In a move that's being hailed as both a strategic pivot and a white flag of defeat, Disney has officially partnered with Pocket.watch, the powerhouse management firm behind some of the biggest kid influencers on YouTube.
Announced in September 2025, this collaboration introduces the "Creators Collection By Pocket.watch" to Disney+, marking the first time the family-friendly streaming service has integrated user-generated content from independent creators. For a century-old media behemoth like Disney, this feels like an admission: the empire's traditional stronghold on children's entertainment is crumbling under the relentless tide of YouTube.
The Harsh Reality: YouTube's TV Domination
You've likely heard the whispers, but the numbers scream the truth. YouTube has long surpassed every major streaming service in TV viewing time, especially among kids. According to Nielsen data from April 2024, children aged 2-11 watched *three times* as much YouTube content as Disney+ on connected TVs. Fast-forward to July 2025, and YouTube commanded a staggering 10.4% of all U.S. TV usage - edging out Disney's combined portfolio (Disney+, Hulu, ESPN) for the top spot that month. By mid-2025, YouTube's average share hovered at 11.8%, with school-aged kids (2-11) making up 17% of its audience.
Disney's own legacy channels tell an even bleaker story. The Disney Channel, once a primetime powerhouse averaging nearly 2 million viewers in 2014, has plummeted to a mere 132,000 by 2023 - a 93% nosedive over a decade. By 2025, the decline shows no signs of slowing, as cord-cutting and streaming habits accelerate the erosion of linear TV. Insiders report that YouTube's influence now dominates strategic discussions at Disney's Burbank headquarters, where executives grapple with how to recapture the "Disney adult" demo while desperately courting Gen Alpha.
The Partnership: Controlled Chaos on Disney+
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Enter Pocket.watch, the digital studio that's been quietly building an empire of kid-centric YouTube stars since 2018. This partnership grants Disney access to content from 53 creator brands under Pocket.watch's umbrella - collectively boasting 1.2 billion subscribers and a jaw-dropping 7 billion monthly views (or 7.4 billion, per some reports). But this isn't a wild, open UGC free-for-all that could tarnish Disney's meticulously curated image. Instead, it's a "whitelist" of vetted, high-quality videos - handpicked hits that align with Disney's family values and thematic priorities.
The rollout kicked off with 11 videos themed around Disney's live-action Lilo & Stitch remake, released earlier in 2025.
Think unboxings of Funko Pops, top-10 comparisons between the 2002 animated classic and the new film, and nostalgic deep dives into Lilo & Stitch: The Series. These shorts and shows are now tucked into Disney+'s "All Collections" section under the Search tab, available exclusively in the U.S. for now.
Creators like 13-year-old multimillionaire Ryan Kaji - whose Ryan's World channel has ballooned to 38.7 million subscribers - and 11-year-old Ukrainian sensation Diana Kidisyuk of Kids Diana Show, with over 120 million subs, are prime examples of the talent pool.
Diana's bubbly adventures and Ryan's toy-fueled escapades have already proven their streaming chops on platforms like Hulu and Peacock, where Pocket.watch content views have surged fivefold year-over-year.
Pocket.watch, led by ex-Disney exec Chris Williams, isn't new to this game. The company has inked deals with Hulu (doubling its titles since 2023), Peacock, Amazon Kids+, and even The Roku Channel, distributing across 43 platforms in 81 countries. For Disney, it's a low-risk bet: proven viral content without the hefty costs of original productions or exclusive licensing wars.
A Win-Win for Creators and Platforms
This alliance is a boon for everyone involved- except, perhaps, Disney's old guard. For professional creators, it's a shiny new monetization avenue: repurpose existing YouTube libraries for premium streaming royalties, expanding reach without extra production. Pocket.watch amplifies this by co-developing IP extensions like shows, games, toys, and apps, turning one-off videos into full franchises. Ryan's World, for instance, parlayed its YouTube fame into a theatrical film last summer and the largest independent kids' streaming service in the U.S., Ryan and Friends Plus.
For platforms like Disney+, it's genius: battle-tested hits that boost engagement and retention among fickle young viewers, all without sinking billions into unproven originals. As Fiction Horizon noted, this could herald "more interactive and personalized experiences," testing Disney's mettle in a creator-driven era. It's a far cry from the days of Maker Studios (Disney's ill-fated 2014 YouTube acquisition, which bled partners and execs amid contract woes), showing a more cautious, collaborative approach.
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What Happens Next? The Streaming Arms Race Heats Up
Disney's olive branch to YouTube creators isn't happening in a vacuum. With Netflix dominating eight of the top 10 streaming titles in July 2025 (hello, Squid Game racking up 5.4 billion minutes), and broadcast TV scraping a dismal 18.5% of total viewership, expect rivals to follow suit. Peacock and Hulu are already deep in Pocket.watch's orbit - will Netflix launch its own creator hub? Could Warner Bros. Discovery tap TikTok stars for Max?
For Disney, the real test is sustainability. As Gen Alpha's tastes evolve faster than a viral challenge, maintaining curatorial control while scaling creator integrations will be key. This partnership isn't just about survival; it's Disney's boldest bid yet to blend its magical legacy with the chaotic creativity of the internet age. In the end, it might just be the hybrid formula that keeps the Mouse House ahead of the curve - or at least, not left in YouTube's dust.
*This article draws on recent Nielsen reports and industry announcements as of October 2025.*
