Videoage International October 2017

46 October 2017 V I D E O A G E T wo companies in France and one each in Italy and Germany offered a challenging but promising picture of children’s animation in Europe, despite tighter budgets, increased competition andmarket fragmentation. According to Marie Congé of France’s Go-N, tighter budgets means fewer high quality shows. But both Nicolas Atlan of France’s Gaumont and Jo Daris of Germany’s Studio 100 spoke of added competition. “In the last few years there has been a rise in the number of players in the market,” commented Daris. Added Atlan: “In France there are a lot of producers and competition is very high. It’s hard to find talent.” To Micheline Azoury of Italy’s Mondo TV, market fragmentation represents the biggest challenge: “Newways of watching TV are altering the relationship between consumer and advertiser,” she said. Even though competition is increasing, also increasing is the number of territories and outlets to market children’s animation. China is opening up, but as Congé commented, “It can be hard to manage.” Similarly, Atlan said: “China is opening up for co-productions [but] it is still a challenge for sales.” Daris seemed to be more optimistic: “China is opening up gradually for non-Chinese content and there is also an interest in co-production and partnerships with non-Chinese production companies,” and added: “Due to new tax incentives, animation by now takes place more readily in France than in the Far East.” Other territories showing improvements are LATAMand South Korea for Go-N, and Europe for Mondo TV, in particular Germany, Austria and Switzerland. “[But] our biggest breakthrough,” added Azoury, “has been in Latin America with Nickelodeon LatAm, A+Mexico and soon FTA in Chile and Peru.” In terms of trends, comedic shows seemed to be high on everyone’s agenda. “I see a lot of comedy for sure,” commented Gaumont’s Atlan. Echoed Go-N’s Congé: “We’re focusing on comedy, and also action-adventure with comedy contenttoit.”And,addedAtlan,“By talking to broadcasters, comedy is still the main thing. The trend is both adventure and comedy.” “A growing trend is live- action comedy drama for the teen market. In fact many broadcasters are opening slots on their schedules for this genre,” Mondo TV’s Azoury concurred. “Non gender-specific shows and comedy still rule this year.” To Daris, the trend is that “In Europe, writing— in comparison to the U.S. — is getting better and there is a broader variation in formats, like hybrid shows with a mix of live action and animated sequences. [But] generally, it is still important to build and establish brands.” Said Atlan: “The quality of animation all around Europe has really improved.” Ultimately though, all children’s animation companies have to make money andhere’s howStudio 100’s Daris summarized the challenge: “In the last few years there has been a rise in the number of players in the market — especially on the non-linear side, which leads to different and increased license terms that often cover non-linear rights packages without the potential for any increase of the license fee. The revenues generated by SVoD are good, but TV continues to remain the most important medium for establishing high awareness for a property and is thus still crucial especially for our merchandising and licensing partners. The growth of non-linear offers puts traditional linear broadcasters under pressure and that results again in lower license fees.” Comedy Rules, But It’s Still Hard To Laugh All The Way to the Bank Animat ion in Europe Telefi lm, Tax Credi ts, Treat ies, Talent Studio 100’s Jo Daris Mondo TV’s Micheline Azoury not only in Canada, but also in Ireland and the U.K., the business models we have are now very dynamic, with new risk/returnmetrics introduced in rapid succession as the economics and behavior around content consumption evolves.” But is it advantageous to pre-sell versus wait until the show is in the can? According to Hefferon: “Producers often pre-sell as a means to finance/greenlight — this is especially true for smaller independent producers. Waiting until the show is in the can is a risky business, as most top- end broadcasters prefer to be involved in their programs from the very beginning, in order to have maximum input into the show.” For Georgaklis, “It ultimately comes down to whether the show’s financing is in place without the pre-sale. If there is a gap to fill, pre-sales are necessary. Also, it helps to know the show is resonating with buyers and pre-sales ensure the placement of the brand in the market.” As for the main concerns affecting the sector, Hefferon and Georgaklis are in agreement: evolving viewer consumption habits. “Changes in how viewers consume content, along with emerging platforms, and changes in the broadcast of linear content, have had both a positive and negative impact on TV animation,” said Hefferon. “Audience viewing habits have changed. Previously, content was a destination where kids turned on their television screens to enjoy our shows,” Georgaklis said. “Now we must follow them on new platforms that offer opportunities for diverse content and formats. [Plus,] media consolidation is readjusting the television business and new models are evolving.” Hefferon noticed, “The trends are in all of the categories [pre-schoolers, preteens, teens, live action, etc.]. It really comes down to standout properties that have theability toengageaudiences frommore than just a linear perspective.” “Kids today are no longer sitting back and passively viewing content. They are actively involved on mobile devices and form a stronger connection to content they become vested in,” Hefferon said. (Continued from Page 44)