Canadian company Corus Entertainment Inc. will end the distribution of five kids’ TV channels this summer, due to a decline in advertising revenue.
The company will wind down distribution of ABC Spark, Nickelodeon, Disney French (La Chaine Disney), Disney XD and Disney Jr. on September 1. The company, led by CEO John Gossling, said that it will continue to distribute The Disney Channel across linear and streaming.
“Corus regularly reviews its portfolio of channels to ensure we are meeting the evolving needs of our audiences and distribution partners,” said a Corus spokesperson, according to C21 Media. “Following a comprehensive review we have decided to cease distribution of the ABC Spark, Nickelodeon, Disney French (La Chaine Disney), Disney XD and Disney Jr Channels.”
News about the company dropping the kids’ channels follows the end of trademark and licensing agreements for Warner Bros. Discovery-owned channels including HGTV Canada and Food Network Canada at the end of last year. That loss led to financial issues that resulted in downsizing in an effort to cut costs.
In its recent Q3 earnings release, Corus reported a 15% drop in television advertising revenue and a 5% drop in subscriber revenue. In that report, the company noted that revenue was “impacted by economic uncertainty and lower demand” and fewer traditional TV subscribers following the sunsetting of the WB-owned channels.