Why Kids' TV is Scrambling to Stay Afloat

Kids these days aren't like they used to be. Just ask executives at television networks that cater to children.

Over the past year, a sea change in viewing habits has thrown one of the most profitable segments of Hollywood into a chaotic period of transition. Longtime leader Nickelodeon suffered a nearly 30 percent drop in ratings in February, while rivals including Cartoon Network have seen increases. At the same time, upstarts such as The Hub, PBS Kids, Sprout and even Netflix are siphoning off viewers, to say nothing of the online programming and gaming options that compete for the attention of young people. It's enough for savvy executives -- many of whom are heading to the NCTA conference beginning May 21 in Boston -- to begin questioning where the business model for kids television is headed.