Report points to potential profits
Disney, Nickelodeon and Cartoon Network accounted for 66% of the $9 billion revenues reported by the top 25 tyke companies in 2006, according to “The Business of Children’s Television,” published by Screen Digest.
Despite fierce competition, the big three achieved impressive revenue growth by exploiting rights in what is a declining market in terms of global spend, which dipped from $1.52 billion in 2002 to $1.38 billion in 2006.
These broad figures disguise the fact that in the biggest TV markets — North America, Germany and the U.K. — spend on tyke fare has decreased, while Belgium, Italy and Spain have seen a moderate increase.
The home entertainment market for children’s shows has also declined, from $1.66 billion in 2002 to $1.26 billion in 2006.
Yet despite the reduction in TV budgets, companies like Rainbow, Chorion, Alphanim, BKN Intl. and DIC Entertainment are thriving because they have adopted the right strategies to succeed in a global market.
“Children’s programming — particularly animation — travels well and has a longer shelf-life than other genres like drama and factual programming,” said report author Tim Westcott. “The ancillary revenues for hit children’s properties can also make it a highly profitable business.”