2022 merger of Disney Channel and Nickelodeon/transcript

BIG NEWS! Nickelodeon president Brian Robbins and Disney Channel president and Chief Creative Officer Ayo Davis announce that our two networks' parent companies (Paramount and The Walt Disney Company) have reached an agreement for us to come together to form a new TV network - one that will deliver the LARGEST library of kids' content ANYWHERE! 
== Nickelodeon and Disney Channel Merger: Kids' TV Powerhouse ==
BRIAN ROBBINS - PRESIDENT, NICKELODEON: "Hi, everyone, it's not every day you see the president of Nickelodeon on our airwaves or social media channels. But, when I do appear in the public eye, it means I have big news to share."
AYO DAVIS - PRESIDENT/CHIEF CREATIVE OFFICER, DISNEY CHANNEL: "Actually… WE have big news to share. That’s right. Brian and I are here together to share some important news for consumers and fans around the world." 
ROBBINS: "Today, we're announcing that Paramount and The Walt Disney Company have reached a definitive agreement where Nickelodeon and Disney Channel will come together and form a new, stronger kids’ network. A network that will see changing trends among our audiences, seize opportunities on the changing ways kids consume content, and continue to follow the Nick tradition of pushing the envelope. A network that will create more new original content for our audiences as well as preserve familiar favorites, and the ONLY network with the size and scale to compete in an ever changing kids’ media landscape. So, Ayo and I wanted to talk to you about what all this means." 
DAVIS: "That’s right, Brian. This is very important. Because the media landscape is changing. And what’s been happening to the media and entertainment industries is unprecedented, especially in light of the global COVID-19 pandemic. Look at streaming video. This changed the way we look at entertainment forever, and both of our competing networks are feeling the impact. In fact, recent studies show that more kids today watch programming on streaming services rather than linear TV channels - which includes our respective services Paramount+ and Disney+. Just to put this in perspective, the difference between linear TV and streaming is the difference between black & white TV and color TV."
ROBBINS: "Streaming is definitely the wave of the future for this generation of kids, and only the new Nickelodeon will have the capacity and the library to compete in an ever-changing kids’ television industry. Only Nick and Disney Channel can do this together. We can’t do this separately, and neither Cartoon Network, nor Netflix, nor any of the other new players. Not one company or TV network has the library or the scale to compete on the global children’s TV scene except New Nick. With Disney Channel’s great library of programming, and Nick’s great brands and franchises, together, we will build the largest library of kids’ television shows in the world. This is the kind of library needed to better compete in an ever-changing world dominated by direct-to-consumer distribution, and unleash the next generation of content creators in the United States, just like we saw happen when YouTube dominated the scene nearly two decades ago. YouTube changed the way we look at entertainment when it launched in 2005, and now with the power of Google, it’s one of the primary sources of entertainment for consumers."
DAVIS: "And streaming will mean the combined network can create robust competition in both linear and streaming television. Because in reality, this industry is no longer just three cable channels aimed at kids. Industry lines are blurring and TV and the internet are converging. Disney+, run by my employers at Disney, is now the fastest-growing streaming service in the world. And most of that growth happens to be from established brands from the Disney animated canon, as well as brands such as Pixar and Marvel. Comcast entered the streaming game with Peacock last year at the height of the pandemic, which includes the library of DreamWorks Animation. And even before that, Netflix has invested heavily into television aimed at kids and families. It’s not the big three anymore, it’s the big 7 or 8."
ROBBINS: "That’s right. And when it comes to specialty - and safe - streaming aimed specifically at kids, it’s not even a big 7 or 8, it’s about zero to one, and creating the one kids’ network that can create a streaming service aimed specifically for kids, and safe for them too - which will be spun off from Paramount+. We plan to compete aggressively in this ever changing media landscape. Because this combined network will have the scale and resources to bring real competition by providing the world's only paid streaming service aimed specifically at kids that ensures parents that they're watching some of their favorite programming and staying safe from content they don't want their kids watching in the process. Did you know that even though other paid streaming services - including our respective ones competing with each other - have increased their investment in kids' content, there's still no paid streaming service specifically aimed at kids? With this merger, we will end that and bring real competition with the only streaming service just for kids with a brand parents can trust. And there's no better time - or more important time- than now. 
Since 1979, Nickelodeon has irreverently entertained generations of young viewers and was put on the map in 1991 with the hit creator-driven animated series Rugrats, Doug, and Ren & Stimpy, and we've built on that reputation on being a place that speaks to - and for - kids around the world. 4 years after Nick's launch, Disney Channel burst on the scene - but didn't give us legitimate competition until the success of the hit sitcom Lizzie McGuire in 2001 put them on the map. Now our respective histories will come together as one - with a mission to build a paid streaming service targeted primarily, but not exclusively, to kids. And that's going to create more choice and competition in a time when the market is saturated with streaming options." 
DAVIS: "And when it comes to streaming options, Cartoon Network is pretty much relegated to HBO Max in terms of paid streaming. Not to mention parents are paying too much for too little. And together with Disney Channel's expertise in the "Child Star" system and the new network's combined resources, we can create a real children's entertainment powerhouse and provide real streaming competition. And the new network plans to renew deals with third party producers such as the Canadian television producer Nelvana for the shows they create for us too." 
ROBBINS: "Yep. And that's another reason why this deal makes so much sense. Content! Let me be clear here, the new Nickelodeon - as I said before - will have the largest library of content aimed at children, with a combination of creator-driven animated series and relatable child-oriented sitcoms. Not only that, but one of our classic shows - Doug - will finally be able to have its Disney-produced seasons shown under the Nickelodeon banner, avoiding confusion over who really owns the rights to Doug. I'm sure original creator Jim Jinkins is happy about that."
DAVIS: "On top of that, the combined network will invest over $400 million on developing new kids’ content from both the Nick and Disney Channel libraries. Sadly, though, this will not include any programming based on The Walt Disney Company’s established brands, Star Wars, or the work of Marvel Entertainment and Pixar, which will remain under Disney’s ownership. On a more positive note, it gives animators and artists more creative freedom to bring their vision to life, just as Nickelodeon has always envisioned with their animated projects. Who knows? Maybe Mickey & pals can do a show for the new network as well."
ROBBINS: "This is an exciting day. I can’t wait to bring the ultra-talented Disney Channel and Nickelodeon teams together. If there’s one thing I’ve learned about the Disney Channel team over the years, it’s that they think like kids. They speak for the child in us all. And I have a lot of respect for them. And can you imagine what kind of competitive force these two teams will be together? Cartoon Network and Netflix and the others better watch out!"
DAVIS: "Because we’re coming."
ROBBINS: "And as our iconic sponge would say, We’re Ready."
Category:Mergers and acquisitions