Google share price down, to launch YouTube Kids

Googles online video streaming service will introduce a new application for children next week that will be compatible with smartphones and tablets.

YouTube, which has over 1 billion users, will launch its new service on Monday in the U.S. and the application will be available for download through Googles Play Store. The software will work on mobile devices powered by the Android operating system, with no indication that it will adopt Apples iOS.

The company said in a statement that YouTube Kids will feature children-appropriate video content, including famous shows like “Reading Rainbow” and “Mother Goose Club”.

The application was designed to be easily operated by children via its big icons and reduced to minimal scrolling. The service will be free and separate from the widely used YouTube mobile application.

YouTube Kids will also offer ways for parents to decide how much time their kids are allowed to spend on the application among other parental controls options.

So far Google, like many of its peers, have been reluctant to provide services to consumers under the age of 13. However, earlier this month the company purchased mobile-application developer Launchpad Toys Inc for an undisclosed amount to expand its service reach to children.

However, the companys wave of Toontastic applications are only compatible with Apples iPhone and iPad, a fact that may soon change as YouTube Kids launches.

Google intends to create a safe environment for children with as it teamed-up with animated films and games producer DreamWorks, The Jim Henson, which created The Muppet show and Sesame Street, and National Geographic on the project.

The application is expected to be announced on Monday at the Kidscreen Summit, during which YouTube’s Head of Family/EDU Malik Ducard is set to give the opening speech.

YouTube did not disclose exactly how the new service would be generating revenue, although the possibility of displaying advertisements could prove to be very lucrative. Many advertisers of kids-related products are struggling to find online opportunities to promote their merchandise.

Google gained 0.59% and closed at $542.87 in New York, marking a one-year decrease of 9.19%. The company is valued at $370.71 billion. On Friday the stock slid 0.11% during after-hours trading.

According to the Financial Times, the 40 analysts offering 12-month price forecasts for Google have a median target of $625.00, with a high estimate of $700.00 and a low estimate of $530.00. The median estimate represents a 15.13% increase from the last closing price.