NICKELODEON

1
NICKELODEON

• CABLE CHANNEL

2
REVENUES

• REVENUES 1.1 BILLION 2002
• 605mn from ADVERTISING
• 330mn from TV AFFILIATES
• 165MN from LICENSING AND MERCHANDISING

3
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

4
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

5
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

6
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