Competition from other media will limit growth for children's TV channels
Los Angeles, CA (PRWEB) March 23, 2012
Competition from alternative media and low disposable income are hampering growth in the Children's TV Channels industry. Different children's entertainment platforms include streaming services, downloads, video games and mobile applications. In the five years to 2012, advancements in technology have made many child-friendly devices affordable to US consumers. Consequently, competition for children's TV shows escalated. On the other hand, advertising revenue dropped off suddenly due to high unemployment and low disposable income. According to IBISWorld analyst Doug Kelly, “this caused a sudden and steep drop off in industry revenue in 2009, which has not yet been recovered.” Consequently, IBISWorld estimates revenue will fall at an annualized rate of 2.4% to $5.6 billion in the five years to 2012. This decline includes a 0.5% increase in 2012 due to slowly recovering disposable income and continued competition from new media.
Regulators and interest groups strictly monitor children's TV and advertising content. Organizations like the Children's Advertising Review Unit (CARU) analyze children's shows to make sure that they are adhering to federal regulator guidelines. Consequently, children's TV channels must carefully assess the content they air. Kelly says “competition within the industry is also at the forefront of the discussion.” In 2012, Disney is on track to overtake Viacom's number one position in the industry, according to February 2012 Nielsen ratings. Nielsen is a firm that tracks consumer behavior across a variety of media. As these companies vie for the top spot in the Children's TV Channels industry, they are increasing expenditures on content and growing their market share, which is estimated to be a joint 85.3% of industry revenue in 2012.
Despite escalating competition, disposable income growth is projected to benefit industry revenue in the next five years. As industry companies develop a presence on newer platforms, this content will also promote their TV shows. Furthermore, the number of K-12 students is projected to expand in the next five years, helping expand the industry's core audience. As a result, revenue is forecast to grow at marginal rate over the next five years.
For more information visit IBISWorld’s Children's TV Channels in the US industry page
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This industry includes TV channels that primarily target audiences below the age of 14 (with an average TV rating below TV-14). These channels may be broadcast or transmitted via cable or satellite.
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