In another indication that TV content is moving away from the TV set, AOL's two TV channels geared toward children are attracting three and a half million kids every month, writes Agence France-Presse (via paidContent), reporting from the MIPCOM international TV trade show in Cannes. "Kids don't care where it comes from as long as it is good," according to AOL Kids and Teens senior executive Malcolm Bird.

The picture quality on the web is now acceptable, he said: "It never worked before as streaming technology wasn't there - (now) it's just like watching TV, and it's getting better and better."

Satellite, cable, and terrestrial broadcasters are trying to deal with the threats - and opportunities - posed by the plethora of emerging distribution channels. Meanwhile, internet companies have started to transform themselves into media entities. AOL, for one, has become a content provider by producing its own cartoons.

"We were the first to create original content as opposed to repurposed content," Bird told AFP, referring to Yahoo's Yahooligans children's TV and games channel.

The AOL cartoons, at 11 minutes long - will likely soon enough jump to gaming platforms and mobile phones. "Gaming will be coming soon, and the mobile will definitely be another outlet," Bird said.