Leading Children’s TV Companies Buck Trend in Down Market

Broadcaster spending on children’s programming has remained flat over the past five years while the home entertainment market overall has declined; nevertheless, the leading players have significantly increased revenue by leveraging their children’s brands worldwide, according to research from Screen Digest, MarketingCharts reports.

The report, “The Business of Children’s Television,” examines the international market for children’s TV, finding that the cutting of expenditures and the leveraging of intellectual property rights have resulted in impressive revenue growth:

At the same time, the number of children’s channels has grown: There are now 14 full-time children’s channels in the USA, 17 in France and the UK, and nine in Germany, according to the report:

The report shows that the value of broadcaster investment has remained virtually unchanged over the last five years, decreasingly slightly from 1.1 billion euros in 2002 to 1 billion euros in 2006.

“Broadcasters view the children’s audience as one of the least rewarding in terms of advertising revenue; the threat of, and in some countries, the actual introduction of restrictions on advertising to children has further reduced income. However our research shows that despite the tough environment, producers can make money,” said Tim Westcott, the author of the report.

“Children’s programming - particularly animation - travels well and has a longer shelf-life than other genres like drama and factual programming. The ancillary revenues for hit children’s properties can also make it a highly profitable business.”

MarketingCharts provides more findings from the report.