• by Wayne Friedman , Staff Writer, May 1, 2009

Hasbro's deal with Discovery Kids Network to restart a stronger kids channel might mean the logjam of Nickelodeon, Cartoon Network, and Disney in kids television will end -not just for programmers but for media buyers as well.

According to media buyers, not only will the new network run Hasbro--produced kids shows -- "Transformers," "G.I. Joe," "My Little Pony" and "Trivial Pursuit" -- but it can air independent programming that Cartoon, Nickelodeon, and Disney typically don't consider in their scheduling.

On the surface some might say, do we really need another kids' network?

Absolutely, says Shelly Hirsch, CEO of Beacon Media Group, a veteran media buyer of kids' television. "This move is brilliant," he says. "It is going to reduce the overall cost of doing business."

Media buyers, of course, are also looking for the lowest rates to display their messaging. A successful new, as-yet-unnamed Hasbro/Discovery channel, would add tons of ratings points.

That said, Hasbro and Discovery have their work cut out for them, says Hirsch. The current Discovery Kids Network is only in 60 million homes. National TV advertisers still like their national TV networks to be in 70 million or more homes to command their money.

Advertising-wise, media executives say this is a no-brainer for Hasbro. The big toy company can run advertising on its own network, and lower budgets on the higher priced Cartoon and Nickelodeon.

What about Hasbro toy competitors like Mattel? Hirsch doesn't think Mattel will mind if its shares the wealth with the new Hasbro/Discovery network -- not if it too can lower its overall media costs. He even thinks Mattel-produced TV shows could wind up the new kids network.

A new kids' channel could also serve other big studios that don't have a big kids' cable network platform, such as Fox, which is now out of the kids business on Saturday afternoon.

Fox example, a Fox "Terminator" animated boys show wouldn't see the light of day on a Nick, Cartoon, or Disney. But it could have a wide-open chance of getting consideration on a new 24/7 kids' network.

One of the keys to the channel's success may be with licensing and merchandising, which Hasbro is deeply involved in. For example maybe all Hasbro would need in return from a Fox' "Terminator" is a piece of the merchandising/licensing rights of the show. Those deals can add big marketing exposure for brands and shows.

"You can quote me," says Hirsch. "The next great [kids' programming] idea now has a chance to materialize."