<v Speaker 1>So is that sort of TikTok style. Is that evident

0:22:14.520 --> 0:22:18.920
<v Speaker 1>even in the Sensical library, I would say coming soon

0:22:19.200 --> 0:22:23.600
<v Speaker 1>because that that you can't avoid, Uh, what's going on

0:22:23.600 --> 0:22:27.280
<v Speaker 1>on that platform and the type of content that's being made. Um.

0:22:28.280 --> 0:22:33.320
<v Speaker 1>The parent organization of of Sensical Common Sense Networks, UM,

0:22:33.480 --> 0:22:36.280
<v Speaker 1>we also there are a partner of ours, TikTok, So

0:22:36.400 --> 0:22:40.480
<v Speaker 1>we're working with them on ratings and partnering with them

0:22:40.480 --> 0:22:44.040
<v Speaker 1>to create a family friendly service and offering. And we

0:22:44.080 --> 0:22:46.439
<v Speaker 1>see the content very closely, what's going on there and

0:22:46.440 --> 0:22:49.120
<v Speaker 1>the opportunity of what's going on there with kids and

0:22:49.200 --> 0:22:51.840
<v Speaker 1>some of the value that we can create for the

0:22:51.880 --> 0:22:54.320
<v Speaker 1>families that are using Sensical with that type of content.

0:22:54.920 --> 0:22:59.840
<v Speaker 1>So here's a brand question. I understand how parents are

0:23:00.080 --> 0:23:05.040
<v Speaker 1>made to feel safe by the Sensical proposition. I wonder though,

0:23:05.160 --> 0:23:08.639
<v Speaker 1>especially when it comes to the older kids, whether sensical

0:23:08.680 --> 0:23:12.080
<v Speaker 1>then becomes sort of like the spinach brand. It's associated

0:23:12.119 --> 0:23:15.919
<v Speaker 1>with high nutrition, which keep parents may like but kids

0:23:16.520 --> 0:23:21.439
<v Speaker 1>may not. No, that is that is the challenge for us.

0:23:21.480 --> 0:23:24.640
<v Speaker 1>How do how do you not make us feel like spinish?

0:23:24.720 --> 0:23:30.520
<v Speaker 1>And we're not just pulling together strict learning uh stuff.

0:23:30.560 --> 0:23:34.120
<v Speaker 1>There's really fun shows on here and really popular brands

0:23:34.720 --> 0:23:36.920
<v Speaker 1>and topics that kids love. You know, as you move

0:23:37.040 --> 0:23:39.800
<v Speaker 1>up into the eight plus areas, you get more into

0:23:39.800 --> 0:23:42.080
<v Speaker 1>the how to and the live action and the sports

0:23:42.080 --> 0:23:43.639
<v Speaker 1>and the dance and the cooking and the d a

0:23:43.840 --> 0:23:47.200
<v Speaker 1>y and the building and drawing, and so our our

0:23:47.240 --> 0:23:49.520
<v Speaker 1>goal and what we are doing is having enough of

0:23:49.560 --> 0:23:52.960
<v Speaker 1>that content to really keep kids interested. But also the

0:23:52.960 --> 0:23:55.560
<v Speaker 1>big brands. That's why I mentioned you know, the Nirvana's

0:23:55.640 --> 0:23:58.240
<v Speaker 1>and then stories and then the Tells and the you know,

0:23:58.280 --> 0:24:01.720
<v Speaker 1>the hot Wheels and the you know, the barbies and

0:24:01.720 --> 0:24:05.360
<v Speaker 1>and all of those things that keep kids engaged um

0:24:05.359 --> 0:24:08.640
<v Speaker 1>and not just have them feel like it's more school time.

0:24:09.520 --> 0:24:12.240
<v Speaker 1>And then there's another segment of the audience to think about,

0:24:12.280 --> 0:24:17.680
<v Speaker 1>which is the marketers. How do you appeal without sort

0:24:17.720 --> 0:24:20.760
<v Speaker 1>of the massive scale that seems to be necessary to

0:24:20.800 --> 0:24:25.920
<v Speaker 1>get advertisers attention. How do you get their attention? Um, well,

0:24:25.960 --> 0:24:29.040
<v Speaker 1>a lot of them are looking for you know, when

0:24:29.040 --> 0:24:31.760
<v Speaker 1>you advertise to kids, you can't do targeting. So so

0:24:31.800 --> 0:24:34.480
<v Speaker 1>the whole ad world is moving into all this audience targeting,

0:24:35.520 --> 0:24:38.199
<v Speaker 1>all the conversation that's happening around that. But you can

0:24:38.240 --> 0:24:42.600
<v Speaker 1>only do contextual targeting, meaning line up with content that

0:24:42.720 --> 0:24:45.119
<v Speaker 1>is a proxy for audience when it comes to kids.

0:24:45.880 --> 0:24:47.480
<v Speaker 1>And right now, a lot of the brands that we

0:24:47.560 --> 0:24:53.639
<v Speaker 1>talked to in the agencies are skeptical about um. They

0:24:53.640 --> 0:24:56.040
<v Speaker 1>don't understand what is the right content and is that

0:24:56.119 --> 0:24:58.480
<v Speaker 1>content really the proxy for the audience that they want.

0:24:59.200 --> 0:25:02.520
<v Speaker 1>And so with us, that's what they get an understanding.

0:25:02.640 --> 0:25:06.760
<v Speaker 1>We have more metadata on what is appropriate content than

0:25:06.800 --> 0:25:09.280
<v Speaker 1>probably anybody out there at this point in time, as

0:25:09.280 --> 0:25:12.240
<v Speaker 1>we rate and curate and tag. And that's not only

0:25:12.320 --> 0:25:17.240
<v Speaker 1>for Sensible, but that's also for on YouTube. And so

0:25:18.280 --> 0:25:21.400
<v Speaker 1>that YouTube network of creators that I mentioned with billions

0:25:21.400 --> 0:25:25.720
<v Speaker 1>of views is also an opportunity for advertisers with us

0:25:25.760 --> 0:25:28.880
<v Speaker 1>to extend the app by out onto that creator network

0:25:29.600 --> 0:25:32.400
<v Speaker 1>to get more scale than just buying on the sensible

0:25:32.840 --> 0:25:36.240
<v Speaker 1>and and that again there's nobody out there that has

0:25:36.440 --> 0:25:38.920
<v Speaker 1>the data or the wherewithal or can give the third

0:25:38.960 --> 0:25:43.280
<v Speaker 1>party validation and confidence around what truly is appropriate content

0:25:43.520 --> 0:25:46.280
<v Speaker 1>that can line up with your ad campaign. In your point,

0:25:47.119 --> 0:25:52.080
<v Speaker 1>you made an interesting point earlier comparing common Sense media

0:25:52.200 --> 0:25:57.400
<v Speaker 1>is interests here to say what the Smithsonian International Geographic

0:25:57.480 --> 0:26:00.679
<v Speaker 1>have done on their sort of pro for profit me arms.

0:26:00.720 --> 0:26:03.119
<v Speaker 1>And you know, it's an interesting comparison because you know,

0:26:03.160 --> 0:26:07.360
<v Speaker 1>you think about something like especially national geographic, massive, massive

0:26:07.520 --> 0:26:11.040
<v Speaker 1>brand at this point, huge business. How big are the

0:26:11.119 --> 0:26:14.400
<v Speaker 1>ambitions here for common Sense? Is this about more than

0:26:14.440 --> 0:26:19.000
<v Speaker 1>just a streaming service? UM? Yes, I would say, first

0:26:19.080 --> 0:26:21.879
<v Speaker 1>of all, you know, there's forty eight million kids in

0:26:21.920 --> 0:26:26.080
<v Speaker 1>the US, but there's um, you know, seventy billion in

0:26:26.160 --> 0:26:30.440
<v Speaker 1>English language territories alone, and there's two billion kids worldwide.

0:26:30.760 --> 0:26:36.320
<v Speaker 1>The plan is worldwide, So there this issue exists every um,

0:26:36.400 --> 0:26:38.760
<v Speaker 1>not just here. But I would say we're starting in

0:26:38.840 --> 0:26:42.919
<v Speaker 1>short form video UM as a starting place, but the

0:26:42.960 --> 0:26:46.560
<v Speaker 1>whole key is about rating and curation and brand confidence

0:26:46.640 --> 0:26:50.520
<v Speaker 1>for parents. So from short form video, there's lots of

0:26:50.560 --> 0:26:56.920
<v Speaker 1>other media. There's podcasts, there's music, there's books, UM, there's commerce,

0:26:57.240 --> 0:27:00.600
<v Speaker 1>there's so many things that when we get parents into

0:27:00.640 --> 0:27:04.800
<v Speaker 1>the system and kids that we can curate other content

0:27:05.280 --> 0:27:08.639
<v Speaker 1>experiences for them, and that's where I think this goes

0:27:08.760 --> 0:27:11.520
<v Speaker 1>over time. Well, it's going to be interesting to watch

0:27:11.600 --> 0:27:14.679
<v Speaker 1>that growth story take shape. Sounds like you're in for

0:27:14.960 --> 0:27:18.359
<v Speaker 1>an interesting ride, so looking forward to following your progress.

0:27:18.800 --> 0:27:20.960
<v Speaker 1>Thanks a lot, Eric for taking time out to talk

0:27:21.000 --> 0:27:24.280
<v Speaker 1>about sensical. Thank you great to connect again. Really appreciate

0:27:30.640 --> 0:27:33.679
<v Speaker 1>This has been another episode of Strictly Business. Tune in

0:27:33.720 --> 0:27:37.200
<v Speaker 1>next week for another helping of scintillating conversation with media

0:27:37.320 --> 0:27:39.879
<v Speaker 1>movers and shakers, and please make sure you subscribe to

0:27:39.880 --> 0:27:43.240
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0:27:43.280 --> 0:27:46.080
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