Ccord TeleYummy
DHX Media* (DHX : TSX : $6.12) Net Change: -0.08, % Change: -1.29%, Volume: 118,568 Potential Game Changer? DHX Media announced that it will produce 60 new episodes of Teletubbies for CBeebies, the children's division of BBC in the U.K. Recall, the Teletubbies is an internationally renowned pre-school brand that was launched in 1997, and has aired in over 120 territories in 45 different languages. Canaccord Genuity Media Analyst Aravinda Galappatthige was anticipating the renewal of the show since the acquisition of Ragdoll in September 2013 given the popularity of the Teletubbies franchise and its future merchandise and licensing (M&L) potential. This is the first time a new season of the show will be produced since 2002. The expectation around the new episodes is that they will feature the same characters, but will be visually modernized for today's audience. In terms of the timeline, production is expected to begin this summer and the show is targeted to be broadcast in the fall of 2015. However, there is the possibility of a soft launch on the M&L front during the Christmas season of 2015. Galappatthige notes that longer term, the M&L potential from the revival of the Teletubbies brand represents one of the largest upside scenarios for DHX Media. Considering that Teletubbies generated as much as GBP 46 million in M&L revenues in 2002 at its peak, even a fraction of its historical success could be a game changer for DHX. With expectations around a soft launch of the M&L programme in 2015, we believe the company will be in discussions with various toy manufacturers with respect to a possible M&L agreement, which would potentially be catalytic to the stock.