Baby Shark Dance, the viral children’s song with the catchy “doo-doo-doo” tune, is currently the most-viewed video in YouTube history, accumulating 16.4 billion views since its 2016 release. On average, it receives over 4.7 million plays per day equivalent to the combined views of the top 10 Taylor Swift videos.
Despite its global popularity, the South Korean company behind the 2-minute video, Pinkfong, has not become a billion-dollar empire. In 2023, Pinkfong generated roughly $67 million in revenue, including YouTube earnings, according to the Wall Street Journal.
The main reason is the strict regulations for “Made for Kids” content on YouTube following Pinkfong’s 2019 agreement with the U.S. Federal Trade Commission (FTC) to comply with the Children’s Online Privacy Protection Act (COPPA). Since 2020, kids’ channels cannot run personalized ads and face restrictions on comments, notifications, and subscriber engagement, significantly reducing revenue. Garrett Johnson, a Boston University professor studying the 2019 agreement, estimates that without these restrictions, Baby Shark could have generated two to three times more revenue.
Originally just a children’s sing-along, the video became a global phenomenon nearly a decade ago. In 2020, Baby Shark Dance surpassed Despacito as the most-viewed YouTube video, and it continues to extend its lead. It has been released in 25 languages, with the U.S. contributing the most views and Brazil generating the most likes.
Pinkfong, formerly SmartStudy, had considered an IPO in 2019 but delayed it due to valuation disagreements. On November 19, Pinkfong went public on the KOSDAQ at 38,000 KRW ($26) per share, giving the company a market value of nearly $375 million. Most revenue comes from content distribution including YouTube, streaming platforms, and live performances while licensing and merchandise contribute a smaller portion. Operating profit in 2023 was approximately $13 million. The IPO is expected to raise $50 million (excluding costs) for new content development, aiming to launch three new entertainment brands by 2028.
Beyond Baby Shark, Pinkfong’s IP portfolio includes Bebefinn and Sealook. CEO Kim Min-seok revealed that Bebefinn now surpasses Baby Shark in content revenue. The company focuses on “snackable” content that is easy to watch and share, monetizing through ads, streaming rights, licensing, games, live shows, and long-form projects.
Pinkfong’s YouTube network now boasts over 280 million subscribers, solidifying its position as a major global player in children’s digital content.
Sources: Znews