Nickelodeon/Nick at Nite

founded: 1979

Contact Information:

headquarters: 1515 broadway
new york, ny 10036 phone: (212)258-6000 fax: (212)258-6354 url: http://www.nick.com/

OVERVIEW

Nickelodeon began as a children's cable television channel in 1979, operating through Viacom's MTV Network. Its most popular shows for children and teenagers includes: Rugrats, Hey Arnold!, and Angry Beavers. The company has grown into a highly successful cable television network and has spawned a number of profitable byproducts, including Nick at Nite, Nick at Nite's TV Land, Nickelodeon Movies, and the merchandising of a variety of products inspired by Nickelodeon programming.

Since the first quarter of 1995, Nickelodeon has been the top rated basic cable network. The cable channel enjoys a larger children's audience than the three major broadcast networks ABC, CBS, and NBC, combined. Nickelodeon programming is seen in nearly 100 million households in more than 70 countries, with dedicated channels in Australia, Germany, Latin America, Scandinavia, and the United Kingdom.

The company's Nick at Nite is nostalgia television at its finest, celebrating the most popular situation comedies of the 1950s, 1960s, 1970s, and 1980s. Its programming includes reruns of the most memorable episodes from some of the best-loved TV comedies of the past, such as I Love Lucy and the Wonder Years. During the day and early evening most of Nickelodeon's programming is directed at children and includes a high level of original programming.

Inspired by the success of its Nick at Nite programming, the company in 1996 launched Nick at Nite's TV Land, a separate cable channel solely devoted to nostalgia television. TV Land broadcasts reruns of some of television history's most successful situation comedies around the clock.

In March 1998 Nickelodeon opened a major new animation studio in Burbank, California. Part of the company's continuing campaign to increase high-quality, creator-driven programming, the new studio is the centerpiece of Nickelodeon's multi-million dollar investment in original animation. Capable of turning out five productions simultaneously, the Burbank studio is the new production home for Hey Arnold! and Angry Beavers.

A couple of months after the opening of the new animation studio, Nickelodeon CEO Herb Scanell announced that Nickelodeon and the Children's Television Workshop (CTW) would jointly launch a new children's educational channel (CTW is the producer of such respected children's programs as Sesame Street and Electric Company.) Scheduled to be launched in January 1999, the new cable channel would be known as Noggin. Speaking of the new network, Scannell said, "The creation of Noggin is a further commitment from Nickelodeon to find new ways of bringing even more quality TV to kids. We hope to make learning cool through Noggin."

On the international front, in early 1997 Viacom expanded Nickelodeon cable programming in Latin American markets via sophisticated digital video compression systems.

COMPANY FINANCES

As a wholly owned subsidiary of Viacom Inc., Nick-elodeon does not report independently on its financial operations.

HISTORY

Nickelodeon first took to the air on April 1, 1979, originally as an offshoot of Viacom's MTV Network. One of the first Nickelodeon hits was Double Dare, a game show most notable for its introduction of Gak—a purple slime that soon became very popular with children and very unpopular with school officials. Several other hit shows were introduced in the early 1990s as part of the Nicktoons series. These shows involved original animated characters, and many were noted for seeking new ways to "gross out" viewers. The Ren and Stimpy Show, for example, starred a hyperactive Chihuahua (Ren Hoek) and a rather dull cat (Stimpson J. Cat), who seemed to delight in seeing how many jokes per show could involve flatulence. Other early Nickelodeon hits that grew steadily more popular over the years included The Adventures of Pete and Pete, the story of two brothers named Pete; and, Rugrats, in which the world is seen from the viewpoint of infants. In early 1997 Rugrats consistently rated among the top cable programs each week and was the basis for a number of successful commercial product spinoffs.

Nickelodeon introduced its Nick at Nite cable programming in 1995 to appeal to baby boomers and fans of old television shows. Old episodes of The Dick Van Dyke Show, The Mary Tyler Moore Show, Bewitched, and The Partridge Family became staple fare on Nick at Nite. In late 1996 Nick at Nite's TV Land was developed as a separate 24-hour channel devoted to television of the last 40 years. Nickelodeon also produced its first feature film, Harriet the Spy, and opened a Los Angeles office to handle expanded film operations.

In the spring of 1998, Nickelodeon announced plans to jointly launch a children's educational channel with the Children's Television Workshop, the highly respected producer of such children's programs as Sesame Street. The new channel, to be called Noggin, will begin operations in early 1999, and is expected to carry reruns of original programming created by Nickelodeon and CTW.

In early 1998, Nickelodeon opened the first new television animation studio to open in the Los Angeles area in 35 years. The state-of-the-art facility is capable of producing five productions simultaneously and will eventually be home to such Nickelodeon success stories as Hey Arnold! and Angry Beavers.

FAST FACTS: About Nickelodeon/Nick at Nite

Ownership: Nickelodeon/Nick at Nite is a wholly owned subsidiary of Viacom Inc., a publicly owned company traded on the American Stock Exchange.

Ticker symbol: VIA

Officers: Herb Scanell, CEO

Chief Competitors: In the arena of cable television programming for children and adults, Nickelodeon faces competition from the following: Walt Disney; ABC; CBS; NBC; PBS; and Fox Network.

STRATEGY

Nickelodeon's success has been based partially on its appeal to the grosser side of its viewers' tastes. It also jumped on the baby boomer marketing bandwagon with its Nick at Nite programming and with a highly profitable merchandise marketing campaign based on its shows and characters. In the mid-1990s it began competing successfully with major companies, such as Disney, in the production and distribution of children's films.

INFLUENCES

Nickelodeon had been extremely successful in its approach to cable programming and, at least initially, to film production. Its quirky and borderline objectionable early children's programming continued its popularity from 1979 into the late 1990s, when Rugrats was consistently rated as one of the most successful cable television programs. As media attention began to focus on the phenomenon of aging baby boomers, Nick at Nite responded by creating and expanding its lineup of nostalgia programming—the most recent being the launching of Nick at Nite's TV Land. Hoping to share the success of Disney film productions in the 1990s, Nickelodeon began to compete aggressively by producing and distributing its own successful children's films in association with Viacom-owned Paramount Pictures.

CURRENT TRENDS

Nickelodeon focuses on a number of markets in addition to its original cable television programming for children. While Rugrats and its kin are incredibly popular among cable audiences, there is also increasing attention to the more mature audiences who watch Nick at Nite. Nick at Nite's TV Land, the company's 24-hour nostalgia cable channel, offers a variety of reruns from the past 40 years of television. The selections range from traditional comedies such as That Girl, Mister Ed, and The Phil Silvers Show to variety shows such as The Ed Sullivan Show and The Sonny and Cher Comedy Hour. There is even airtime devoted to "Retromercials," commercials from the past 40 years of television. An official web page was also created to offer audio and video clips from the programming lineup at Nick at Nite's TV Land. (Available at http://nick-at-nite.com.)

In 1996 and 1997 Nickelodeon expanded its activities in film production and distribution, beginning with its first feature film, Harriet the Spy. Nickelodeon Movies opened a branch office in Los Angeles to oversee the development, production, and marketing of 20 previously-planned films for the family audience. The cornerstone of the films scheduled for production is an animated film based on the cable television hit Rugrats. Nickelodeon also increased efforts on an international level, boosting existing services to Latin America by initiating widespread transmission through digital video compression systems.

PRODUCTS

Nickelodeon's Blue's Clues, a show aimed at the pre-school audience, has been wildly successful, earning lavish praise from educators and parents. To capitalize on this success, the company has forged licensing agreements with several manufacturers who will turn out products inspired by the show.

In addition to Nickelodeon's cable television and film activities, it also has approximately 50 licensing agreements with companies to manufacture products based on its programs and characters. One of the earliest agreements was that with Mattel to produce Gak. Nickelodeon reportedly had a 95-percent brand awareness among children, making the likelihood of profit on its new products high.

A more recent licensing agreement was with Sanford Corporation, a manufacturer of writing instruments. In early 1997 it was announced that Sanford would begin manufacturing and selling Rugrats eraser toppers in the shapes of characters from the show. Sanford also planned to sell Pea Brainer pencils and Slimewriter pens.

Characters from Nickelodeon's phenomenally popular Rugrats can be found in the daily and Sunday comic pages of newspapers around the country, including the Chicago Tribune, New York Daily News, and the Los Angeles Times, marking the company's first foray into comic strip syndication.

CHRONOLOGY: Key Dates for Nickelodeon/Nick at Nite

1979:

Takes air for the first time

1985:

Introduces Nick at Nite cable programming

1996:

Nick at Nite's TV Land is developed; produces first feature film, Harriet the Spy

1997:

Announces the Sanford Corporation will begin manufacturing and selling Rugrats eraser tops

1998:

Announces plans to launch a children's educational channel with the Children's Television Workshop

CORPORATE CITIZENSHIP

Nickelodeon has always prided itself on providing quality programming for children. It hosts an annual televised awards ceremony, The Kids Choice Awards, in which children write or call in their favorites in 16 television, film, music, and sports categories. Nickelodeon claimed that 2.3 million votes were tabulated in 1996. Once again responding to popular trends, in 1997 Nick-elodeon replaced the show's previous hostess, Whitney Houston, with actress and talk show hostess Rosie O'Donnell.

The Big Help is a Nickelodeon program designed to empower children by encouraging them to get involved in their communities through volunteer activities, such as cleaning up parks, volunteering at a senior center, or helping out in an animal shelter. The company's year-round support for the program includes on-the-air public service announcements and free outreach and educational materials in English and Spanish. Also helping to sustain the Big Help program are activities sponsored by 20 local partner organizations.

WHERE IS SHE NOW?

One of the most popular television shows in the 1980s on Nickelodeon was the slime-filled folly You Can't Do That on Television. In 1981 Nickelodeon began airing the Canadian show for kids, and the U.S. audience made it Nick's most popular program among 8-to-12-year olds. The half-hour show offered a unique look at adolescent concerns, while at the same time serving up some humor. Each show addressed a topic, such as divorce or politics, and was presented from a kid's point of view. All episodes also featured the slap-stick antic of pouring slime on participants.

In 1985 a 10-year-old girl named Alanis Morissette became a cast member on the show. With the money she earned acting for Nickelodeon during the 1985-86 season, she was able to release her first song, "Fate Stay with Me," as an independent single in Canada. While many would not recognize Alanis Morissette during her days of green-slime on You Can't Do That on Television, she is now a recording star with the release of her 1995 album "Jagged Little Pill." Thanks to an MTV News special in 1995, a virtually unrecognizable Morissette was slimed once again, and the world was re-introduced to Nickelodeon's You Can't Do That on Television.

GLOBAL PRESENCE

Viacom, Nickelodeon/Nick at Nite's parent company, maintains a strong international presence, with international film distribution; movie theater operations in the United States, Canada, and Europe; a major publishing house, Simon & Schuster; and ownership of the world's leading video and music retailer, Blockbuster Video and Blockbuster Music. Viacom also announced its plans in early 1997 to begin tapping into the Latin American cable audience by beginning digital video compression transmission of Nickelodeon and MTV in Mexico, Central and South America, as well as some Caribbean nations. Programming will be targeted to the 14-and-under audience, a third of the region's total population.

SOURCES OF INFORMATION

Bibliography

"dateline: viacom." business wire, 29 april 1998.

lazarus, george. "nickelodeon is just write for company." chicago tribune, 31 january 1997.

"nick at nite's tv land," march 1998. available at http://www.nickatnitestvland.com/.

"nickelodeon to co-launch new kid's channel." reuters, march 1998.

"nickelodeon movies opens los angeles office and expands development unit." entertainment wire, 25 february 1997. available at http://biz.yahoo.com/.

"rosie to host kids' choice awards." reuters/variety, 25 february 1997. available at http://www.yahoo.com/headlines.

"viacom chooses scientific-atlanta's powervu digital compression to deliver nickelodeon and mtv to latin america." pr newswire, 14 january 1997.

"viacom inc." hoover's online, may 1998. available at http://www.hoovers.com.

For additional industry research:

investigate companies by their standard industrial classification codes, also known as sics. nickelodeon's primary sics are:

4833 television broadcasting stations

4841 cable & other pay tv services

7812 motion picture & video production

7822 motion picture distribution services