Canada’s Corus Entertainment to shutter five kids’ channels in cost-cutting drive

Nickelodeon in Canada carries SpongeBob SquarePants

Canada’s Corus Entertainment is set to close five of its linear kids’ channels including Nickelodeon and ABC Spark later this summer as it continues its cost-cutting drive.

The Toronto-based company said it had undertaken a “comprehensive review” before deciding to wind down ABC Spark, Nickelodeon, Disney French, Disney XD and Disney Jr, effective from September 1.

Shows carried by Nickelodeon in Canada include SpongeBob SquarePants and Ranger Rob, while Disney Jr airs Firebuds, Super Kitties, Bluey and Star Wars: Young Jedi Adventures. Disney XD’s line-up includes Beyblade X and Marvel’s Avengers Assemble.

Corus, which is led by CEO John Gossling, will continue to operate the Disney Channel across both its linear and streaming offerings.

The channel closures come as the linear television ecosystem in Canada continues to feel the financial squeeze of cord cutting and declining advertising revenue.

The issues plaguing the broader linear ecosystem are being acutely felt by kids’ channels, which have struggled as their audiences have migrated to YouTube and paid streaming services over the past decade.

“Corus regularly reviews its portfolio of channels to ensure we are meeting the evolving needs of our audiences and distribution partners,” said a Corus spokesperson.

“Following a comprehensive review we have decided to cease distribution of the ABC Spark, Nickelodeon, Disney French (La Chaine Disney), Disney XD and Disney Jr Channels.”

For Corus, the channel closures come as it continues to face major financial challenges that were exacerbated last year by the loss of the licensing and trademark agreements for HGTV and Food Network in Canada.

In the 13 months since, it has slashed costs and significantly downsized its workforce, most recently parting ways with co-CEO Troy Reeb. It currently has more than C$1bn in debt, with no obvious path to repaying it.