Nickelodeon finds success with quirky stars

NEW YORK -- Nickelodeon has won the hearts of children with cartoons like "SpongeBob SquarePants," "Rugrats," and "Dora the Explorer." The cable TV network has also won the wallets of parents, turning out a series of toys and other products linked to its shows.

Now, Nickelodeon is hoping for another big merchandising hit with "The Fairly OddParents," which made its TV debut in 2001 and follows the adventures of a 10-year-old boy and his wacky fairy godparents. The company has signed deals with manufacturers to create about 100 products tied to the program.

But Nickelodeon says merchandising, while very lucrative for the company, is secondary to programming.

"We've become this really large successful business by doing the exact opposite of what most people in the business do. We don't make shows to sell toys," said Jeffrey Dunn, president of Nickelodeon Enterprises, whose parent is media conglomerate Viacom Inc., owner of MTV Networks and Paramount Pictures.

Last year, Nickelodeon had 41 of the top 50 TV programs, on both network and cable, aimed at children ages 2 to 11, according to Nielsen Media Research. "SpongeBob SquarePants," about a sponge who lives at the bottom of the Pacific Ocean, was the No. 1 show with that age group, Nielsen said.

"The Fairly OddParents" was the No. 2-rated show with kids 2 to 11.

'Wholesome edginess'

"There is this wholesome edginess to their characters," said Randall Stone, partner at Lippincott Mercer, a brand consulting company.

Adam Lippman, 31, of Stamford, Conn., is also a fan, as is 3-year old daughter Colette, who also regularly watches "Dora the Explorer." Lippman said he's bought "Dora the Explorer" backpacks and coloring books as well as SpongeBob plush toys for Colette.

That kind of appeal helped Nickelodeon record $2.5 billion in retail merchandise sales last year, a big 19 percent jump from the year-ago period.

Nickelodeon made its first big splash in consumer products with "Rugrats," whose merchandising sales peaked at more than $1 billion in 1999.

Merchandise tied to "Blue's Clues" followed a year later, also generating more than $1 billion. Last year, "Dora The Explorer," which follows the adventures of a 7-year-old Hispanic girl, had $350 million in sales, surpassing the company's goal of $250 million, officials said.

But "SpongeBob SquarePants," which began airing in 1999, has been the company's biggest surprise, generating revenues of $750 million last year and exceeding expectations of $500 million. The show has attracted a wide audience, although the property had a cool reception at first among merchants, who underestimated consumers' emotional connection with a sponge.

Now, there are about 100 companies that supply products under license for "SpongeBob."