Animation Market

Two of ADC's first projects to hit the market are Action Dad and YooHoo & Friends. The Company has secured the exclusive rights to market these series to major media markets, as well as promoting and benefiting from any and all products and services based on them. Investors in the Company will share in the rewards that come from a successful television series. The history of the industry demonstrates that such series can generate hundreds of millions, even billions of dollars in revenue from licensing not only the shows themselves but all ancillary sources based on the characters, such as toys, video games, clothing, etc. The Company will share in all of these sources of revenue.

Television is everywhere. Few industries have as urgent and ongoing a need for new creative product as the entertainment business. Television covers hundreds of channels all over the world, and most of them operate 24 hours a day, 365 days a year. Over 90% of the world's 255 countries have television stations. All of them have at least one channel devoted to children's programs, particularly cartoons. There are 426 television stations in the US alone. Children in the US watch about 4 hours of TV every day. That's almost 1,500 hours per year per child. That requires a huge amount of content.

In the United States alone, about 15% of network programming is devoted to children. That amounts to approximately 558,230 hours of shows targeted directly at families with kids. Every year. And that's only in this one country. The worldwide total is far greater.

Some History

The motion picture business too has grown substantially over the years, setting new box-office records with great frequency. Ten years ago, Hollywood released as few as three or four animated movies a year, with Disney the only steady player. In 2007, 16 films were eligible for Academy Awards for feature-length animation, only the second time in the six-year history of the animated Oscar that there were enough movies for a full field of five nominees, rather than the usual three. More and more major feature films are based on animated television series. During that same time period, animated television shows, such as The Simpsons, Scooby Doo, and many others have generated billions in revenue, and continue to do so.

The following are a few examples (from among dozens) of animated series that have been running for a number of years in the period from 1996 to the present, and have proven highly profitable, as they have great appeal to children of all ages (and in many cases, adults, as well). Asterisks indicate that the majority of them are still being aired and earning returns for their producers.

Successful Series

The Simpsons * King Of The Hill * Family Guy * SpongeBob Squarepants * Fantastic Four * Tripping The Rift * The Incredible Hulk Fairly Odd Parents * Atomic Betty * South Park * American Dad! * Rugrats Drawn Together * Lilo & Stitch (* = series still running)

Everybody loves cartoons. They're all over the place, and have become as much a part of our culture as ice cream or our favorite soft drinks. There is one significant difference, though. Once you've had your soda, it's gone. Cartoons, by contrast, can stick around for years, in all sorts of forms. And that small but significant fact is the secret to this business that generates well over $100 billion dollars a year. A cartoon product is created and licensed for years, sold in huge quantities and consumed in one shot.