Kartoon Studios to Launch “Winnie-The-Pooh” Megabrand on Amazon Prime Video, Alongside Nationwide Retail Program in Partnership with Alliance Entertainment, Leading Distributor of Movies and Music to Major Retailers and Ecommerce

Rhea-AI Summary

Kartoon Studios announces its largest project ever, a 'Winnie-the-Pooh' megabrand, set to launch on Amazon Prime Video and through a nationwide retail program with Alliance Entertainment. The $30 million project, funded by Catalyst Venture Partners, includes an animated holiday movie debuting December 24, 2025, five specials, and a 104-episode series. The series features a unique 'yarn-based' design and modern stories inspired by A.A. Milne's classic books, aiming to build a global brand with family-friendly values.

Alliance Entertainment will distribute 'Winnie-the-Pooh' merchandise nationwide. The project promises significant profitability, leveraging AI for production efficiency. The initiative celebrates the 100th anniversary of Milne's original publication, with the content developed to bring new depth and warmth to the beloved characters.

Positive

• $30 million non-dilutive production financing.
• Partnership with Amazon Prime Video and Alliance Entertainment.
• Launch includes a holiday movie, five specials, and 104-episode series.
• Content celebrates the 100th anniversary of A.A. Milne's original books.
• Leveraging AI for production efficiency and creativity.
• Nationwide retail program to distribute new merchandise.
• Kartoon Studios targets building a long-term global megabrand.

Negative

• Reliance on a classic brand may limit appeal to newer audiences.
• Significant financial risk if the new iteration fails to capture interest.

Insights

Financial Analyst

The $30 million joint venture financing for the “Winnie-The-Pooh” project is significant as it is non-dilutive, meaning that current shareholders will not experience dilution of their shares. This arrangement is favorable for investors because it implies additional funding without increasing the number of shares outstanding, thus preserving shareholder value.

The partnership with Amazon Prime Video suggests a robust distribution plan, leveraging one of the largest streaming platforms globally. This could potentially lead to substantial revenue streams from subscription-based viewership and merchandise sales.

Considering the historical popularity and profitability of the “Winnie-the-Pooh” brand, which has generated $80 billion in retail sales, this project has a strong foundation. However, the market reception to Kartoon Studios’ modern iteration remains a critical factor. Investors should monitor the initial reception of the animated content and merchandise closely.

In the short term, the news of this venture might lead to a positive sentiment among investors, potentially increasing the stock price of Kartoon Studios (NYSE American:TOON). Long-term success will heavily depend on execution and consumer acceptance.

Market Research Analyst

The collaboration with Alliance Entertainment, a major distributor to retailers like Walmart and Target, is a strategic move to ensure wide availability and visibility of the new “Winnie-the-Pooh” merchandise. This extensive retail network can significantly boost product sales, provided the designs and storytelling resonate well with the target audience.

The decision to use a 'yarn-based' design for characters and original stories inspired by A.A. Milne's books aims to differentiate Kartoon Studios' version from Disney's classic portrayal. This unique visual and narrative approach might attract a new generation of fans while retaining the essence of the beloved classic.

Investors should be aware of the competitive landscape, as the market for children’s entertainment is highly saturated. The integration of AI in the production process is a double-edged sword; it promises cost efficiency and innovation but also comes with the challenge of maintaining the creative quality that fans expect.

Overall, the strategic partnerships and innovative design choices provide a solid foundation for potential market success, but continuous monitoring of consumer feedback and market trends will be important for sustained profitability.

$30 Million Joint Venture Funding Provided Via Non-Dilutive Production Financing Through a Subsidiary of Catalyst Venture Partners

Largest Project in Company History, Based Exclusively on A.A. Milne’s Classic Books That Gave Rise to $80 Billion in Retail Sales

 “A Hundred Acre Christmas” Animated Holiday Movie to Premiere on Amazon Prime Video on December 24, 2025, Followed by 5 Holiday Specials and 104 Episode Animated Series Celebrating 100^th Anniversary of A.A. Milne’s Original Publication in London Evening Standard 

  

BEVERLY HILLS, Calif., June 21, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American:TOON) today announced its most ambitious project in the history of the company, Kartoon Studios’ “Winnie-the-Pooh.” Plans include an animated holiday movie, five holiday specials, and a four year/104 episode series, to premiere on Amazon Prime Video, via Kartoon Channel!’s subscription service on the platform. Concurrently, Alliance Entertainment (NASDAQ:AENT), a leading distributor of physical entertainment that supports major nationwide retailers, including Walmart, Target, Amazon and Barnes & Noble, will debut new merchandise through a nationwide retail program, in conjunction with Kartoon Studios rollout of a global consumer products campaign.

Kartoon Studios’ “Winnie-the-Pooh” is based on the designs and stories of one of the most successful brands of all time, A.A. Milne’s “Winnie-the-Pooh,” a property that has generated over $80 billion in sales over the last four decades and is estimated to currently generate $3-$6 billion per year for The Walt Disney Company. The total lifetime revenues exceed those of “Barbie,” “Harry Potter,” “Star Wars,” “Mickey Mouse,” “Peanuts,” “Ninja Turtles,” “Power Rangers,” “Marvel,” and almost every major brand in the world.

“Disney created an iconic and tremendously successful global brand with ‘Winnie-the-Pooh’ that we have all admired so much over many decades. When the property went into the public domain, we knew we could only undertake creating Pooh for a new generation if we could bring a completely new, different and unique look that was contemporary, protectable, and gave voice to the characters and stories created by A.A. Milne, as has never been done,” said Kartoon Studios’ Chairman & CEO Andy Heyward. “We are thrilled to launch with Amazon Prime Video and Alliance Entertainment to deliver unique and exceptional content, as we build out a new iteration of this entertainment brand and ‘Winnie-the-Pooh’-branded consumer products to the global marketplace.”

Pre-production has already begun on the animated holiday movie, set to premiere December 24, 2025, on Amazon Prime Video, through Kartoon Channel!’s $3.99/month subscription distribution agreement with them. Concurrently, the global retail program will kick off with the debut of products featuring an array of special features, distributed through Alliance Entertainment Corporation.

Kartoon Studios’ “Winnie-the-Pooh” animated content is being developed with a unique ‘yarn- based’ design and palette for the characters and backgrounds, along with original modern stories inspired by Milne’s beloved classic books. The beautifully imagined yarn gives the characters a depth and warmth. Additionally, the stories will be told in a ‘Seussian style’ rhyme to provide an enriched dimension to the stories.

    

“In designing Kartoon Studios’ ‘Winnie-The-Pooh,’ we combined the best of both AI and human creativity to arrive at the unique look of the characters and backgrounds that could not have been imaginable prior to the advent of AI in our industry,” commented Heyward.   “Our use of our AI platform will enable us to bring a level of efficiency, speed-to-market, and creativity, to the production heretofore not possible,” said Heyward. “At a time when our world can be confusing for children, Pooh is an oasis of goodness, grounded in family, friendship, kindness, and love. Those are the exact values our version of Pooh will showcase as we focus on building Kartoon Studios’ “Winnie-The-Pooh” into a long-term global megabrand, through which the simple and comforting values A.A. Milne originally imagined, will endure forever.”

    

Heyward added: “We think this is a generational opportunity to capitalize on one of the greatest properties ever created, with a proven track record.   Audiences around the world are demanding healthy, positive, family-friendly stories that will inspire and entertain kids, alongside a new line of products, from toys to books, videos to apparel, and more, that are steeped in these enriching values.”  

The series is being financed through Joint Venture Production financing of $30 million provided by WTP SPV 1, a subsidiary of Catalyst Venture Partners. It is non-dilutive, production financing.

Steven A. Horowitz, Sr. Managing Director  of WTP SPV and its parent company, Catalyst Venture Partners, stated: “We have committed to provide $30 million to the Special Purpose Joint Venture for this exciting new version of A.A. Milne’s ‘Winnie the Pooh’ from Kartoon Studios, which is non-dilutive to any of TOON’s existing stakeholders.  Being able to participate in a timeless and proven children’s classic such as Milne’s ‘Winnie-The-Pooh,’ through the production of original animated content and the licensing of consumer products from those proprietary character designs and stories, is a unique opportunity we are very excited about.  Andy Heyward and the team at Kartoon Studios have a long history of producing hit properties for children. An all-star array of award-winning talent across development, production, marketing, consumer products, and distribution has been assembled to manage the brand launch, and we are excited to be a part of what we are confident will be a hugely profitable and enduring business.”

“Capitalizing on the enormous equity inherent in A.A. Milne’s ‘Winnie-The-Pooh,’ the unique designs and storytelling, as well as the production efficiency by harnessing AI, Kartoon Studios’ new iteration of the timeless brand will have an exceptional array of attributes that we believe can lead to extraordinary profitability for the company,” stated Heyward.

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a global end-to-end creator, producer, distributor, marketer, and licensor of entertainment brands. The Company’s IP portfolio includes original animated content, including the Stan Lee brand, “Stan Lee’s Superhero Kindergarten,” starring Arnold Schwarzenegger, on Kartoon Channel! and Ameba; “Shaq’s Garage,” starring Shaquille O’Neal, on Kartoon Channel!; “Rainbow Rangers” on Kartoon Channel! and Ameba; the Netflix Original, “Llama Llama,” starring Jennifer Garner, and more. In 2022, Kartoon Studios acquired Canada’s WOW! Unlimited Media, and a material financial interest in its subsidiary, Mainframe Studios, which is one of the most successful animation service houses in the world, producing top brands for 3^rd parties , including “Cocomelon,” “Barbie’s Playhouse,” Unicorn Academy,” and “SuperKitties.” Additionally, the company made a strategic investment becoming the largest shareholder in Germany’s Your Family Entertainment AG (FRA:RTV), one of Europe’s leading distributors and broadcasters of high-quality programs for children and families.   Toon Media Networks, the Company’s wholly owned digital distribution network, consists of Kartoon Channel!, Frederator Network, and Ameba. Kartoon Channel! is a globally distributed entertainment platform with near full penetration of the U.S. market. Kartoon Channel! and Ameba are available across multiple platforms, including iOS, Android Mobile, Web, Amazon Prime Video, Apple TV, Amazon Fire, Roku, Pluto TV, Comcast, Cox, Dish, Sling TV, Android TV, Tubi, Xumo, and Samsung and LG Smart TVs. Frederator Network owns and operates one of the largest global animation networks on YouTube, with channels featuring over 2000 exclusive creators and influencers, garnering billions of views annually.

For additional information, please visit www.kartoonstudios.com

Forward-Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; the potential issuance of a significant number of shares, which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

MEDIA CONTACT:

pr@kartoonstudios.com

INVESTOR RELATIONS CONTACT:

ir@kartoonstudios.com

 

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FAQ

When is Kartoon Studios launching the 'Winnie-the-Pooh' holiday movie on Amazon Prime Video?

The 'Winnie-the-Pooh' holiday movie will premiere on Amazon Prime Video on December 24, 2025.

What is the partnership between Kartoon Studios and Alliance Entertainment?

Alliance Entertainment will distribute 'Winnie-the-Pooh' merchandise nationwide in conjunction with Kartoon Studios' content rollout.

How is the $30 million project for 'Winnie-the-Pooh' financed?

The project is financed through non-dilutive production financing provided by a subsidiary of Catalyst Venture Partners.

What unique design features are included in the 'Winnie-the-Pooh' animated series?

The series will feature a unique 'yarn-based' design and modern stories inspired by A.A. Milne's classic books.

How many episodes will the 'Winnie-the-Pooh' series have?

The 'Winnie-the-Pooh' series will consist of 104 episodes.

What values will the new 'Winnie-the-Pooh' series emphasize?

The new series will focus on family, friendship, kindness, and love, reflecting the values of A.A. Milne's original stories.