This Business is Secretly Making People RICH (and it's still EARLY)

Summary

The video explores the incredible success of kids' YouTube channels like Coco Melon, which generate massive revenue through ads, merchandise, and other media ventures. It traces Coco Melon's origins, from basic nursery rhymes to a media empire acquired by Moonbug Entertainment for $13 million in 2019. The rise in kids' content is driven by the demand for educational yet entertaining videos. The video also introduces Invido AI, a tool that allows creators to produce high-quality kids' videos quickly. The host shares tips for creating successful kids' content and emphasizes the importance of relatable characters and stories over perfect animation.

Takeaways

• 😀 The most viewed YouTube channel in the world is Coco Melon, not Mr. Beast, with over 200 billion views, while T-Series holds the top spot with 293 billion views.
• 😀 Five of the top 10 most viewed YouTube channels in 2025 are kids' channels, showcasing a massive trend in children-focused content on YouTube.
• 😀 Kids' channels, like Coco Melon, are earning substantial revenue, with Coco Melon pulling in an estimated $1.5 million per month from ad revenue alone.
• 😀 Kids' content on YouTube is highly profitable due to the repetitive nature of kids' viewing habits, where they watch the same videos over and over.
• 😀 The lifetime value of a kids' video is higher than content for other demographics because kids' interests in content remain constant, making it evergreen.
• 😀 Coco Melon's success story started in 2006 as Check Gate, with simple animations of nursery rhymes, evolving into a global brand in 2017 after a rebranding.
• 😀 In 2019, Renee Ruckman founded Moonbug Entertainment and bought several top kids' channels like Coco Melon, Little Baby Bum, and Blippy, creating a media empire.
• 😀 By 2021, Moonbug Entertainment's revenue skyrocketed to $230 million with a profit of $100 million, leading to its $3 billion sale to Blackstone.
• 😀 Kids' channels are profitable not only from YouTube ad revenue but also from expanding into Netflix, merchandise, live shows, books, and even theme park deals.
• 😀 There are still massive opportunities in the kids' content space, especially for educational content disguised as entertainment, which parents are seeking for their children.
• 😀 AI tools like Invido allow creators to generate kids' videos quickly with minimal resources, democratizing content creation and reducing the need for traditional animation teams.

Q & A

Why is Coco Melon the most viewed YouTube channel, despite not being in the top 10 for overall channels?

Coco Melon is the most viewed kids' channel on YouTube, with 200 billion views. It's not in the overall top 10 because the top spot is held by T-Series, an Indian music channel with 293 billion views, but Coco Melon dominates the kids' content space.

How do kids' channels like Coco Melon generate such high revenue?

Kids' channels like Coco Melon generate substantial revenue primarily from ad revenue. With over 1.5 billion views per month, a channel could easily make $1.5 million per month at a $1 CPM. However, their revenue streams also extend to merchandise, Netflix shows, live events, books, and other licensed products.

What role did Renee Ruckman play in the success of Coco Melon?

Renee Ruckman recognized an opportunity in the kids' YouTube market. In 2019, he founded Moonbug Entertainment, which bought Coco Melon for $13 million. He expanded the brand into various platforms and revenue streams, significantly increasing its value and profitability.

How did Moonbug Entertainment's strategy increase the value of Coco Melon?

Moonbug expanded Coco Melon beyond YouTube. They licensed it for Netflix, created merchandise, live shows, books, and even struck deals for a theme park. These steps turned Coco Melon into a multi-channel, multi-platform brand that eventually led to a $3 billion acquisition by Blackstone.

What makes kids' content so profitable compared to other types of content on YouTube?

Kids' content is incredibly profitable because children watch the same videos repeatedly, which increases the lifetime value of each video. Additionally, kids' content is evergreen, meaning that it remains relevant for years, generating consistent views and ad revenue.

What is the gap in the kids' content market that creators should focus on?

The gap is in **educational content** that is also entertaining. Parents are looking for videos that teach their children valuable lessons, such as emotional intelligence, while keeping them entertained. Channels like **Bluey** succeed because they mix education with engaging stories.

How can AI tools like Invido help in creating kids' videos?

AI tools like **Invido** enable creators to produce kids' content quickly and efficiently. With just a well-structured prompt, creators can generate videos with custom characters, animations, and even educational themes. This reduces the need for expensive animation studios or production teams.

What are the key elements to include in a prompt when using AI tools to create kids' videos?

When creating a prompt for AI video generation, include these key elements: the target age group, animation style, educational elements, and the specific characters you want to feature. This will help ensure the video is both engaging and educational.

How can AI tools assist in translating kids' content into other languages?

AI tools like Invido can automatically translate videos into other languages with a simple prompt, allowing creators to quickly adapt their content for international audiences. This saves time compared to manually translating and re-recording content.

What are the main strategies for success in creating kids' content on YouTube?

To succeed in kids' content, focus on creating educational material, develop relatable characters that resonate with different children, and tell stories based on everyday experiences. Content should prioritize relatability and learning, not just entertainment.