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Online entertainment abounds, for adults and children alike. The problem for children can sometimes be whether the content is actually safe for them.

GROM Social Enterprises Inc. (NASDAQ:GROM), a Florida-based entertainment, technology, and social media company that aims to provide age-appropriate content for kids by producing its own family-friendly programming, is focusing on cultivating original intellectual property (IP) for the highly lucrative preschool market.

One example is the development of “Baldwin’s Big Adventure” franchise, the story of a young and fearless train with a giant heart who embarks on a journey with his pal to reunite with his father. The project revolves around an animated preschool series and an accompanying book that’s destined for shelves this spring.

The opportunity to serve families through preschool entertainment is reflected in GROM’S recent acquisition of Curiosity Ink Media, a multiplatform original content creator for children, which Grom acquired in 2021. 

The “Baldwin’s Big Adventure'' franchise is in partnership with Germany’s Toon2Tango, a Munich-based production company that specializes in the development and distribution of family content throughout the world. Additionally, Toon2Tango will help Curiosity tailor the show to accommodate local cultural and language needs.

The First of Many?

Franchise success can lead to multiple other opportunities, Hicks said. Most toy products, for example, are sold in the 2- to 8-year-old age range and, by developing preschool content and licensing other related products, it can help build a brand that lasts beyond the early years of a child’s life, according to Hicks. 

 “It’s very important to build a brand that can last a lifetime,” Hicks told Benzinga. “Kids want to play with related toys outside of a television show or wear the same apparel — all the things that come out of licensing.”

The increasing focus on preschool content is not unique to GROM. Major players in the entertainment industry are also upping the ante in the growing field. 

In its latest quarterly results, Walt Disney Co. (NYSE:DIS) said there would be a renewed focus on preschooler content. Netflix Inc. (NASDAQ:NFLX) is another content provider boosting its preschooler range.

"Subscription-based programmers have become aware of the considerable opportunities a preschool hit can represent," explains Cheryl Gotthelf, President of Cheryl Gotthelf Consulting. "A successful property can not only add to -- and retain -- your subscriber base, but also unlock other potentially lucrative revenue streams including consumer products, licensing, merchandising and even experiential touch points such as live theatrical touring."

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.