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Get ready for Caillou shampoo; DHX Media signs licensing deals

DHX Media, which recently announced the sale of a fourth season of Caillou to to PBS Kids, will license the hit show across items as diverse as storage containers, sleepwear, plastic vehicles, puzzles, shampoo, bubble bath and soaps. DHX Media (TSX:DHX) today announced it has signed has numerous broadcast and licensing deals for its preschool program, Caillou.

The Halifax-based company, which recently announced the sale of a fourth season of Caillou to to PBS Kids, will license the hit show across items as diverse as storage containers, sleepwear, plastic vehicles, puzzles, shampoo, bubble bath and soaps.

Caillou, which is based on the books by author Christine L’Heureux and illustrator Hélène Desputeaux, first aired on Canada’s Teletoon channel in 1997. The program, which originally aired in French, has since been translated to English and aired worldwide. The show, about a curious four-year old, has been praised for its educational benefit to preschool aged children.

Founded in 2006, DHX Media boasts a library of over 2,525 half-hours of film and television, including Animal Mechanicals, Rastamouse, Angela Anaconda and the hit Yo Gabba Gabba! The company has quietly become a leader in kids TV. DHX has signed more than 1,200 license deals with over 150 children’s networks worldwide, including the BBC, Cartoon Network, PBS, The Disney Channel and Nickelodeon. The company’s fiscal 2012 revenue of $72.7-million was up 31% from the $55.4-million topline the company posted a year prior.

Tribe

Northern Securities analyst Sameet Kanade, who recently initiated coverage of DHX Media with a BUY rating, says the company’s business model mirrors the most successful in the industry, including that of Disney, which is to create a strong library of content that can be refreshed periodically to create recurring revenue. He says this model kicks into high gear when a hit -such as the one DHX had with Yo Gabba Gabba! -produces merchandising and licensing opportunities.

At press time, shares of DHX Media were up 2.7% to $1.90.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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