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-OF-
MILL 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