Kartoon Studios announced its direct to consumer streaming services, including Kartoon Channel!, 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 per cent of U.S. television households, as its momentum of growth continues.
“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,” said Kartoon Studios chairman and CEO Andy Heyward. “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 Toon Media Networks president Todd Steinman.”
Kartoon Channel!’s app continues to excel in user satisfaction, boasting a leading 4.9 out of 5 stars in the Apple App Store and outperforming other competitors in the industry. This acclaim is a reflection of the channel’s commitment to quality and its diverse library of safe content, including popular titles like Stan Lee’s Superhero Kindergarten, Rainbow Rangers, and Shaq’s Garage, as well as an expansive library of other leading titles.
“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 per cent 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 emphasising 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,” said Todd Steinman.
“I would also like to express my gratitude to Kartoon Channel! Worldwide president Paul Robinson, who has been pivotal in growing the international presence of the channel,” continued Heyward. “His expertise, honed as Disney Channel Worldwide managing director, has been instrumental in expanding our global footprint.”
Kartoon Channel! Worldwide 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. This global expansion has not only broadened its audience but has also reinforced its position as a premier destination for safe children’s content, worldwide.
