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

1.Film

2.Television

3.Challenges

1.Film

• 50 animation films produced each year in Europe

• Main producers: FR, ES, UK, SE

Film production

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

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

2. Television

Figures ???

France: 285 hours

UK: 22 programmes

Italy (RAI): 12 series

Spain: 6-7 series

TV production

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

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

Television broadcasts

The footprint of US global players

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

3. Challenges

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

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…

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 ?

Is enlarging the audience feasible ? • Teens and Adults • Industries

New territories ?

Market fragmentation TVOD and/or SVOD ? Mainstream or specialized services ?

How to deal with on-demand?

THANK YOU!

Full report available on the European Commission’s website