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Consistent Double-Digit Yoy Declines Has Challenged TV's Supremacy

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Consistent Double-Digit Yoy Declines Has Challenged TV's Supremacy Toys & Games category Q1 AV Update: Lockdown Special 13th May 2020 Contents 1. Executive summary 2. UK TV (linear) 1. Supply – channel performance 2. Demand – advertiser activity 3. Kids TV in Lockdown 4. Ireland TV (linear) 1. Supply – channel performance 2. Demand – advertiser activity Executive summary 1. Linear TV (live and recorded) remains #1 when it comes to children (2-12) consuming video content, although its dominance is being eroded by YouTube and SVOD. 2. Children (4-15) are spending on average 25 minutes less per week watching TV than in Q1 2019.. 3. Free To Air (FTA) channels are in growth YoY as access to Pay TV channels declines in favour of SVOD services. 4. Viewing in Ireland is declining at a faster rate than in the UK, with demand falling at a similar rate. 5. The children’s TV market has seen a 26% increase during lockdown, with Sky benefitting most following a 6% increase in their share of the commercial impacts. UK TV (linear) Declines in linear TV viewing YoY (both commercial and non-commercial) are primarily driven by significant decreases in time spent on a weekly basis All commercial TV - 2019 -7% 07:36 All TV, commercial commercial non TV, Alland Mar 2020 vs. 2019, commercial commercial 2019, vs. 2020 Mar - – TV only TV Children’s commercial TV 2020 commercial TV (November only) TV (November commercial 15) weekly weekly hours 15) viewing - 15) equivalent Jan impacts: equivalent 15) - -15% 07:11 Children (4 Children Children (4 Children Source: MediaOcean/BARB May 2020 Viewing to children’s commercial channels improved somewhat in March, however consistent YoY declines means a total Q1 change of -15% 2020 vs. 2019 0% 1300 Jan Feb Mar YTD 15) - 1280 -5% 1260 Thousands -10% 1240 -11% 15) equivalent impacts 1220 - equivalent impacts -15% -15% 1200 YoY YoY % change in children (4 -17% -18% Children (4 -20% 1180 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 -19% -18% -14% -21% -14% -36% Source: MediaOcean/BARB May 2020 – commercial children’s channels only UK TV sales houses – colour key Turner Disney Sky Kids ITV Pop & CITV continue to showcase YoY growth, with the non-free to air (FTA) channels experiencing declines vs. Q1 2019 st 25% 1st Jan 2020 – 31 March 2020 15) 19.5% - 20% 15% 11.3% 9.1% 10% 8.5% 8.2% 6.3% 6.0% 5.6% 5.3% 4.4% 4.0% 3.9% 5% 2.3% 2.0% 1.5% 1.4% 0.7% 0.2% equivalent impacts 0% Share of children (4 150% 134% 100% 50% 30% 11% 1% 0% -3% -20% -22% -16% -16% -15% -20% 15) equivalent impacts -50% -29% -26% -27% - -36% -42% -37% YoY YoY % change in children -48% (4 -100% Source: MediaOcean/BARB May 2020 Pop has commanded a significant SOV% vs. Q1 2019, with Sky and ITV seeing YoY increases 1st Jan 2019 – 31st March 2019 1st Jan 2020 – 31st March 2020 DISNEYXD DISNEY DISNEYXD DISNEY LittleBe ITVBNET DISNEYJNR 2% 4% 1% 4% 0% 1% 5% POP ITVBNET CITVBCH DISNYJNR 13% 1% POP 2% CITVBCH 4% 2% 20% CITVCHAN CITV Disney NICK Disney 11% 9% 11% 10% 10% ITV ITV 14% CARTOONITO 11% NJR 3% CARTNITO 8% Turner 2% Sky Kids Sky Kids MILKSHAKE Turner BOOMERANG 19% BOOM 60% 59% 9% 17% 5% 5% MILKSHAKE 8% CARTOON NETWORK CARTOON NJR NETWORK 9% 7% NICK 11% POPMAX 6% NICKTOON TINYPOP 2% NJRTOO 4% 6% NICKTOONS NJRTOO TINYPOP 6% POPMAX 5% 6% 7% 2% Source: MediaOcean/BARB May 2020 As per 2019, FTA channels provide the greatest reach, however Cartoon Network has the largest unique reach owing to its targeting towards older boys 25% 1.8% 20% 1.9% 15% 1.1% 2.7% 1.1% 2.2% 1.0% 0.4% 1.5% 10% 0.2% 0.9% 0.5% 1.9% 15) % reach in commercial time - 0.2% 0.1% 0.3% 5% 0.1% Children (4 0% 0.1% Unique reach Source: TechEdge/K2/BARB May 2020 Cartoon Network and Disney Channel skew oldest, whilst CITV and Disney XD are appealing to younger audiences vs. 2019 1st Jan 2020 – 31st March 2020 POPMAX NICKTOON CITVBCH TINYPOP CITVCHAN DISNEYXD ITVBNET POP CARTOON NETWORK BOOMERANG MILKSHAKE LittleBe NJRTOO CARTNITO NJR DISNEYJNR Boys skew NICK DISNEY Younger Older Girls skew Source: MediaOcean/BARB May 2020 Toys & Games advertising peaked in March in the build up to Easter, with advertisers benefitting from extra eyeballs due to the first week of lockdown 2020 vs. 2019 8000 12% 15% 15) 7000 10% - 6000 5% 5000 0% 4000 -5% -6% 15) equivalent TVRs 3000 -10% - equivalent TVRs 2000 -15% -15% 1000 -20% Toys Games& children (4 -19% YoY YoY % change in Toys Games& children children (4 0 -25% Jan Feb Mar YTD 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 -6% -7% -5% -12% -2% -25% Source: MediaOcean/BARB May 2020 Spin Master maintain their position as #1 in 2019 into Q1 2020 1st Jan 2020 – 31st March 2020 Advertiser CH eq. TVRs SOV Avg. TVC length* YoY % change SPIN MASTER 2,155 12.4% 0.77 -2.9 MGA 1,819 10.5% 0.88 48.1 MAGIC BOX 1,576 9.1% 1.00 200.1 MATTEL UK 1,459 8.4% 0.86 60.2 HASBRO UK 938 5.4% 0.70 -29.1 FLAIR 830 4.8% 0.81 -59.6 VIVID 766 4.4% 0.78 40.0 CHARACTER OPTIONS 652 3.8% 0.74 -56.2 ZAPF 609 3.5% 0.93 35.0 JAKKS 604 3.5% 0.86 481.7 Total (48) 17,339 0.83 -5.8 TVC length guide: 10” = 0.5 20” = 0.85 30” = 1 40” = 1.33 Source: MediaOcean/BARB May 2020 *If advertiser number does not match the TVC length guide exactly, this is caused by a combination of different TVC lengths being used. Collectible brands dominate the top 10, as low ticket items take advantage of the cost efficient Q1 CPT’s 1st Jan 2020 – 31st March 2020 Campaign CH Eq. TVRs CH Actual TVRs Avg. TVC length* MAGIC BOX SUPERZINGS RIVALS OF KABO 803 803 1.00 MAGIC BOX MOJI POPS COLLECTIBLES 772 772 1.00 MGA LOL SURPRISE HAIRVIBES 494 581 0.85 MGA POOPSIE SPARKLY CRITTERS & POOP 449 449 1.00 PANINI ADRENALYN XL EURO 2020 366 604 0.61 SPIN MASTER UNI VERSE COLLECTIBLES 312 439 0.71 SPIN MASTER CANDY LOCKS & TWISTY PE 304 304 1.00 SPIN MASTER HATCHIMALS COLLEGGTIBLE 302 355 0.85 POKEMON TRADING CARDS 286 381 0.75 JAKKS KITTEN CATFE 280 318 0.88 Source: MediaOcean/BARB May 2020 *If advertiser number does not match the TVC length guide exactly, this is caused by a combination of different TVC lengths being used. UK TV summary 1. Commercial children’s channels have experienced a 15% decline in eq. impacts YoY, driven by children (4-15) watching more than 25 minutes less of TV per week. 2. HK+CH0-3 is the most significantly affected sub-demo (- 36%), whilst Girls 4-9 has seen a resurgence from its decline in 2019 (-14%). 3. FTA channels continue to deliver the highest % reach against children’s audiences, but a number of the paid channels such as Nick and Cartoon Network have a high unique reach for children. 4. Toys & Games TV advertising saw an increase YoY in March, however Q1 is still 6% down vs. 2019 (in terms of viewing). 5. Spin Master have claimed the #1 Toys & Games TV advertiser. MGA in #2 has seen a 48% increase YoY in Q1 vs. 2019 Kids TV in Lockdown Children’s TV has experienced a resurgence following the lockdown, with boys 4-9 showcasing the largest increases Children 4-15 Viewing to Children’s Commercial Channels Measure as CH Eq. Impacts PoP % change in CH Viewing: YoY % Change in CH Viewing: Pre vs. Post Lockdown Since Lockdown +26% -5% PoP % Changes in CH Eq. Impacts by Audience Children 4-6 Children 4-9 Children 7-12 Boys 4-9 Girls 4-9 HK+CH 0-3 +21% +22% +23% +27% +17% +8% Source: MediaOcean/BARB May 2020 (pre lockdown = 24th Feb-22nd Mar / During = 23rd Mar-19th April) Pop maintains its position as the #1 channel for all children, with over double the % share of the closest competitor 25.0% 21.4% 20.0% 15.0% 10.4% 10.0% 9.1% 8.7% 7.2% 7.0% 6.7% 6.7% % Share% of commercial impacts 4.7% 5.0% 4.1% 4.1% 2.8% 2.0% 1.8% 1.4% 1.2% 0.7% 0.1% 0.0% POP CITVCHAN TINYPOP NICK NICKTOON CARTOON NJR MILKSHAK NJRTOO DISNEY DISNYJNR BOOM POPMAX DISNEYXD CITVBCH CARTNITO ITVB ITVBe Commercial Channel Source: MediaOcean/BARB May 2020 (pre lockdown = 24th Feb-22nd Mar / During = 23rd Mar-19th April) Nicktoons has benefitted most from the lockdown (+129%), with Turner’s channels all experiencing declines PoP % Change in CH Viewing: Pre vs. Post Lockdown 140% 129% 110% 120% 103% 100% 85% 80% 57% 60% 49% 40% 32% 31% 31% 30% 27% 14% 12% 20% 6% 0% -20% -9% -16% -40% -31% % Eq.ImpactsChange % CH in -60% -42% NICKTOON ITVBe TINYPOP DISNEYXD NICK NJRTOO CITVCHAN DISNYJNR POP CITVBCH DISNEY NJR ITVB POPMAX MILKSHAK CARTOON CARTNITO BOOM Commercial Channel YoY % Change in CH Viewing: Since Lockdown 80% 60% 60% 52% 51% 40% 20% 20% 12% 0% -20% -2% -16% -21% -23% -40% -25% -27% -29% -32% -33% -33% -35% -60% -50% -60% % Eq.ImpactsChange % CH in -80% POP TINYPOP NICKTOON ITVB CITVCHAN DISNEY NJR DISNEYXD NICK MILKSHAK CITVBCH CARTOON POPMAX NJRTOO DISNYJNR ITVBe BOOM CARTNITO Source: MediaOcean/BARB May 2020 (pre lockdown = 24th Feb-22nd Mar / During = 23rd Mar-19th April) Commercial Channel Sky has showcased the largest growth in share following the lockdown (+6%), with Turner declining by 8% 24th Feb – 22nd Mar 23rd Mar – 19th Apr DISNEYXD, 1% DISNEYXD, 2% ITVBe, 0% ITVB, 1% CARTNITO, 1% DISNYJNR, 4% DISNYJNR, 4% CITVBCH, 1% DISNEY, 4% DISNEY, 4% POP, 21% POP, 21% Disney, 9% BOOM, 3% Disney, 10% CITVCHAN, 10% CARTOON, 7% ITVBe, 0% ITV, 12% ITVB, 1% Turner, 11% CITVBCH, 1% CARTNITO, 2% TINYPOP, 6% TINYPOP, 9% BOOM, 6% ITV, 13% Turner, 19% Sky, 60% CITVCHAN, 10% NICK, 7% Sky, 66% POPMAX, 2% NICK, 9% CARTOON, 10% NICKTOON, 4% NJRTOO, 5% NJR, 7% POPMAX, 2% MILKSHAK, 7% NICKTOON, 7% NJRTOO, 4% NJR, 7% MILKSHAK, 9% Source: MediaOcean/BARB May 2020 (pre lockdown = 24th Feb-22nd Mar / During = 23rd Mar-19th April) Demand for airtime is still present despite the lockdown, however CH Eq.
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