Edutainment Rush Intensifies As Major Brands Enter The Market

As leading consumer brands experiment with game-based learning, new opportunities open up to investors and solutions that engage Generation Alpha. 

In recent years, the modern approach to education, combining learning and entertainment, has made its way into the investor agenda. The edutainment market is expected to reach more than $52 billion by 2030 at a GAGR of approximately 19.5%. And, with the rising popularity of “entertaining education,” new unlikely players are emerging. 

Enter major retailers

Looking to engage Gen Alpha, the first generation of children growing up in a fully digital world, consumer brands are tapping into the market.  In addition other top players dominating the industry, the world’s biggest retailers are eyeing edutainment.  

In October, H&M partnered with Kidsrights Foundation to create an edutainment platform called State of Youth Kids for 12-13-year olds. The project aims to teach kids about children’s rights, equality, and the UN Sustainable Development Goals through fun and engaging content. Other companies have long been engaging niche TikTok communities through edutainment.

Despite the challenging fundraising market, the biggest investment funds have taken the plunge  into education’s switch to game-based learning. Last year, Kirkbi A/S, the family-owned holding company with a controlling stake in Lego, acquired the video animation company BrainPop for a whooping $875 million. 

The company produces animated educational videos for children about a number of subjects and has a presence in two-thirds of U.S. school districts, and a reach of 25 million students. 

The BrainPop acquisition is expected to be one of many, fueled by the global digital transformation of learning. And more startups, such as Magic Kids, are targeting the already competitive edutainment market by focusing on their niche.  

Credit: Magic Kids
 

The future of edutainment

Unlike BrainPop, which creates content for students in grades K-12, Magic Kids is providing personalized home learning that complements the school curriculum. This 3D Edutainment platform for advanced development targets 4-8 years old.

In addition to developing basic knowledge, such as Math, Logic, Reading, and Spelling, MagicKids helps children learn teamwork, emotional intelligence, and improve social skills.

“Our enhanced social feature will let them embark on adventures with friends and work in teams of their level, and solve tasks together,” said Toly Sherbakov, founder at Magic Kids.” The platform is currently integrating a multi-player system to allow flawless communication.

Magic Kids is using generative AI, based on OpenAI solutions, such as Whisper and DALL-E, to create personalized content. “For instance, if a child is fascinated with dinosaurs, they will be presented with tailored activities that align with their interests,” said Sherbakov.

Magic Kids' proprietary algorithm ensures a secure digital environment, safeguarding against bullying. The app also recently introduced digital currency, allowing kids to buy enhancements for avatars and in-game upgrades. This new feature increased retention and conversion of trial subscriptions into paying customers. 

Teachers, too, currently use MagicKids to create educational content in addition to the curriculum. Thanks to the latest advancement in regenerative AI aka Unity Muse, Magic Kids expedites the process of generating new characters and environments.

“Everybody is talking about Future of Work, but nobody mentions Future of Home, with home learning being a part of it,” said Sherbakov. He wants Magic Kids to be on the forefront of this major shift.

According to a recent study, GenZ parents are 74% more likely to homeschool their kids. The primary motivation behind this choice is to provide a safer environment but also to shield them from what is described as “toxic socialization.” A recent analysis shows that the number of homeschooled children in New York State more than doubled, to approximately 12,900 kids, since the pandemic. 

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