In an interesting anomaly, spending on children's programming has remained flat for the last five years, while the number of children's TV channels has increased.
In major markets around the world the number of channels are now at a high level. In the United States there are now 14 full-time children's channels, France and the UK have 17 each, and Germany now has 9, says a Screen Digest report cited by Marketing Charts.
"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.
This has forced companies to cut back on expenses and licensing their intellectual property, which has helped increase revenue growth.
The companies performing the best in this market are those that are better positioned globally. Other than the big three, Walt Disney, Nickelodeon and Cartoon Network, others performing well have been Chorion, Rainbow, Alphanim, BKN International and DIC Entertainment.
The big three account for two-thirds of the $9 billion in revenue of the top 25 companies in 2006.
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