Toys & Games AV Update

Toys & Games AV Update: Full Year 2020 Contents

1. Executive summary 2. Toys & Games Advertising Total Market Dynamics 3. UK TV (linear) a) Audience dynamics b) Advertiser demand 4. Ireland TV (linear) a) Audience dynamics b) Advertiser demand 5. YouTube Top 10s TV Sales Houses – Colour Key Executive Summary Toys & Games AV Update - Executive Summary

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SVOD accounts for Sky Kids control UK Toys & Games 31% of viewing Children (4-15) Digital media almost two thirds ad. spend occasions (2-9 spent 20% less accounted for an of commercial decreased an est. year olds), with time watching est. quarter of all children’s impacts -31% YoY (2020 vs. Linear TV (23%) linear TV in Q4 UK Toys & Games following the 2019) – c.£40m and Online Video (2020 vs. 2019) – ad. spend in 2020. closing of Disney YoY. (21%) placing 2nd c.1.5 hours YoY. channels. and 3rd.

Source: Nielsen Ad Intel/BARB/TAM/MediaOcean/Giraffe Insights Kids and the Screen/Social Blade January 2021 Toys & Games AV Update - Executive Summary cont.

Cocomelon is the Spin Master L.O.L. Surprise Pop commanded Milkshake most viewed ranked as the #1 ranked as the #1 the highest share achieved the “Made for Kids” advertiser in both campaign in both of children’s highest unique YouTube channel the UK and Ireland the UK and Ireland commercial reach for children globally, and #2 of (10.6% and 12.3% (1.4% and 6.0% SOV impacts in Q4 2020 during Q4 2020 all YouTube SOV respectively). respectively). (17%), in the UK. (4.4%), in the UK. channels.

Source: Nielsen Ad Intel/BARB/TAM/MediaOcean/Giraffe Insights Kids and the Screen/Social Blade January 2021 Toys & Games Total Advertising Dynamics Despite a Strong Q1, Industry Reported Ad. Spend (All Media) for Toys & Games Advertisers Declined -31% YoY

Nielsen Ad Intel reported Toys & Games advertising spend 2019 vs. 2020

25 60% 2019: £129m 40% 20 19.1

16.7 20% 15.0 14.9 - 15 13.7 0% 12.5 12.8 10.8 31% 9.6 10.0 -20% 10 8.9 7.8 8.2 8.0 8.2

Reported Reported spend (£m) 7.2 -40% 5.6 4.8 5.0 4.6 YoY change% in reported spend 5 4.4 3.4 3.4 3.6 -60% 2020: £89m 0 -80% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2019 2020 YoY

Source: Nielsen Ad Intel January 2021 Digital Now Estimated to Account for a Quarter of All UK Toys & Games Ad. Spend

2019 Reported Toys & Games Ad. 2020 GM est. Toys & Games Ad. Spend Split Spend Split Other Digital 6.0% 3.4% Other 5.0% 2020 Reported Toys & Games Ad. Spend Split Digital 24.0% Digital 8.1% Other TV 1.3% 91.6%

TV 70.0%

TV 90.6%

Nielsen’s methodology does not reliably capture all Digital spends, especially Social Media, therefore Generation Media estimates are provided for a greater representation of market dynamics.

Source: Nielsen Ad Intel/Generation Media January 2021 *Other includes Cinema, Radio, Press, OOH, Direct Mail UK TV (linear) Audience Despite Lockdown Restrictions, Children Spent Less Time

Viewing Linear TV in 2020 (vs. 2019) - - 2019 Q4 2019 (Full Year)

08:03 07:17

All TV, commercial commercial non TV, All and commercial non TV, All and

– – -20%

(All Year) (All -8%

2020 Q4 2020 (Full Year)

commercial TV

commercial TVcommercial (Q4

15) weekly weekly hours 15) viewing weekly hours 15) viewing

- -

06:25 06:43

Children (4 Children (4 Children

Source: MediaOcean/BARB January 2021 Audience Decline Accelerated Across Oct-Nov Following the Removal of Disney Channels in the UK 1st Jan-31st Dec, 2020 vs. 2019

Jan Feb Mar April May June Jul Aug Sep Oct Nov Dec YTD 0% 1600000

-5% 1400000

15) 15) - -10% 1200000 -10% -11% -15% -11% -11% 1000000 -17% -20% -18% 800000 -25% -21% -22%

600000 15) equivalent impacts -30% -27% - -29% equivalent impacts -30% 400000 -35% -33% 200000 YoY YoY change % in children (4 -40%

-39% Children (4 -45% 0

YoY % change 2020 children equivalent impacts

Children 4-6 Children 4-9 Children 7-12 Boys 4-9 Girls 4-9 HK+CH 0-3

-21% -21% -25% -25% -17% -29%

Source: MediaOcean/BARB January 2021 – commercial children’s channels only Cartoonito Almost Doubled its Audience After it Improved its EPG Position, but Pop Retained its Status as the #1 Channel in the UK 1st Oct-31st Dec, 2020 vs. 2019

18% 16.9%

16%

14%

12% 11.3% 10.1% 15) equivalent equivalent 15) 9.8% 9.7% - 10% 7.6%

8% 7.0% 6.8% impacts 5.7% 5.5% 6% 5.3%

4% 2.2% 1.6%

Share of children (4 children of Share 2% 0.3% 0.1% 0% POP CARTOON NJRTOO CITVCHAN MILKSHAK NJR CARTNITO NICK TINYPOP NICKTOON BOOM POPMAX CITVBCH ITVB Little Be

100% 87%

50% 27%

-12% -18% -28% -28% -27% -27% -28% -50% -35% -37%

-52% -48% -49% YoY% change in equivalent impacts equivalent in change YoY% -100% -83%

Source: MediaOcean/BARB January 2021 Warner Media were the Biggest Beneficiaries of Disney’s Closure, but Sky Kids Remain the Dominant Supplier of Impacts

1st Oct 2019 – 31st Dec 2019 1st Oct 2020 – 31st Dec 2020

ITVB DISNEY DISNEYXD Little Be 0% 4% 1% 0% CITVBCH CITVCHAN 2% DISNYJNR POP POP 10% CARTNITO4% 17% 17% 2% BOOM BOOM 5% Disney 5% 10% ITV WarnerWarne CARTNITO 11% CARTOON TurnerMediarMedia NJRTOO 7% NJRTOO 8% 15% 9% Little Be Warner 10% Turner 1% Media 24% ITVB CITVBCH 1% Sky Kids Sky Kids 2% CARTOON ITV 58% MILKSHAK 65% 11% 17% 9% MILKSHAK 10% CITVCHAN POPMAX 13% TINYPOP 2% 7% NICKTOON NJR 6% 8% NICKTOON NJR TINYPOP NICK NICK 3% 7% 6% POPMAX 5% 7% 2% Source: MediaOcean/BARB January 2021 Pop’s Share of Viewing is Driven by its (Comparative) Broad Appeal to Boys and Girls 1st Oct -Dec 2020

POPMAX

ITVB POP

NJR

MILKSHAK CITVBCH CITVCHAN BOOM NICKTOON

NJRTOO

TINYPOP CARTNITO CARTOON Boys skew

ITVbe NICK Younger Older

Girls skew

Source: MediaOcean/BARB Jan 2021 Milkshake’s Free To Air Advantage Means it Delivers the Highest Unique Reach of All Children’s Commercial Channels Despite its Limited Daypart 1st Oct-31st Dec 2020

25%

20% 1.5%

1.4% 15%

4.4% 1.6% 0.8% 0.8% 10%

1.7% 1.3% 0.4% 15) 15) % reach in commercial time - 0.6% 0.8% 0.3% 0.2% 5%

0.4% Children Children (4

0.1% 0%

Unique reach

Source: TechEdge/K2/BARB May 2020 Advertising Toys & Games TV Advertising Peaked in October, However Weight of Activity was Over 1/3 Less than 2019 1st Jan-31st Dec, 2020 vs. 2019

10000 15% 20% 13% 9000 10%

10% 15) - 8000 7000 0% 6000 -10% 5000 -16% -20% 4000 -18%

equivalent TVRs equivalent 3000 -26% -30% -29% -30% 2000 -32% -40% Toys & Games children (4 children & Toys Games -36% -36% 1000 -39% 0 -44% -50% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

YoY % change 2020 CH Eq. TVRs

Children 4-6 Children 4-9 Children 7-12 Boys 4-9 Girls 4-9 HK+CH 0-3

-19% -22% -28% -26% -18% -25%

Source: MediaOcean/BARB January 2021 Spin Master were the Most Viewed Advertiser in 2020, with Only 2 of the top 10 in Growth YoY Top 10 UK Toys & Games Advertisers, 1st Jan-31st Dec 2020, 62 Advertisers Total

1 2 3 4 5

8,194 CH eq. TVRs 5,561 CH eq. TVRs 4,301 CH eq. TVRs 4,212 CH eq. TVRs 4,200 CH eq. TVRs 10.6% SOV 7.2% SOV 5.6% SOV 5.5% SOV 5.4% SOV -29% YoY -4% YoY -19% YoY -51% YoY -45% YoY

6 7 8 9 10

3,587 CH eq. TVRs 3,498 CH eq. TVRs 3,274 CH eq. TVRs 2,949 CH eq. TVRs 2,750 CH eq. TVRs 4.6% SOV 4.5% SOV 4.2% SOV 3.8% SOV 3.6% SOV +17% YoY +131% YoY -2% YoY -24% YoY -23% YoY

Source: BARB/MediaOcean January 2021 MGA Produced the #1 and #2 Most Viewed Campaigns of 2020 Top 10 UK Toys & Games Campaigns, 1st Jan-31st Dec 2020, 460 Campaigns Total

1 2 3 4 5

OSMO Genius & MGA L.O.L. Surprise Hairvibes MGA L.O.L. Surprise O.M.G. Pokémon Trading Cards. Interplay My Fairy Garden Creativity Starter Kits

1,067 CH eq. TVRs 1,015 CH eq. TVRs 943 CH eq. TVRs 903 CH eq. TVRs 903 CH eq. TVRs 1.4% SOV 1.3% SOV 1.2% SOV 1.2% SOV 1.2% SOV

6 7 8 9 10

Moose Toys Scruff A Luv & Magic Box Super Zings Magic Box Moji Pops LEGO City Interplay Fablab Activity Kits Kindi Kids Combo

804 CH eq. TVRs 773 CH eq. TVRs 740 CH eq. TVRs 721 CH eq. TVRs 714 CH eq. TVRs 1.0% SOV 1.0% SOV 1.0% SOV 0.9% SOV 0.9% SOV

Source: BARB/MediaOcean January 2021 L.O.L. Surprise Hairvibes was the #1 New Campaign of 2020 Top 10 UK New* Toys & Games Campaigns, 1st Jan-31st Dec 2020, 268 New Campaigns Total

1 2 3 4 5

Moose Toys Scruff A Luv & Spin Master DC Batman MGA L.O.L. Surprise Hairvibes Kindi Kids Combo Figures. MGA Na! Na! Na! Surprise IMC Bloopies Shellies

1,067 CH eq. TVRs 714 CH eq. TVRs 697 CH eq. TVRs 679 CH eq. TVRs 594 CH eq. TVRs

6 7 8 9 10

ZAPF Baby Born Surprise Little Tikes Mighty Blasters & Pets Magic Box Super Things Interplay Facepaintoos L.O.L. Surprise Remix

584 CH eq. TVRs 536 CH eq. TVRs 524 CH eq. TVRs 522 CH eq. TVRs 457 CH eq. TVRs

Source: BARB/MediaOcean January 2021. *New campaign defined as registering no activity in 2019. 20” TVCs were Dominant, with 3 of the Top 10 Advertisers Opting Not to Use 10” TVCs.

Total Toys & Games Rank Advertiser 10” 20” 30” Other % of children’s equivalent impacts 1 Spin Master 20% 63% 17% 0% MGA 2 1% 84% 16% 0% 20" Entertainment 51% 3 Mattel 0% 90% 10% 0%

4 Hasbro 15% 85% 0% 0%

5 Character Options 25% 54% 20% 0%

6 John Adams 0% 7% 93% 0% 30" 33% 7 Interplay 3% 34% 38% 26% 8 ZAPF Creations 0% 24% 76% 0%

9 VTech 13% 39% 48% 0% 10" Other 11% 5% 10 Goliath Vivid 12% 35% 53% 0%

Source: BARB/MediaOcean January 2021 UK Linear TV Summary

1. Children (4-15) spent 20% less time watching Linear TV in Q4 2020 compared to 2019 – equivalent to more than 90 minutes. 2. Pop finished Q4 as the #1 children’s channels (ranked by children’s commercial impacts), commanding a 17% share. 3. Cartoonito nearly doubled its audience in Q4 2020 (vs. 2019) following an improvement in EPG placement following the closure of Disney channels. 4. Sky Kids commanded almost two thirds of all commercial impacts (children’s specific channels/strands) in Q4 2020. 5. Toys & Games TV advertising (measured as CH eq. TVRs), declined by -26% YoY. 6. Spin Master finished the year as the #1 Toys & Games TV advertiser. 7. L.O.L. Surprise Hairvibes finished the year as the #1 TV campaign. Ireland TV (linear) Audience Audience Decline in Ireland was Less Severe than the UK (-14% vs. -22%) 1st Jan-31st Dec 2020 vs. 2019

January February March April May June July August September October November December YTD 20% 60000

11% 15) 15)

- 10% 50000 1% 0% 40000

-2% -3% -10% 30000

-10% -11% (000s) -12% -14% -14% 15) equivalent impacts -20% 20000 -

equivalent impacts -22% -30% 10000

YoY YoY change % in children (4 -30%

-33% Children (4 -40% -36% 0

YoY % change 2020 eq. impacts

Children 4-9 HK+CH

-11% -14%

Source: MediaOcean/TAM Jan 2021– commercial children’s channels only Converse to the UK, Free To Air Availability did not Offer Advantage to RTE2 as it Produced the Largest YoY Decline 1st Oct-31st Dec 2020 vs. 2019

35% 30.0%

30%

15) - 24.6% 23.8% 25%

20%

15% 13.0%

10% 7.6%

equivalent impacts 5% Share Share of children (4 1.0% 0% INICK INJRTOO INJR INICKTOO RTE2 VMTHREE 0% -1% -2% -4% -10%

-20% -18% -20% -30%

15) equivalent impacts -40%

YoY YoY % change in children (4

-50% -45%

Source: MediaOcean/TAM Jan 2021 Advertising Toys & Games TV Advertising Decline was Faster in Ireland than the UK (-35% vs. -26%), Despite Stronger Audience Performance on the Key Channels (-14% vs. -22%) 1st Jan-31st Dec 2020 vs. 2019

10% 4500 0% 0% 4000 3500 -10% 3000 -20% -15% -22% -21% 2500 -30% TVRs 2000 -32% -30% -32% -40% -35% -40% 1500 -50% -43% -47% 1000

-49% Toys Games& CH eq. TVRs

-60% 500 YoY YoY change % in Toys Games& CH eq. -70% -64% 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

YoY % change in CH eq. TVRs 2020 CH eq. TVRs

Children 4- HK+CH 9

-31% -36%

Source: TAM/MediaOcean January 2021 The Top 4 TV Advertisers in Ireland were the Same as the UK Top 10 Ireland Toys & Games Advertisers, 1st Jan-31st Dec 2020, 42 Advertisers Total

1 2 3 4 5

3,798 CH eq. TVRs 3,426 CH eq. TVRs 2,831 CH eq. TVRs 2,206 CH eq. TVRs 2,017 CH eq. TVRs 12.3% SOV 11.1% SOV 9.2% SOV 7.2% SOV 6.5% SOV -44% YoY -15% YoY +33% YoY -40% YoY +161% YoY

6 7 8 9 10

1,462 CH eq. TVRs 1,333 CH eq. TVRs 1,267 CH eq. TVRs 969 CH eq. TVRs 946 CH eq. TVRs 4.7% SOV 4.3% SOV 4.1% SOV 3.1% SOV 3.1% SOV -38% YoY +43% YoY -32% YoY -51% YoY -75% YoY

Source: TAM/MediaOcean January 2021 As per the UK, MGA Produced the #1 and #2 Most Viewed TV Campaigns in Ireland Top 10 Ireland Toys & Games Campaigns, 1st Jan-31st Dec 2020, 229 Campaigns Total 1 2 3 4 5

L.O.L. Surprise Poopsie Slime Surprise Spin Master Paw Patrol Hatchimals Baby Born

1,839 CH eq. TVRs 867 CH eq. TVRs 717 CH eq. TVRs 653 CH eq. TVRs 614 CH eq. TVRs 6.0% SOV 2.8% SOV 2.3% SOV 2.1% SOV 2.0% SOV

6 7 8 9 10

Moose Toys Scruff A Luvs Interplay My Fairy Garden MGA Na! Na! Na! Surprise Interplay Fablab Activity Kits Spin Master Bakugan

607 CH eq. TVRs 512 CH eq. TVRs 476 CH eq. TVRs 467 CH eq. TVRs 405 CH eq. TVRs 2.0% SOV 1.7% SOV 1.5% SOV 1.5% SOV 1.3% SOV

Source: TAM/MediaOcean January 2021 Ireland Linear TV Summary

1. Children’s commercial impacts in Ireland declined by - 14% YoY, compared to -22% for the UK. 2. Sky Kids Ireland accounted for 91% of all children’s commercial impacts in Q4 (children’s specific channels/strands). 3. Nickelodeon was the most popular channel in Ireland, commanding a 30% share of all commercial impacts. 4. Toys & Games advertising declined by -26% YoY, exactly the same decline produced in the UK. 5. As per the UK, Spin Master finished the year as the #1 Toys & Games TV advertiser. 6. As per the UK, L.O.L. Surprise finished the year as the #1 campaign. YouTube Top 10s SVOD Commands the Largest Share of Viewing Occasions, with Online Video (YouTube) and Linear TV Trading Places for Second 2-9 year olds, Viewing Occasions, “How did you watch it?”

40%

35%

30% 31%

25% 23% 20% 21%

15%

10% % of of % viewing minutes

0% Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6 Wave 7 (October 2020)

Live TV Online Video SVOD

For the first time since the KATS study began, Linear TV’s share of viewing occasions did not decline wave on wave as it replaced YouTube at #2. SVOD services continue to command the largest share of children’s attention.

Source: Giraffe Insights Kids and the Screen, question: “How did you watch it?”, Base: Occasions: All waves 2-9 year olds – 75,001 “Made for Kids” Content Hold a Prominent Position in the Global YouTube Landscape

Top 10 Channels Globally, All Categories, Ranked by Daily Avg. Views: Top 10 Channels Globally, “Made for Kids”, Ranked by Daily Avg. Views:

Subs. Daily Avg. Subs. Global Daily Rank Channel Subs. Growth views Rank Channel Subs. Growth Avg. views (last 30 days) (last 30 days) (last 30 days) (last 30 days)

1 T-Series 170m +3m 125m 1 Cocomelon 104m +2m 104m 2 Cocomelon 104m +2m 104m 2 Kids Diana Show 73.8m +1.6m 68m 3 SET India 95m +2.6m 84m 3 Like Nastya 68.5m +1.7m 63m 4 Sony SAB 44.9m +1.7m 70m 4 Vlad and Niki 62.1m +1.4m 61m 5 Kids Diana Show 73.8m +1.6m 68m 5 Toys and Colors 28.7m +600k 37m 6 Like Nastya 68.5m +1.7m 63m 6 D Billions 5.5m +1m 34m 7 Vlad and Niki 62.1m +1.4m 61m 7 Super JoJo 13.9m +1.5m 32m 8 Zee TV 56.2m +1.2m 55m 8 Pinkfong! 44m +1.1m 29m 9 Colors TV 34.7m +1.6m 54m 9 LooLoo Kids 39.3m +1.1m 27m 10 MovieClips 49.2m +1m 48m 10 Little Angel 20.8m +800k 25m 1 2 3 4 5

Cocomelon continues to dominate the “Made for Kids” YouTube landscape, amassing the most subscribers and views in the past 30 days. This means it is also the 2nd most successful YouTube channel across all categories. The growth of D Billions despite its relatively small subscriber base marks it out as one to watch in the coming months.

Source: Social Blade, data accurate as of 04.02.2021 Ones to watch – Top 10 Global “Rising” Entertainment Channels

Top 10 Channels Globally, Entertainment, Ranked by Subscriber Growth: Subs. Global Daily Rank Channel Subs. Growth Avg. views (last 30 days) (last 30 days)

1 Cocomelon 104m +2m 104m

2 Kids Diana Show 73.8m +1.6m 68m

3 Like Nastya 68.5m +1.7m 63m

4 Super JoJo 13.9m +1.5m 32m

5 Vlad and Niki 62.1m +1.4m 61m The market leaders show no sign of 6 Pinkfong! 44m +1.1m 29m slowing down, with the top 3 channels (ranked by subscribers alone), averaging 7 LooLoo Kids 39.3m +1.1m 27m over 1.5m subscribers added in the last 30 days. 8 D Billions 5.5m +1m 34m Super JoJo marks itself out as one to watch by adding over 1.5m subs in the 9 Little Angel 20.8m +800k 25m past 30 days – over 10% of its total subs base. Only D Billions has a higher 10 BabyBus 22.7m +800k 25m percentage.

Source: Social Blade, data accurate as of 04.02.2021 The View from the UK Top 10 “Made for Kids” Channels Originating in the UK

Top 10 Channels Originating in the UK, “Made for Kids”, Ranked by Daily Avg. Views: Subs. Global Daily Rank Channel Subs. Growth Avg. views (last 30 days) (last 30 days)

1 The Dad Lab 1.8M +200K 4.5M

2 Ruby and Bonnie 4.9M +150K 3.4M

3 Gaby and Alex 16.9M +100K 3.3M

4 Steve and Maggie 4.4M +70K 2.8M

5 Mister Maker 1.24M +130K 1.8M

6 Play Dolls 1.17M +120K 1.7M The Dad Lab is the leading UK 7 Toddler Fun Learning 1.68M +50K 1.6M based channel, recording an average of 4.5m daily views in the 8 More Emily Tube 4.9M +140K 1.4M last 30 days. This is however less than 5% of Cocomelon’s daily 9 PlayToys 6.97M +110K 1.3M total. 10 Learn with Twinkle 1.49M +70K 1.1M

Source: Social Blade, data accurate as of 04.02.2021 “TV” Channels Getting in on the Action Top 10 TV Broadcaster Channels (UK Based)

Top 6 Channels UK Based, TV Broadcaster Published Channels*, Ranked by Daily Avg. Views:

Subs. Global Daily Rank Channel Subs. Growth Avg. views (last 30 days) (last 30 days)

1 Disney Channel UK 8.55M +620K 15.0m

2 Cartoon Network UK 7.7M +210K 7.5M

3 Disney Junior UK 9.6M +210K 6.4M Following the closure of Disney’s 4 Nickelodeon UK 5M +140K 4.9M linear channels in the UK, Disney Channel UK is dominant, 5 Boomerang UK 5.77M + 110K 2.8M achieving 2x more daily views than its next closest competitor – Cartoon Network UK. 6 CBeebies 1.72M +30K 3.3M

Source: Social Blade, data accurate as of 04.02.2021 *Channel names only, excluding programming led channels e.g. Ben 10 Executive Summary Toys & Games AV Update - Executive Summary

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Source: Nielsen Ad Intel/BARB/TAM/MediaOcean/Giraffe Insights Kids and the Screen/Social Blade January 2021 Toys & Games AV Update - Executive Summary cont.

Source: Nielsen Ad Intel/BARB/TAM/MediaOcean/Giraffe Insights Kids and the Screen/Social Blade January 2021 Keeping Clients Connected

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