With the overnight success of BarbieGirls.com , the long term programming strength of Webkinz and Club Penguin, we see the Internet establishing itself and competing as a true kids’ media distribution platform.

The Internet is distribution; the content/genre is Interactive cartoons.

What’s old is new again. Kids love animation. And while many of these high-traffic branded and brandable children’s destinations use profitable subscriber-based revenue model, like broadcast they are becoming powerful engines for merchandising and licensing activities.

As broadcast demos continue to get older, digital media, Internet and mobile are where the younger and more desirable demographics are. And while no one should predict the demise of children’s programming, (Nickelodeon, Disney Channel, etc.) sticky, interactive, digital content is certain to become the more powerful engine replacing broadcast as the dominant driver of hundreds of millions of dollars in merchandising and licensing revenues.

GS New Media believes that The Saddle Club Virtual World , delivered on SUN Microsystems’ Darkstar platform, will be the first of a new generation of cutting-edge, community-driven, 3D-designed Web and mobile-based destinations for boys and girls that will not only attract an existing global and loyal audience of fans but also become a powerful cross-marketing and promotion tool for old and new Saddle Club- related products and brand extensions.

Citing the 3 million registered users that Barbie Girls, Mattel’s new virtual world for girls, has chalked-up in the last 2 months alone, Duncan Riley of industry blog Techcruch says that one thing is very clear: virtual worlds are going mainstream and the user base is dramatically shifting from being predominantly male to majority female.

Barbie Girls allows users to customize Barbie dolls, dress them up, create virtual homes, adopt pets and chat with other users. The service is free to play with a revenue model focused on the purchase of virtual goods.