New VIP+ Analysis: Primetime audiences for children’s channels have plummeted since 2014, yet the channels remain lucrative for their owners.
Kids cable TV channels like Nickelodeon, Cartoon Network and Disney Channel remain important brands within their respective company portfolios, generating vast profits from a combination of affiliate fees charged to all pay TV subscribers and advertising revenue. Now, it is fair to note that not all kids' cable viewing comes during primetime, as some children are already in bed.
Kids' primetime viewing has fallen by a significantly greater amount between 2017 and 2022 — by 76% — than all other cable formats: Sports and news networks are down by 19% each, channels focusing on unscripted content are down by 34% overall, and those featuring a mix of movies, scripted and unscripted are down by 38%.
Despite this huge fall in viewing, kids cable networks remain a very lucrative business for their owners. VIP+ estimates that collectively these channels brought in $3.1 billion in affiliate fees in 2022, with the Disney Channel generating $1.1 billion dollars alone . When considering the declines in audience from the benchmark year of 2017, it is not difficult to wonder how the revenues these channels generate from cable subscriptions are so high when audiences are being shed like skin from a snake.
Nickelodeon, for example, could point to windowing new series of shows like “Paw Patrol” on its TV networks before eventually moving to streaming services Paramount+ and Noggin as reasoning for making over a billion dollars a year across its kids networks and as evidence of its commitment to cable TV.
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