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DHX Media Changes Strategy

DHX Media Changes Strategy
Following a companywide strategic review, DHX Media has signed a multimillion-dollar agency agreement for Peanuts in China and Asia with CAA Global Brand Management Group, a division of Global Brands Group. The company has also decided to restructure its content strategy and management team.

Content Strategy

DHX Media will now focus on its investment in WildBrain, a preschool and children’s entertainment hub, to bolster the development of content for streaming services and broadcasters.

New company objectives include:

  • Developing new content and revitalizing old brands on WildBrain by investing in short-form content and leveraging WildBrain's audience to create global brands;
  • Developing premium children’s content to build franchise brands by prioritizing the development of original long-form series to support major streaming platforms with programming.

Peanuts Worldwide

Recently, DHX Media sold a minority stake in Peanuts to Sony for $178.0 million. The deal with CAA-GBG will see DHX tap into its network in Asia (excluding Japan) to expand the Peanuts brand across the region. The companies will explore opportunities for the brand at retail and online with a focus on key growth markets. According to a company statement, “This multimillion-dollar agreement is expected to contribute to an approximately 35 percent increase in revenue for Peanuts Worldwide from this region over its term.”

Internal Review

As previously announced, DHX Media has reshaped its leadership team with a new chief executive officer, chief financial officer, president and chief commercial officer, among other roles.

“The strategic review marked the end of an important stage in the evolution of DHX Media,” says Michael Donovan, executive chair and chief executive officer, DHX Media. “In the first stage of the company, we grew rapidly by acquisition to assemble a world-leading library of children’s and family content. In the second stage, we began to upgrade the necessary team, systems and processes to monetize that portfolio in the global market. We are well positioned to enter our next stage of growth, focused on what we identified during the strategic review as the two largest opportunities for kids’ and family content: accelerating investment in our WildBrain network to capitalize on the rising popularity of kids’ content on YouTube; better leveraging our IP portfolio to produce premium originals for major streaming services. We believe this refocusing of our strategy will allow us to deliver significant growth while generating free cash flow to pay down debt.”

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