Jetix CEO Paul Taylor has warned that the performance in the channels and online business is being held back by low growth in subscription revenues and a decline in advertising in some of its biggest markets.
Taylor blamed the combination of platform mergers and modest increases in penetration for the squeeze on Disney-owned kids channel, citing the UK’s Sky and current negotiations with an unnamed major European platform. “We are also currently facing sustained pressure in our negotiation to renew a channel distribution agreement in one of our major Western European markets,” said Taylor. “I believe that continuing with our dual strategy of pursuing new distribution technologies and building upon the strong appeal of our content and channels, is the best approach to countering this price pressure.”
Subscriber numbers grew by 2.6 million to 49.4 million households – an increase of 6% in the six-month period. Additional distribution was secured in Spain following the merger of ONO and AUNA and revenues grew strongly in Central and East Europe.
The broadband TV service has been rolled out to a further four countries and is now available in seven markets. In most markets an advertising supported videoclips service is available and in the Netherlands the service has been extended to include full-length episodes.
