Marketplace

Jetix Europe operates in the kids entertainment market. We reach our audience through a number of different channels and media. Most business lines are focused on Europe and the Middle East. We own some programming and consumer products in other territories and have representation in these markets.

Pay television is our most important market. We typically supply our channels to pay television distributors‚ who offer multi–channel packages to their consumers. In most territories Jetix is a basic–tier channel‚ supplied to the majority of the distributor’s customers. In return‚ Jetix receives a fee per subscriber.

We are also active in the advertising market‚ selling commercial airtime‚ sponsorship and other media space on our channels and websites. We compete with adult and other kids channels‚ as well as other media‚ for the promotional spend that is targeted at our audience.

In the Netherlands we operate a free–to–air television channel‚ and in other territories we sell our programming to third party free–to–air television channels. We compete with other suppliers of children’s programming and sell both individual programmes and packages of programmes to broadcasters. We typically sell rights to broadcast a limited number of runs within a defined period.

We license consumer product rights to a wide range of manufacturers‚ media owners and service providers. We depend upon the continued attractiveness of our intellectual property to potential consumers to add value to their products and services.

Market development and competitive position

The kids entertainment market is changing rapidly as technological developments open up new ways of reaching our audience. We are seeing the development of broadband distribution of television programming‚ downloads to portable devices and television on mobile phones. We may also see completely new categories of content emerge. Technology is also changing the content production process. This is reducing costs and allows us to extend our creative range.

We know that kids are early adopters of new technology and each generation becomes more technology literate. Having said that‚ we still expect that traditional television channels will remain the dominant distribution mechanism in the medium term.

We want to reach our audience through all possible means. We are actively developing content formats for new distribution channels‚ to allow kids to consume our product whenever and wherever they want. We are ready to use these new channels as they become economically viable.

We are currently one of only four companies with a pan-European kids network of television channels. The other major groups are Time Warner’s Cartoon Network‚ Viacom’s Nickelodeon and our parent company’s Disney Channel‚ and all of their related channel brands. In most territories there is also a mixture of local private and state-funded kids channels and programme blocks.

We compete with other channels to produce or acquire the best kids television programming. In the free-to-air television sales market we compete with a range of other programme providers. In consumer products markets the competition includes all kids’ intellectual property owners – from any media‚ not just television.

We are a major player in programme sales and consumer products. However‚ these markets are highly fragmented and our market share is commensurately low. To succeed‚ we must ensure that our future programming and characters attract broadcasters and licensors.