Is Viacom Cannibalizing Nick Jr. And ‘SpongeBob’ To Help Nickelodeon?

The company’s leading Wall Street critic, Bernstein Research’s Todd Juenger, raises the provocative idea this morning in a report that questions whether Viacom‘s stock — now hovering around its all-time high — can continue to rise. The share price has appreciated 55.4% so far in 2013 as investors grew confident that the company had reversed a startling decline in Nickelodeon’s ratings that began to show in late 2011. CEO Philippe Dauman says the turnaround largely reflects the success of new programs including Teenage Mutant Ninja Turtles. But Juenger says this morning that the ratings gains — and improvements in ad sales — are about to slow. Nickelodeon benefited in part because it began to target pre-Kindergarten viewers from 8:30 AM-2 PM — loading up on programs such as Dora The Explorer, Umizoomi, and Bubble Guppies — while Nick Jr focused on franchises “with arguably less audience appeal.” As a result “Nick Jr. lost about 250-300k average daily viewers [while] Nickelodeon gained about 100k.” Meanwhile, Nickelodeon squeezed SpongeBob SquarePants which now accounts for 45% of the channel’s programming hours, up from 25% in January 2012. “We know of no other network that relies so heavily on one single franchise,” Juenger says. It’s “undeniably risky to be so dependent on one franchise, especially (more…)

This article was printed from https://deadline.com/2013/10/is-viacom-cannibalizing-nick-jr-and-spongebob-to-save-nickelodeon-605895/