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Time cannibalization: Will added internet play value result in fewer dollars for the industry?
October 4, 2007
I visited the Toy Wishes Holiday Preview this week and got a look at what is being touted as the best products for the coming year. I noted with great interest the number of toys that now offer added play value through the internet.
This is great news for the child as the added internet play is far more than bells and whistles; it offers them some really great expanded play value. This is also great news for the traditional toy industry because it allows us to take classic toys like plush animals and collector cards, and by adding an internet dimension, make what is old new again.
But is it good news for the industry? An interesting dimension to this expansion in play value is the simultaneous expansion in the time spent on a specific toy.
Think about it. A plush animal without an internet component really does not take time away from other toys. It can be can be enjoyed as part of playing with another toy, it can sit passively in a child’s lap while he or she plays, or it can be put aside after a quick, and some times very need, hug.
A plush animal with an internet component is, however, a different matter. The child puts the plush animal down or puts it in his or her lap but then spends a dramatically extended amount of time on that specific plush animal’s website playing games and engaging in fantasy play. While they are spending their time on line, they are obviously not spending it playing with any other toys.
The challenging news for the industry could be that children may spend more time playing with a specific toy leaving less time for other toys. In a world in which children have sharply reduced play time due to expanded homework and organized extra curricular activities, this cannibalization of time could result in loss of dollars to the industry. Why? Because time spent playing with one toy means time not spent playing with another. Less available play time means the need for fewer toys. In other words, more time playing with Webkinz means less time playing with and, as a result, fewer dollars spent on Bratz or Barbie.
We often think in terms of one toy product cannibalizing dollars from another toy product. This is bad for the company losing the dollars but still good for the industry as it keeps the purchase in the toy section. In this case, however, time cannibalization could mean fewer dollars all together.
It will be interesting to see how the industry copes with this possibility. One potential answer could be to use the internet to link play between different toys so that, instead of playing with one toy at a time, children could play with several toys simultaneously.
It will be interesting to see how it all plays out. So this is what the 21st century is like.
Posted by Richard Gottlieb on October 4, 2007 | Comments (1)
