From an economic perspective, how does Boomerang justify it's existence?

[Style]

I'm not slamming Boomerang. This isn't what this thread is about.

In fact, I love the channel. I love it showing the old stuff. (And no, I'm not a Batman/Superman Boomerang convertey. I've been watching the channel for three years now.) And for the most part, I'm satisfied that it's still got a good line up, (but I think it could use a little more Yogi Bear. And I miss the laugh-a-lympics, but those will probably be back next year for the 2006 winter olympics. And I think they should bring back Boomeraction as a fuller slot, and restart the all-day friday marathons, instead of relegating it to two hours on saturday that no-one can watch, OH, I'M GETTING OFF TOPIC.)

Anyway, what I'm asking is, how does Boomerang make money? Not very many households have it. They don't show commercials during the shows, (which, from the consumer perspective, I enjoy, but I recognize that they are losing a lot of revenue potential.) And what commercials they DO show are either for other Boomerang programs, or for CN stuff.

Now, because Boomerang just operates as a "re-runs only" channel, that probably means it's a lot cheaper to run than CN. But still, it must cost some money. How does Boomerang justify it's continued existence?

It's something I'm worried about. Because I'd hate to see the day Boomerang just up and "goes away." And if Turner does make good on it's threats to turn it into a "Pre-school channel," I'll probably go into a homicidal rage followed by suicidal depression. (NOTE: That was hyperbole. I am neither homicidal nor suicidal, nor would I be if Boomerang left.)

Anyone know how Boomerang keeps going?

[Jeff Harris]

For starters, the bean counters consider Boomerang to be a brand extension of Cartoon Network, especially since Boom and CN share the same operating facilities, same network management, and the same programming resources. But because Boomerang is an extension that operates as a separate network, people tend to believe that they're completely separate, which they obviously aren't.

Boomerang makes money from one primary source: cable and satellite operators. Boomerang generates funds to Cartoon Network strictly by existing, providing an entertainment outlet for DirecTV and Dish and a few cable operators. Boomerang is now seen in 15 million homes, about less than a fifth of the homes with Cartoon Network, and most of those homes are satellite companies who paid millions to bring the network to homes across the nation.

Like I said, Boomerang is a brand extension of Cartoon Network, and that corporate synergy has its advantages. Because a bulk of prorgamming is library shows, their yearly budget is not tied to program production, but rather show acquisitions, which explains why Boom acquires just a few outside programming like Mr. Magoo, The Pink Panther, and Rocky and Bullwinkle.

Perhaps if Boomerang was ran more like a separate network than just a brand extension of Cartoon Network, a lot of people would take it seriously. "Reruns" is not a bad word. All network lineups are built up on reruns. On every other day, Nickelodeon and Cartoon Network's total day lineups are almost exclusively ALL RERUNS, but people rarely admit that. Since Boomerang admitted that they're all reruns, people tend to ignore it, which is truly sad. But they do make money for the company, though it's not as much as Cartoon Network.

[FredVelDaphFan]

I have a feeling that wha you identified is also the main reason why some providers are reluctant to carry this channel. As for making money, it would seem to me that Boomerang is banking on two things: the "nostalgia factor" and deep pockets of Generation X (both the early and later waves) and the late baby boomers as well as a "Trickle Down" economic theory.

The shows run on this network in a sense become commercials for the products out there that are merchandised. To provide an example: I see "Scooby-Doo" on Boomerang and I t hink, "Oh Man, this is cool! It reminds me of my childhood!" The next time I am at the store, if I see a Scooby-DVD, toy or any other novelty item, I am more likely to buy it. I buy a Scooby DVD, and part of the money would go to WB/HB and eventually a part of it would reach the channel providor who, in a sense, would be getting a "commission" for showing the program that led the consumer to make the purchase. (Well, that's my theory, at least).

Never underestimate the power of older adult purchasers. Kiddie fads, like Yu-Gi-Oh and Pokemon might bring in the bucks for awhile, but let us not forget from whose pockets those bucks are coming from--that's right, Mommy and Daddy's. And Mommy and Daddy remember the cartoons that Boomerang runs.

[JCorey3rd]

it doesn't hurt that Boomerang's programming is freebies. They're not forking out millions for the rights to the Flintstones or the Looney Tunes cartoons. So the subscriber fees aren't devoured like Spike paying for CSI reruns. Kinda the same way the Turner Classic Movies makes its cash without having to run ads.

I like the fact that the shows are barely 21 minutes long.