Jetix Europe is one of Europe’s largest kids entertainment companies. We create and acquire original content, which kids will love. We deliver that content in a variety of ways, including television channels, websites, DVDs, magazines and toys. We are majority owned by the world leader in family entertainment, The Walt Disney Company (Disney). Together with Disney we are building the Jetix brand into a global franchise¹.

Our market and competitive environment

Jetix Europe is active in the kids entertainment market. The scale of our marketplace is governed by the amount of time kids have available for leisure. We compete for a share of that leisure time with media owners and with other activities.

We operate mainly in Europe and the Middle East, although we also own some rights in other territories and occasionally represent properties beyond our core region.

Our pan-European network of television channels is our primary source of revenue. We earn subscription fees from the pay television distributors which carry our channels. We also sell promotional airtime on these channels, which generates advertising revenue.

We compete for carriage and revenue from pay television operators with a range of other kids television channels, and more generally with other television channels and content. We compete for advertising revenue with other media owners targeting kids, as well as with general media that reach our audience.

Jetix Europe is one of four companies with a pan-European kids’ network. Our main competitors are Cartoon Network from Time Warner, Viacom’s Nickelodeon and The Disney Channel. In most markets we also compete with a mix of private and state-funded kids channels and programme blocks.

We also sell our programming to third party broadcasters, primarily for use on free-to-air channels. Programme ratings and the advertising revenue kids programming can deliver drive broadcaster demand. Regulatory considerations also come into play in many markets.

We compete with both local and international kids programming suppliers and with other genres of programming. The supply of programming is typically highly fragmented. Although we are a major player in these markets our market share is therefore relatively low.

We license consumer products rights to a wide range of manufacturers, media owners and service providers. We compete in this space with other kids intellectual property owners, both from television and other media. This too is a fragmented market with numerous companies promoting many different characters and properties.

The kids entertainment market is changing rapidly. Technological developments are opening up new ways of reaching and entertaining kids. And we also know that kids are early adopters. It is therefore vital to keep pace with the latest innovations.

Traditional forms of entertainment, notably television, remain popular, but digital delivery is already broadening the scope. New forms of content are emerging which complement television programmes. Kids in the future will enjoy a wider range of entertainment on a greater variety of platforms. Our objective is to get them great content, when and where they want it.

Our strategy

Excellent content is at the heart of our strategy. Each of our divisions depends for its success on the appeal our content has for its chosen audience.

We invest heavily in securing high quality content from a wide range of sources. We have a three-tiered approach. We co-produce with our colleagues at Disney, through Disney’s Jetix Animation Concepts. We co-produce internationally, with other leading production companies. And we acquire properties, either on a pan-European basis or for a specific territory.

As a major player in Europe we benefit from scale when sourcing our content. We are able to invest in a number of new properties each year, and are therefore less reliant on individual successes.

Wherever possible we acquire long-term control over our properties rather than agreeing short-term licences. This ensures that we receive the full benefits of the successes we create.

We have a clearly defined and focused brand. Our audience understands that Jetix is the home of adventure and cheeky humour. We actively promote the brand to give our target audience a strong sense of what we offer.

Pay television distributors typically include our channels in their basic-tier offerings. Being able to reach the highest possible number of subscribers gives us the opportunity to maximise our audience and advertising revenue.

The Jetix brand enjoys global recognition as a result of our alliance with Disney. Jetix Europe employs the Jetix name in Europe and the Middle East. In the US, Latin America and Asia it is Disney that fully owns the Jetix-branded operations. Our brand’s global appeal enhances our credibility in Europe, particularly amongst commercial partners and distributors.

We are leveraging our brand appeal, the popularity of our content and our substantial audiences across all of our activities. We are, for instance, building our online presence with the television characters our audience loves. The programming we sell to third party broadcasters is also raising awareness for our consumer products. We actively look to cross-promote different media, for example by driving traffic from on-air to online.

Excellent content and a strong market position in Europe are the cornerstones for our future development. We will build on these strengths. We will also develop new media offerings as technology stimulates new forms of demand. We plan to continue delivering great content that engages and entertains our audiences across all media.

Our resources and relationships

Our depth of content, our staff and our market presence all help us to deliver on our strategy.

We own² one of the world’s largest libraries of kids programming, with over 6,000 episodes. We own both pay and free television rights in most of our territories. We also own consumer products rights for most of our properties. We continually refresh our library with new productions and acquisitions.

As a creative media company we depend on being able to attract and retain high-quality personnel. We employ over 350 people in 10 European countries. Our people are passionate about kids entertainment. They are dedicated to creating and delivering the very best entertainment experience.

We derive a competitive advantage from our numerous commercial relationships, many of which have been built up over a long period of time. Mutually beneficial relationships with pay television distributors, commercial advertising partners, production companies, other broadcasters and a wide range of licensees underpin our success.

Jetix Europe is in a sound financial position. This allows us to invest where appropriate, and makes us an attractive partner.

1 Disney fully owns the Jetix operations outside of Europe and the Middle East.

2 Or control through a long-term lease.