One hire killed Cartoon Network

Before Cartoon Network existed, cartoons had one job: sell more plastic.

Saturday morning shows were basically 30-minute toy commercials.

The people running them came out of the toy industry, and cartoons were just a way to move more product off the shelves at Toys R Us.

Then Betty Cohen took over Cartoon Network and did something different:

She ran it like a movie studio.

She brought in the best talent and let them build real IP — characters kids actually loved. Adult Swim. The Powerpuff Girls. Shows that pulled people back night after night.

It worked. Cartoon Network became the number one network in America. A genuine cultural touchstone.

Then came the problem.

Betty did such a good job she got promoted. And the network she'd spent years protecting was suddenly left without her.

Corporate brought in a new guy — from Hasbro. You can see where this is going.

So he brought things back to selling toys. The shows stopped being about connecting with kids and went back to being 30-minute infomercials for plastic.

Cartoon Network slid from the top of the culture to essentially canceled by 2024.

Here's the part that gets me: nobody set out to kill it. The guy was doing exactly what he was hired and paid to do: sell plastic, today.

Which quietly gutted the thing in the long term.

Show me the incentives, and I'll show you the outcome. Every time.

That line I just used isn't mine. It comes from Warren Buffett's business partner, Charlie Munger. One of the sharpest investors who ever lived.

I quote him constantly, and this is why: incentives explain almost everything, and most people refuse to look at them.

If you want the aw-shucks business wisdom that actually gets you somewhere in life, spend real time with him. There are a few books floating around.

The Tao of Charlie Munger is a nice, easy on-ramp.

But the one I'd steer you to is Poor Charlie's Almanack. It's hefty, and worth every page.

Catch you next time.

Michael

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