AOL wants kids off the box and onto the Internet

AFP , CANNES, FRANCE
Sunday, Oct 23, 2005, Page 9

By Kevin Hsu

Internet AOL's children's TV channels are proving smash hits with youngsters, demonstrating that television is moving away from the box in the family room.

"Kids don't care where it comes from as long as it is good," AOL Kids and Teens senior executive Malcolm Bird told participants at a MIPCOM Junior conference, on the eve of the prestigious MIPCOM international TV trade show, which opened its doors in Cannes last Monday.

His comments, combined with the news that a staggering 3.5 million children watch AOL's two children's channels every month, triggered a stampede amongst the audience eager to get a slice of the AOL action. AOL's monthly audience rate is well above the 1 million viewing figures notched up by kids' cable channels, Bird noted.

The viewing statistics also highlighted why some of the top brains in the TV business were gathering in this glamorous Riviera resort last week to discuss how to deal with the threats -- and opportunities -- posed by the plethora of such new distribution channels as video-on-demand, cellphones and, of course, the Internet.

`Internet companies have started to try and transform themselves into media entities.'

Satellite cable broadcasters, as well as terrestrial ones, have been getting increasingly edgy over the past few years about the future of TV.

But as cellphone operators and Internet service providers start to muscle into the television arena, there is a sense of urgency in the air at this year's MIPCOM.

News the weekend that satellite broadcaster heavyweight BskyB is eying broadband Internet provider Easynet added to the buzz on the busy trading floor and crowded conference halls here.

Internet have started to try and transform themselves into media entities. Yahoo has been hiring executives and journalists from the TV world to report from some of the top news hotspots, while AOL has started to become a content provider by producing its own children's cartoons.

Unlike fellow Internet competitors, AOL makes its own cartoons for both the KOL (kids online) channel for the six-to-eight year old age group and the older teen service, RED. These are proving to be smash hits.

Princess Natasha, AOL's first home-produced show, whose star is a princess and secret agent rolled into one, has just been snapped up by the premier cable/satellite Cartoon Networks. Due to be aired on Cartoon Networks worldwide early next year, Princess Natasha could set the global TV ball rolling for AOL, whose subscribers are mostly based in the US.

"We were the first to create original content as opposed to repurposed content," Bird said, referring to Yahoo's Yahooligans children's TV and games channel.

KOL, which was launched two years ago, "has exploded in popularity," Bird said. AOL is now talking to cable companies around the world about Princess Natasha as well as its other programs, Kung Fu Academy, SKWOOD, a skateboarding action cartoon, and its new pre-school show Pilar's Adventures.

The picture quality on Internet is now acceptable, Bird said.

"[Internet TV] is only just starting to happen. It never worked before as streaming technology wasn't there -- it's just like watching TV and its getting better and better," he said.

The AOL shows also look certain to jump over onto gaming platforms as well as to mobile phones in the not-too-distant future.

At 11 minutes in length, most of the cartoons are ideal for the mobile phone as well as gaming devices.

"Gaming will be coming soon and the mobile will definitely be another outlet," Bird said.

The AOL executive said that parental control was one of the main reasons for the channels' success as well as it being "an exciting, original experience and characters with a multicultural feel."

The online world could also prove to be a great place for fresh TV properties to gain exposure and build up audience ratings, Bird told MIPCOM Junior participants.

The prospect of a huge new launch pad as well as AOL's hot slate of original cartoons had program sellers, creators and buyers queuing up to talk to Bird.

"The interest in AOL properties and in the service in general at this MIPCOM has been unbelievable," AOL exec Micah Green said. "Interest is coming from everywhere. South America, Asia and Europe are all expressing strong interest," he said.