Kids TV producer DHX Media was upbeat Thursday about digital distribution, even as its proprietary production and work-for-hire revenues were down in its latest financial quarter.

Michael Donovan, CEO of the Halifax-based producer, told analysts during a conference call that Netflix, Amazon and other emerging digital platforms looking to build their subscriber bases are doing subscription video-on-demand (SVOD) deals for DHX Media’s expanded programming library after the acquisition of Cookie Jar Entertainment.

“Streaming VOD (SVOD) is offering new ways for consumers to access our large library of family and childrens’ titles,” he said

In results for the three months to Dec. 31, 2012, the producer indicated distribution revenue was up sharply to $9.2 million, against $1.8 million in the same period of 2011.

That gain was offset by proprietary production revenue down to $3.66 million, against a year-earlier $4.9 million, and producer and service fee revenues falling to $5.82 million, compared to $9.84 million in the same period of fiscal 2012.

DHX Media has recently signed an SVOD deal with Amazon’s European digital media subsidiary LOVEFiLM, Tesco-owned blinkbox, Dailymotion and Wananchi.

Despite overall revenue rising 7% to $26.3 million, DHX Media posted Q2 earnings of $287,000, down sharply from a profit of $1.83 million in the second quarter of fiscal 2012.