NICKELODEON
CABLE CHANNEL
REVENUES
REVENUES $1.1 BILLION 2002: $605mn from ADVERTISING $330mn from TV AFFILIATES $165MN from LICENSING AND MERCHANDISING
2002 STATISTICS
APPROX 50% OF CHILDREN 2-11 WHO ARE WATCHING TV ARE WATCHNG NICKELODEON IS OWNED BY VIACOM INC WAS ESTABLISHED1979 HIGHEST RATED BASIC CABLE NETWORK SINCE 1995
MARKET ADVANTAGES (2)
CHANNEL IS SO POPULAR THAT EVEN RUN-OFMILL SHOWS PULL LARGE AUDIENCES BEST PLACE FOR ADVERTISERS TO REACH KIDS; AD RATES TWICE THAT OF COMPETITION 300 FOCUS GROUPS A YEAR TO TEST SHOWS, FERRET OUT TRENDS HAS OWN ANIMATION (BURBANK) AND PRODUCTION (ORLANDO) FACILITIES, SO PRODUCTION EXPENSES TWO THIRDS LESS THAN COMPETITION
MARKET ADVANTAGES (2)
GIVES KIDS WHAT THEY WANT (FUNNY, WACKY, EDGY STORIES; CHARACTERS THAT LOOK AT LIFE FROM KIDS POINT OF VIEW; GROSS OUT PARENTSS; CHEEKINESS, ADVENTURE, INDEPENDENCE; COOL) BUT PLEASES PARENTS BECAUSE OF BAN ON SEX AND VIOLENCE LEVERAGES SUCCESS TO MAGAZINES, LIVE SHOWS, TOYS, MOVIES MAIN COMPETITOR, DISNEY, IN ECONOMIC DIFFICULTY
THREATS
FICKLE AUDIENCE OVEREXTENSION OF BRAND LIMITS POWER OF ADVERTISERS TO CHOOSE SLOTS ON POPULAR PROGS LESS WILLING TO WORK WITH ADVERTISERS TO PLAY UP BRANDS