PROFITABILITY TREND IN Q2 2024 CONTINUES BUILDING ON GAINS FROM 2023 AND Q1 2024
Kartoon Channel!’s Paid Subscribers on Amazon Prime Video Grows by 120% Year-Over-Year from June 2023 – June 2024
Premier Entertainment Destination for Kids, Now Carried on 16 Platforms in US; Goal of Growing into a ‘Netflix for Kids’ Becoming a Reality
BEVERLY HILLS, Calif., July 11, 2024 – Kartoon Studios (NYSE American: TOON) continues to deliver on its mission to grow Kartoon Channel! into a premier entertainment destination for kids, as the platform continues growing profitability, platform carriage, and paid subscriber growth entering Q3 2024.
As previously announced, after four years of investment in content, infrastructure, and marketing, Kartoon Channel! reached breakeven at the end of 2023 and became profitable in Q1 2024. Kartoon Channel!’s paid subscriber growth on Amazon Prime Video surged by 120% from June 2023 – June 2024. Over the same time period, the platform achieved a 28% year-over-year growth in paid direct-to-consumer streaming subscribers across all its streaming services which include Apple iOS, Amazon Prime, Amazon Fire, Android TV, Android Mobile, Tubi, Roku, Pluto, Xumo, Comcast, Cox, Dish, Sling, Samsung, and LG Smart TVs.
Above: Kartoon Channel! subscriber growth and projected growth.
Andy Heyward, Chairman & CEO of Kartoon Studios commented: “We are now witnessing ongoing month-over-month growth for Kartoon Channel! This growth has been fueled by management, led by Todd Steinman, President of Kartoon Studios’ Toon Media Networks, as well as a carefully executed strategy, and ongoing expansion of network coverage. As a provider of compelling original content combined with curated acquisitions, Kartoon Channel! has now firmly established itself as a premier destination for young viewers. In the children’s media landscape, we are witnessing the third wave of television distribution, as children migrated from Saturday morning network television, to children’s cable TV, à la Nickelodeon, and now to streaming, with Kartoon Channel! positioning itself to be at the forefront of this streaming revolution for kids.”
Heyward added: “The first stated goal of building a children’s channel system that would be nothing less than a ‘Netflix for Kids’ is becoming a reality. We believe Kartoon Studios’ streaming business (including Ameba) is poised to become a pivotal revenue driver for the company for years ahead. Unlike YouTube, which has endless content, Kartoon Channel! provides highly curated content, which means it is SAFE. We witness this not only in our growth numbers and improved profitability, but also in the published rankings from viewers in the Apple App store.”
Todd Steinman, President of Kartoon Studios’ Toon Media Networks stated: “The strong year-over-year growth in paid streaming subscribers is a testament to Kartoon Channel!’s commitment to quality and its diverse library of safe content. We actively manage for growth and the numbers keep rising each month. This significant growth is even more remarkable given our commitment to operational efficiency and cost control measures, including prudent marketing budgets aimed at driving long-term, profitable growth. As Kartoon Channel! continues to grow, we remain guided by a strategy emphasizing safety, compelling content, and viewer satisfaction.”
TOP performers across the Kartoon Channel! system include:
Super Mario 3
Shaq’s Garage,
Rainbow Rangers
Peppa Pig
Angry Birds
Whereas the Kartoon Channel! app has an ad-supported tier, the $3.99/month subscription product on Amazon Prime is commercial free and growing rapidly. Kartoon Channel! is a safe product, and the content is curated for parents to know that their kids are watching content, that is free from violence, negative stereotypes, and inappropriate language. It is optimistic and authentic, and kids and parents are seeing that.
Heyward concluded, “Kartoon Studios projects continued growth as we lean into the “KARTOON STUDIOS’ WINNIE-THE-POOH” launch in 2025, where we expect to see another surge as Kartoon Channel! on Amazon Prime Video!, will begin programming exclusive episodes of the timeless property available nowhere else.”
