Global Children's Television Market Heats Up

Strategic Insights -

As the worldwide market for children's television programming surges to over $100 billion in potential revenue, top American networks are vying for dominance. The Cartoon Network, Nickelodeon, and Fox Children's Network are racing to establish themselves as leading global players, with strategies that involve creating local partnerships, tailoring programming for specific countries, and leveraging existing brand recognition.

Key Takeaways:

  • The global children's television market is worth over $100 billion in potential revenue, with a huge growth potential in distribution systems, particularly in cable and satellite delivery.
  • The three leading American networks, Fox Children's Network, Cartoon Network, and Nickelodeon, are expanding their global presence through partnerships, co-productions, and local content.
  • Nickelodeon is focusing on creating local partnerships and tailoring programming for specific countries, with joint ventures in Britain, Germany, and Australia.
  • The Cartoon Network is relying on its 8,500-strong library of cartoons, with many of its characters, such as Bugs Bunny and the Flintstones, already having a strong international appeal.
  • Fox Children's Network has set up similar networks on Fox cable channels in Latin America and Australia and is negotiating for a 24-hour children's channel in Britain.

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  • The combined company will have both the distribution potential and the children's programming expertise to leap into the global race quickly.
  • Merchandising is expected to play a big part in the revenue of the American television companies from their global forays, with retail sales of children's licensed products in the United States representing a $100-billion-a-year business.

Statistics:

  • The global children's television market has a potential revenue of over $100 billion.
  • The domestic market for children's licensed products in the United States is a $100-billion-a-year business.
  • Advertisers spend $750 million to $800 million nationally on children's television shows, with additional "spot" buying in local markets estimated to approach that figure.
  • The Cartoon Network has 22 million subscribers in the United States and 28 million subscribers in Europe.
  • Nickelodeon has joint ventures in Britain, Germany, and Australia and 70 nations worldwide.
  • Fox Children's Network broadcasts 19 hours of children's shows a week and has 3,300 titles in its library.

Sources:

  • Jon Mandel, senior vice president of Grey Advertising
  • David Levy, senior vice president of international advertising sales at Turner
  • Margaret Loesch, president of the Fox Children's Network
  • Betty Cohen, president of the Cartoon Network and TNT International
  • Jeff Dunn, executive vice president for strategy and business operations of Nickelodeon