Viral Success of Baby Shark Launches $400 Million Media Empire

The viral children’s song “Baby Shark” has transformed its creator, Pinkfong, into a media powerhouse valued at over $400 million. This remarkable ascent began in June 2016 when Kim Min-seok, Pinkfong’s chief executive, approved the release of a 90-second video featuring the catchy tune. Since then, the song has amassed more than 16 billion views, making it YouTube’s most-watched video ever.

On October 3, 2023, Pinkfong made its debut on the South Korean stock market, with shares rising by more than 9%. Founded in 2010 as SmartStudy, the company originally focused on creating digital content for children up to 12 years old. At its inception, it had only three employees, including Kim and chief technology officer, Dongwoo Son. Reflecting on those early days, Kim described the office as “tiny,” recalling that they “didn’t even expect a salary at the time.”

From Humble Beginnings to Global Phenomenon

Pinkfong underwent several significant changes, including a strategic pivot to focus on toddlers. This shift led to an expansion in its workforce to around 340 employees and a shift towards simpler, educational content. It was during this time that “Baby Shark” emerged, captivating children and adults alike with its repetitive, upbeat melody.

The origins of “Baby Shark” can be traced back to the United States in the 1970s, often sung at children’s summer camps. Media analyst Kevin Chew from the Nanyang Technological University noted that the song’s catchy nature, akin to a K-pop hit, makes it “attractive for children, though possibly annoying for adults.” The song gained traction when its accompanying dance routine was featured at children’s events across Southeast Asia, leading to a surge in popularity as videos of people dancing to the song went viral.

By November 2020, “Baby Shark” claimed the title of YouTube’s most-viewed video. The song generated approximately half of Pinkfong’s revenue shortly after its release, serving as a launchpad for new content and merchandise.

Legal Challenges and Future Growth

Pinkfong’s success was not without obstacles. In 2019, the company faced a legal challenge when it was accused of plagiarizing an American composer’s work. However, South Korea’s Supreme Court dismissed the case, affirming that Pinkfong’s version was derived from a public domain folk song. This legal victory provided a boost to the company as it went public.

While “Baby Shark” accounts for about a quarter of Pinkfong’s revenue, Kim Min-seok is confident that the business can diversify beyond this single hit. The company’s other franchises, such as Bebefinn and Sealook, are expanding rapidly, with Bebefinn already generating around 40% of Pinkfong’s earnings.

Despite mixed reactions from parents, the brand’s educational content resonates with many families. One parent, Saleem Nashef, expressed appreciation for the educational value but noted that his wife finds “Baby Shark” excessively stimulating for young children. Nonetheless, Nashef’s daughter is set to celebrate her third birthday with a “Baby Shark” theme.

Pinkfong’s stock market debut raised nearly $52 million, which the company plans to invest in expanding its film and character lineup. Kim Min-seok envisions Pinkfong as a “tech-driven” content creator, utilizing viewing patterns and data analytics to inform new projects.

As Pinkfong navigates its future, it faces the challenge of proving that its success is not merely a one-hit wonder. Kim asserts that the company has already achieved what many creators aspire to, but now it must demonstrate its ability to innovate and grow beyond the iconic “Baby Shark.”