It is expected that almost 214 million Americans will use connected television according to Emarketer, while the Kids&Family content category on CTV has increased by over 8%. It is a booming market which has only risen in the previous turbulent year. Now getting a slice of that audience is a goal for many companies, and Sprout Studios, a full-service production studio specializing in animation, is no exception here.
For three years, the company has been building their strategy to jump into the competitive world of digital video. Choosing educational and entertaining content as the main direction of their development, they launched their own channel on YouTube - NuNu TV in June 2019. With their ambitious plans for the channel - to get known globally with a focus on the US audience and to increase revenue through SVOD and AVOD monetization, they partnered with VlogBox in 2020.
In the ultra-competitive world of CTV, video makers have to put more effort into strategy, which takes over half of all activity including video creation itself. There needs to be more information here - who is testing placements or what are the results of the testing? On their way to reaching new US audiences, NuNu TV and VlogBox had to overcome 4 major impediments:
What's the difference between the North American audience and United States viewers, remained a distant dream for Sprout Studios. NuNu TV channel had subscribers in that region, but their number was too small, while the majority were from India.
Hidden fees and the lack of transparent monetization also posed an obstacle to the growth of NuNu TV as they tried to enter new markets by themselves.
The ambition of promoting their content on other international markets meant they would need to make use of the potential of new geographic and platform diversity – that would allow them to stream animated video content to a vast audience with maximum efficiency. CTV is a relatively new environment, which means less experience, less knowledge of best practices and no deep understanding of all the internal processes. Therefore, the principles of CTV’s workings, its algorithms and the whole variety of opportunities to join served as a defining moment for NuNu TV.
We decided to jump in CTV as we understood that being the OTT pioneers could bring us fantastic results in future. We see the progress now in terms of new audiences and revenue, and know it’s not the limit.
Head of business development at NuNu TV
After analyzing their desire to grow and develop in the global CTV and OTT arena and taking into account the current obstacles connected with the video content distribution, promotion, and monetization, Sprout Studios decided to kick off their partnership with VlogBox.
Trying AVOD and SVOD monetization models
Before starting on the quest to become a CTV hit, VlogBox and Sprout Studios analyzed all the aspects of CTV ad placements and monetization. VlogBox ensured satisfying CPM rates and connections to reliable demand partners. Thanks to the SVOD monetization model, NuNu TV gets paid for every user subscription, while AVOD provides a steady stream of ad revenue.
Creation of the Roku channel for NuNu TV
The first step both companies agreed upon was to create a Roku CTV channel, with the US as a top-priority audience. In 2020, the internet-connected TV penetration rate in the United States comprised about 80%, while Roku and Amazon Fire remained the two most popular OTT platforms in the region.
Management and Support team to handle tech issues
VlogBox’s content management and tech teams handle all the distribution, approval, and agreement issues. That’s why the NuNu TV team could focus on creating new and engaging videos for their viewers, letting VlogBox manage and operate the technical processes.
By expanding the geography of their audience and reaching US viewers, the NuNu TV channel has showcased impressive growth, with 80% of that coming from US CTV viewers.
The delegation of technical issues and monetization control to VlogBox has led to a rise of above 50% revenue at this time, which can be spent on internal investments and content generation. Now, the NuNu TV team can focus mainly on creativity. The team has more time to produce new content for their fans and potential viewers.