The programme distribution division sells our television programming to third party broadcasters. Jetix Europe’s library of over 6,000 episodes² is refreshed each year with new programme production and acquisitions.

Our third party customers are typically free-to-air broadcasters. We currently have over 110 clients in 53 markets. Disney-ABC International Television (DAIT) services this division, allowing us to benefit from its market presence and global scale.

Strategy

The division relies on strong programming. We will maintain our current strategy of investing in great content. We will continue our policy of restricting investment to a limited number of great programmes to secure significant positions in our properties.

We employ a range of strategies to obtain the best programming. We co-produce with selected partners and acquire high quality finished product in the marketplace.

We will continue to leverage the global scale and market power of Disney’s international television distribution arm. In markets which are less developed, we will aim to place Jetix-branded programme blocks on free-to-air channels. These build our brand presence and act as powerful marketing for our channels.

Highlights in 2007

This year, we achieved strong sales to third party broadcasters through DAIT. We sold Pucca to our US alliance partner. Jetix Israel gained a commission from a local broadcaster for an original production.

Third party sales are primarily driven by our major co-productions. Power Rangers, W.I.T.C.H., A.T.O.M. Alpha Teens on Machines and Yin Yang Yo! all sold strongly during the year. Our Jetix-led co-productions Ōban Star-Racers and Pucca also performed well. All of these programmes returned solid ratings. Every one of them ranked as a top-two show in its territory for that timeslot.

Following the strong performance on air of the first series of Pucca, our Jetix alliance partner in the US, Disney ABC Cable Networks Group, has acquired the second series. Delivery is due next year.

We secured six new series during the year. We have commissioned another series of Power Rangers and a second season of Yin Yang Yo! from our Jetix alliance partner. Combo Ninõs, our co-production with SIP Animation in Paris, is also underway. We have acquired two new series, Urban Vermin and Iggy Arbuckle. We also picked up the second series of Captain Flamingo, following the success of the first series on Jetix channels.

We took delivery of 144 new episodes during the year, with new content from all of our major sources of programming – Jetix alliance co-productions, Jetix Europe- led co-productions and acquisitions. We had 124 episodes in production at the end of the year under review, compared with 93 in the previous year.

Priorities for 2008

We will continue to invest in content. Our new SVP Programming has put a strong programme development slate in place and we will build on that. We will commission new seasons of our most successful productions.

We will work closely with our alliance partner, collaborating to create great new content.

We will leverage DAIT’s global distribution capabilities to maintain our position as a leading supplier of kids entertainment. We will remain focused on delivering outstanding value to our customers with shows which perform strongly on-air.

2 Half hour equivalents as of September 30, 2007.

Strong on-air performance

Our flagship shows performed well on-air, driving future demand. Our five top selling shows delivered large audiences. In the markets in which they aired, they all ranked in the top two kids shows for their timeslots.

Pucca sold to Jetix in US

Our alliance partner in the US, Disney ABC Cable Networks Group, has acquired the second series of Pucca. This follows the strong on-air performance of the first series, which aired in the Jetix programme block on Toon Disney.

Library of over 6,000 episodes

Jetix Europe has one of the largest libraries of kids programming, with over 6,000 episodes. This library is continually refreshed with our new productions and acquisitions. 144 new episodes were added this year.