Both Leach and Parker began testing videos on their children, taking notes of what worked and what didn't work, as well as going to different preschools for research. Parker also had a 2-year-old child named Kaitlin. When Sheryl pitched Barney & The Backyard Gang to her father-in-law Richard, he asked that Kathy help to develop the character and show concept. Sheryl's idea was brought to production at The Lyons Group, Leach, who was Sheryl's father-in-law, agreed to back her with the project with $700,000 of his own money. The board she proposed to turned her down. At the time Sheryl Leach was working at DLM, Inc. Sheryl Leach proposed a preschool video series, which eventually would be Barney & The Backyard Gang, to DLM, Inc (Developmental Learning Materials). Leach thought the idea of a talking blanket and teddy bear interacting with children were a neat idea, however, the blanket concept was too hard to pull off. Her initial thought was the notice of children carrying snugly security objects, such as blankets and teddy bears. This prompted Leach to develop a show herself. At the time, the only thing that could hold Patrick’s attention was a “Wee Sing” video. At this time, the only preschool aged programs around were Sesame Street and Mister Rogers' Neighborhood, however, they appealed to a larger age range, rather than strictly toddlers. In fall 1987, Leach was stuck in a traffic jam thinking about the lack of videos that held the attention of her 2-year-old son, Patrick.
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