The animation industry is facing several challenges. While animation films make up 14.7% of total European cinema admissions, their share of admissions outside their home country is higher at 64%. On television, there has been a shift from public broadcasters to private children's channels, with public channels now representing less than 5% of animation content. There are over 300 children's channels in Europe, mainly from the US. New on-demand services provide an opportunity for animation, but financing remains under pressure. Major industry challenges include investing in and retaining intellectual property rights, improving financing and distribution, and developing skills in managing IP in the new digital landscape.

1. Trends in the animation industry
Gilles Fontaine
Head of Department for Information on Markets and Financing
Animation Day
Brussels, 22 November 2016

2. 1.Film
2.Television
3.Challenges

3. 1.Film

4. • 50 animation films produced each year in Europe
• Main producers: FR, ES, UK, SE
Film production

5. Animation: 14,7% of total admissions in
Europe
Higher share in LT, SI, SK, LV, EE
European Animation films: 20% of total
animation admissions Vs. 33% for all films
=> 3% of total admissions… 230 mEUR
Cinemas

6. However, animation films are more exported
64% of admissions outside the national market
35% outside Europe (26% for all films)… but
boosted by “GB Inc” films
Cinemas

7. 2. Television

8. Figures ???
France: 285 hours
UK: 22 programmes
Italy (RAI): 12 series
Spain: 6-7 series
TV production

9. A switch from main (public) TV channels to
(private) thematic children channel
Main TV channels now represent less than 5% of
the animation/children offer (including repeats)
Main TV channels tend to broadcast less
animation
The (vast majority) of animation on main TV
channels is by Public Broadcasters
Television broadcasts

10. A switch from main (public) TV channels to
(private) thematic children channel
Children’s channels in EU: 301
Public: 18
US Affiliate: 217
US channels broadcast more US content
Television broadcasts

11. Television broadcasts
The footprint of US global players

12. On-demand
A fragmented offer
• By country
• By categories of services
Dedicated SVOD services (SF Kids Play, Pass Gulli, Disney
Channel Avant Premiere) or “corners” (Netflix Kids)
Catch-up TV services of all main children channels
Children oriented websites/apps combining video, games,
merchandising (Nickelodeon)
Transactional VOD (Disneytek)
Niche services

13. 3. Challenges

14. Major broadcasters ressources stagnating
Challenged by multiple children channels with
limited resources to invest in original programming
New on-demand services are potential new outlets
for animation, but only in the medium term, and
not necessarily as pre-financing
New Asian players moving from sub-contracting to
co-production can be an opportunity to expand
beyond the Euroepan market… but also a challenge
to retain IP rights.
Pre-financing under pressure

15. Investing in (and retaining) IP
Building (or reviving) strong brands is more important
than ever, and at an early stage
Broadcasters and producers, otherwise partners, may
increasingly compete for the control of IPs.
Internet brings also new opportunities for producers
and rights holders: distributing directly to the
consumers, growing Brands…

16. Invest in the development of brands
Improve pre-financing and distribution
Recoup the investment in production facilities
Overpass the reluctance of private equity
Develop IP management skills
A rationale for scale ?

17. Is enlarging the audience feasible ?
• Teens and Adults
• Industries
New territories ?

18. Market fragmentation
TVOD and/or SVOD ?
Mainstream or specialized services ?
How to deal with on-demand?

19. THANK YOU!
Full report available on the
European Commission’s website