Welsh language programming will get extra funding to help stimulate the creation of distinctive Welsh language productions from the independent sector.
The money from the UK Government aims to halt the decline of UK produced children's content.
It will be used to reverse the growing trend of airing repeats and facilitate the creation of Welsh language programmes that can repeat the success of with all-time favourites such as Fireman Sam.
5% of the he Contestable Fund will be allocated to Welsh and other indigenous UK languages.
The Secretary of State for Wales, Alun Cairns says it will help grow the sector:
Production levels of new children’s content have declined over the past decade, with public service broadcasters spending roughly 40% less than they did in 2006.
As a result a significant amount of children’s programming on children’s channels now consist of repeats.