Kartoon Studios’ Kartoon Channel! Streaming Business Hits Profitability Milestone

Record Breaking Subscriber Numbers in both January and February
Surpassing Previous All-Time Highs

Free Trials and Conversions to Paid Subscriptions Soared by Nearly 50% in February Compared to the Same Month Last Year

BEVERLY HILLS, Calif., April 11, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) today announced its direct to consumer streaming services, including Kartoon Channel!, achieved profitability through the first two months of 2024, driven by sustained subscriber growth and streamlined operations. As recently reported, Kartoon Channel! achieved record revenue and EBITDA breakeven in the fourth quarter of 2023. Available on a wide array of platforms, Kartoon Channel! has achieved remarkable domestic penetration, reaching nearly 100% of U.S. television households, as its momentum of growth continues.

“It has been less than four years since Kartoon Channel!’s launch, and in that time, it has rapidly ascended to become a premier destination in children’s entertainment with a vast selection of family-friendly content. The transition to profitability in that short time is a testament to Kartoon Studios' strategic focus on growing our subscriber base, reducing customer acquisition costs, maintaining a lean operating infrastructure, and the fundamental safety of the content. We are extremely proud of this major accomplishment, which many in our industry struggle to achieve. Moreover, we are extremely encouraged by the outlook for the business, considering the fact that we had record-breaking subscriber numbers in both January and February, surpassing previous milestones. We attribute the success of the channel growth to the exceptional leadership team, run by Todd Steinman, President of Toon Media Networks,” stated Andy Heyward, Chairman and CEO of Kartoon Studios.

Kartoon Channel!’s app continues to excel in user satisfaction, boasting a leading 4.9 out of 5 stars in the Apple App Store and outperforming other competitors in the industry.

This acclaim is a reflection of the channel's commitment to quality and its diverse library of safe content, including popular titles like Stan Lee’s Superhero Kindergarten, Rainbow Rangers, and Shaq’s Garage, as well as an expansive library of other leading titles.

Todd Steinman shared his enthusiasm for the channel's impact, stating, "The positive reception from kids and parents has been tremendous. Our subscriber growth has witnessed a notable increase, driven by programming like Rainbow Rangers attracting larger audiences for its third season, exclusively on Kartoon Channel! Free trials and conversions to paid subscriptions soared by nearly 50% in February compared to the same month last year. As Kartoon Channel! continues to expand, we remain committed to delivering safe, high-quality entertainment to families worldwide, guided by a strategy emphasizing growth, compelling content, and viewer satisfaction. This approach will solidify Kartoon Studios' streaming business as a pivotal growth driver for the Company in the years ahead.