Market Potential
Market Potential
There are two kinds of companies that compete in this space, educational app companies and traditional entertainment companies. According to the National Venture Capital Association, investments into educational technology companies more than doubled in 2012 to $429 million from just $146 million in 2011. With much emphasis recently on the integration of technology in the early childhood education domain, it would appear that the market for appisodes is poised for tremendous growth over the next few years.
Companies have chosen to either sell their app directly, or use a subscription model. Most companies choose to sell their product as a downloadable app on iTunes as seen in the figure on the right.
There are two kinds of companies that compete in this space, educational app companies and traditional entertainment companies. According to the National Venture Capital Association, investments into educational technology companies more than doubled in 2012 to $429 million from just $146 million in 2011. With much emphasis recently on the integration of technology in the early childhood education domain, it would appear that the market for appisodes is poised for tremendous growth over the next few years.
Companies have chosen to either sell their app directly, or use a subscription model. Most companies choose to sell their product as a downloadable app on iTunes as seen in the figure on the right.
Venture Analysis
Pain Point
Although children are spending more and more minutes on the computer each day, what they are learning from these activities is unknown. Appisodes were designed to do much more with tablet time for children than a simple digital babysitter. The value created for parents by helping them to become informed participants in their child's early education is the market gap that appisodes attempt to address.
Solution
Appisodes are a new product that attempt to address the problem by combining elements of storytelling and games together to provide an interactive experience for children 3-5 years old. Appisodes utilize the latest in tablet technology enabling children as young as 3 years old to be able to manipulate the device and immerse themselves into the learning environment.
Differentiation
The alternatives lie somewhere in between traditional cartoons and video games. Because appisodes were developed specifically for use with tablet computers, they are maximized for both high resolution video and touch-screen technology combining the best of both the very best narrative cartoons with the very best interactive games.
Marketing
Companies will use a combination of direct marketing methods but also cross-promotion and embedded marketing techniques. For example, Disney has already started promoting their appisodes through the Disney Channel. Other appisode specific companies such as Kidaptive have relied on embedded ads within the iTunes platform to market their Leo's Pad product.
Championship
The major entertainment companies have large research and development divisions and entrenched management hierarchies that enable them to raise the necessary capital to fund their own ventures into this market. Other smaller app companies like Kidaptive have used the venture capital fundraising to help fund their ventures. In the case of Kidaptive, the founders have experience in both the 3D animation industry but they have also leveraged their Stanford connections to help in the research and development of their product.
The Ask And The Return
Investment into the research and development of a complete suite of appisodes is significant. Kidaptive has raised over $10 million dollars to date as a capital investment and they have only 1 product suite so far. Disney has more than 5 product suites, but their research and development costs specifically for the appisode market are not disclosed. The return is significant should the market for appisodes continue to grow. At an average of $5 per appisode, companies can project to have annual revenues worth several millions for each product suite. Currently, the appisode market is in the rapid adoption phase so investors can expect to be compensated within 1-2 years of investment.
Although children are spending more and more minutes on the computer each day, what they are learning from these activities is unknown. Appisodes were designed to do much more with tablet time for children than a simple digital babysitter. The value created for parents by helping them to become informed participants in their child's early education is the market gap that appisodes attempt to address.
Solution
Appisodes are a new product that attempt to address the problem by combining elements of storytelling and games together to provide an interactive experience for children 3-5 years old. Appisodes utilize the latest in tablet technology enabling children as young as 3 years old to be able to manipulate the device and immerse themselves into the learning environment.
Differentiation
The alternatives lie somewhere in between traditional cartoons and video games. Because appisodes were developed specifically for use with tablet computers, they are maximized for both high resolution video and touch-screen technology combining the best of both the very best narrative cartoons with the very best interactive games.
Marketing
Companies will use a combination of direct marketing methods but also cross-promotion and embedded marketing techniques. For example, Disney has already started promoting their appisodes through the Disney Channel. Other appisode specific companies such as Kidaptive have relied on embedded ads within the iTunes platform to market their Leo's Pad product.
Championship
The major entertainment companies have large research and development divisions and entrenched management hierarchies that enable them to raise the necessary capital to fund their own ventures into this market. Other smaller app companies like Kidaptive have used the venture capital fundraising to help fund their ventures. In the case of Kidaptive, the founders have experience in both the 3D animation industry but they have also leveraged their Stanford connections to help in the research and development of their product.
The Ask And The Return
Investment into the research and development of a complete suite of appisodes is significant. Kidaptive has raised over $10 million dollars to date as a capital investment and they have only 1 product suite so far. Disney has more than 5 product suites, but their research and development costs specifically for the appisode market are not disclosed. The return is significant should the market for appisodes continue to grow. At an average of $5 per appisode, companies can project to have annual revenues worth several millions for each product suite. Currently, the appisode market is in the rapid adoption phase so investors can expect to be compensated within 1-2 years of investment.
Major Players
Disney Junior Appisodes
Disney is a diversified multinational mass media corporation headquartered at the Walt Disney Studios in Burbank, California. Currently, Disney has the largest suite of appisode products including Jake and the Never Land Pirates, Sofia, Doc McStuffin, Frida Fairy Flies Again, Rescue Ronda, Ready for Takeoff, and Mickey Mouse Clubhouse. The technology within the Disney Appisodes varies from simple clicks to click and drag. The most important feature of the Disney Junior Appisodes is their unique offering of the Spanish language for some of their appisodes. Disney Junior Appisodes currently does not have a parent's feature for parents to track their child's progress. Watch the following advertisement for Disney's Junior Appisodes:
Disney is a diversified multinational mass media corporation headquartered at the Walt Disney Studios in Burbank, California. Currently, Disney has the largest suite of appisode products including Jake and the Never Land Pirates, Sofia, Doc McStuffin, Frida Fairy Flies Again, Rescue Ronda, Ready for Takeoff, and Mickey Mouse Clubhouse. The technology within the Disney Appisodes varies from simple clicks to click and drag. The most important feature of the Disney Junior Appisodes is their unique offering of the Spanish language for some of their appisodes. Disney Junior Appisodes currently does not have a parent's feature for parents to track their child's progress. Watch the following advertisement for Disney's Junior Appisodes:
Kidaptive
Kidaptive was founded in 2011 and has their headquarters in Menlo Park, California and currently employs 20 employees, they have raised more than $10 million to date. The flagship product suite by Kidaptive is Leo's Pad, a smart storytelling appisode developed for the iPad developed in collaboration with Stanford University researchers. Leo's pad is designed with a variety of interactive puzzles and adventures woven into a children's narrative. Leo's Pad is a product suite of 25 appisodes based on a young Leonardo Da Vinci and his group of friends who are each a playfully re-imagined historical figure, including Gally (Galileo Galilei), Marie (Marie Curie), and Fusch (Confucius). The technology includes built-in assessments for individualized learning, and a parent's pad application which allows parents with the information regarding their child's progress and interests. Leo's Pad is currently only available in English. Watch the following advertisement for Leo's Pad: