Kids' Music Soars to Top of Charts

March 27, 2006 — -- The music industry increasingly looks to cash in on music made for children who are beyond Barney but not quite ready for Beyoncé.

The top-selling Kidz Bop series offers kid-friendly versions of adult hits. Co-founder Cliff Chenfeld said the group has sold 7 million copies in less than five years. And he added that it's not just kids who are listening.

Disney's made-for-TV movie "High School Musical" is a runaway hit with children between ages 6 and 12 who have watched it multiple times. The soundtrack has spent five weeks on the Billboard Top 10.

"I think the music has to have somewhat of an appeal to the parents now," Chenfeld said. "We're kinda past the day where parents were kind of buying kids music, giving it to them and not even knowing what they're listening to."

And parents are one group still buying music on CDs, not just downloading it.

This year album sales across the board are down about 2 percent. But children's music is on fire -- sales are up nearly 60 percent.

Ralph Covert used to play in a Chicago rock band. He still sells out at hip clubs, but his fan base is a whole lot younger.

"I'm not trying to dumb it down, you know?" Covert said. "In a sense, I'm trying to smarten it up. And the parents end up enjoying it as much as the kids."

Established musicians see a lucrative market. Parents who enjoy Jack Johnson have picked up his new "Curious George" soundtrack while shopping at Whole Foods. And folk singer Laurie Berkner's latest CD is on sale at Starbucks.

"In my car, I've got like five CDs," one parent told ABC News. "Four are Laurie Berkner CDs and one Springsteen CD."

And remember the '80s band Devo? Children of their fans can now listen to Devo 2.0, updated for young listeners.

"There's always kids," Chenfeld said, "and they always like music."

And, as long as the parents like it too, these albums are as good as gold.

ABC News' Kate Snow reported this story for "World News Tonight."