Kartoon Studios announced its direct-to-consumer streaming services, including Kartoon Channel!, and achieved profitability through the first two months of 2024, driven by sustained subscriber growth and streamlined operations. As recently reported, Kartoon Channel! achieved record revenue and EBITDA breakeven in the fourth quarter of 2023. Available on a wide array of platforms, Kartoon Channel! has achieved remarkable domestic penetration, reaching nearly 100% of U.S. television households, as its momentum of growth continues. Kartoon Channel! is also expanding its reach internationally, with dedicated channels and branded blocks in key markets around the world, representing a target audience of nearly 1.8 billion people.
Andy Heyward, Chairman and CEO of Kartoon Studios, provided context about the outcome: “It has been less than four years since Kartoon Channel!’s launch, and in that time, it has rapidly ascended to become a premier destination in children’s entertainment with a vast selection of family-friendly content. The transition to profitability in that short time is a testament to Kartoon Studios' strategic focus on growing our subscriber base, reducing customer acquisition costs, maintaining a lean operating infrastructure, and the fundamental safety of the content. We are extremely proud of this major accomplishment, which many in our industry struggle to achieve. Moreover, we are extremely encouraged by the outlook for the business, considering the fact that we had record-breaking subscriber numbers in both January and February, surpassing previous milestones. We attribute the success of the channel growth to the exceptional leadership team, run by Todd Steinman, President of Toon Media Networks", explained.
On the other hand, Todd Steinman, President of Toon Media Networks, shared his enthusiasm for the channel's impact:"The positive reception from kids and parents has been tremendous. Our subscriber growth has witnessed a notable increase, driven by programming like Rainbow Rangers, attracting larger audiences for its third season, exclusively on Kartoon Channel! Free trials and conversions to paid subscriptions soared by nearly 50% in February compared to the same month last year. As Kartoon Channel! continues to expand, we remain committed to delivering safe, high-quality entertainment to families worldwide, guided by a strategy emphasizing growth, compelling content, and viewer satisfaction. This approach will solidify Kartoon Studios' streaming business as a pivotal growth driver for the Company in the years ahead", stated.
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