There is perhaps no genre of film or television more global than animation. Success for a film or TV series in one country can translate—often very quickly— into a global hit. And success in these primary markets can feed through into DVD and generate a business from the sale of licenses to toy companies, publishers, and many other manufacturers.

Animation is also a genre which spans the whole range of media creation, from the US-based studio conglomerates led by the Walt Disney Company though to individual artists equipped with little more than a PC and some software. The gap is widening between the studios—which plough huge budgets into their animated movies and feed a growing network of branded networks in the US and around the world with new TV series—and independent producers, who are encountering increasing difficulties in raising funding.

Changes in the television market—which the current worldwide recession has further exacerbated—have destabilised the traditional source of commissions for most independents, who do not have the guaranteed pipeline to market offered by the studios' distribution operations and networks.

Many countries—in particular France and Canada—are reaping the benefits of an ecosystem of financial support programmes, tax breaks and broadcast quotas that serves to bolster their animation sectors. Even these industries are not immune to a weak international market, relying on coproduction, presales and licence fee revenue for a significant part of their funding.

The physical production of animation TV and film is a time-consuming and labour-intensive process involving the creation of thousands of images, backgrounds and objects. Because of the amount of time involved, much of this work is subcontracted to companies in lower wage countries which are able to provide the sheer manpower involved to deliver a project to a tight deadline.

Companies that remain committed to the animation industry are pursuing one of two major business models (or in many cases both): earning a living from fees—the traditional position of most animation producers—or retaining rights in the intellectual property they create and generating royalties and revenue from its exploitation. Many of the largest intellectual property companies now subcontract the physical production of animation to third parties, operating as what could be termed financing producers.


Territories covered
Western Europe

France, Germany, Italy, Spain, UK,

North America

Canada, USA,

Asia-Pacific

Australia, China, India, Japan, South Korea,

Companies mentioned

Walt Disney Co
Nickelodeon
Viacom Inc
Cartoon Network
Time Warner
20th Century Fox
4Kids Entertainment
BKN International
Chorion
Corus Entertainment
Cookie Jar
Coolabi
DHX Media
Dreamworks Animation
DQ Entertainment
Film Roman
HIT Entertainment
Marathon Group
Moonscoop
Rainbow SpA
Toei Animation

Introduction

Trends in production
France
Animation production in hours: Canada, France, Germany, Italy, Spain, UK, US
Animation production in value: Canada, France, Germany, Italy, Spain, UK, US
Production budgets: Canada, France, Germany, Italy, Spain, UK, US
Film animation
Other territories (Japan, South Korea, India and China)
Top 10 animation producers in Canada
Top 10 animation producers in France
Top 10 animation producers in Germany
Top 10 animation producers in Italy
Top 10 animation producers in Spain
Top 10 animation producers in UK
Top 10 animation producers in US

Trends in broadcasting
Development of international programming
Other international players: KidsCo, the BBC and JimJam 27
Adult animation
Trends in broadcasting outside the US

The big three
Walt Disney Co
Cartoon Network
Nickelodeon

Animation production
Value chain of animation production
Pre-production and development
Production
Post-production

Animation support schemes
Canada:
Tax incentives and loans
Broadcast quotas
France:
The CNC and COSIP
Soficas
The 'Credit d'impot' (tax credit) scheme
Support from local and regional governments 45
Broadcast quotas
Germany
Italy
Spain
UK
The MEDIA Programme and Eurimages
Asia
Australia
Private investment and public share offerings

Revenue models for animation
Television
Sales to television
Home entertainment
Toys, publishing and other licences
Film
Television: current market conditions

Impact of internet and new platforms
The internet
Development and production
Distribution
Online ventures by animation producers
Online content
Video-on-demand

Tables and Charts

Annual animation production in France
Annual animation production for TV (hours) in : Canada, France, Germany, Italy, Spain, UK, US
Animation production - TV: Value of animation produced (þm) : Canada, France, Germany, Italy, Spain, UK, US
Animation production - TV: Value of animation produced ($m) : Canada, France, Germany, Italy, Spain, UK, US
Average cost per hour (þ), 2008: Canada, France, Germany, Italy, Spain, UK, US
Animation production - TV: Average cost per hour (þ): Canada, France, Germany, Italy, Spain, UK, US
Animation production - TV: Average cost per hour ($): Canada, France, Germany, Italy, Spain, UK, US
US animation movie production budgets (þm)
US animation movie production budgets ($m)
Animated movie production (by year of production) in France, Germany, Italy, Spain and the UK
Animation movie production per country - estimated total budget value (þm) in France, Germany, Italy, Spain and the UK
Animation movie production per country - estimated total budget value ($m) in France, Germany, Italy, Spain and the UK
Japanese animation industry sales (¥bn)
Japanese animation industry sales ($m)
Canada: animation producers ranked by average annual output 2006-2008 (hours)
Canada: Ranking of top 10 animation producers by share of market 2008
France: animation producers ranked by average annual output 2006-2008 (hours)
France: Ranking of top 10 animation producers by share of market 2008
Germany: animation producers ranked by average annual output 2006-2008 (hours)
Germany: Ranking of top 10 animation producers by share of market 2008
Italy: animation producers ranked by average annual output 2006-2008 (hours)
Italy: Ranking of top 10 animation producers by share of market 2008
Spain: animation producers ranked by average annual output 2006-2008 (hours)
Spain: Ranking of top 10 animation producers by share of market 2008
UK: animation producers ranked by average annual output 2006-2008 (hours)
UK: Ranking of top 10 animation producers by share of market 2008
US: animation producers ranked by average annual output 2006-2008 (hours)
US: Ranking of top 10 animation producers by share of market 2008
US children's blocks
Cartoon Network: annual animation production (hours)
Nickelodeon: annual animation production (hours)
Disney Channels: annual animation production (hours)
Walt Disney Co channel distribution
Turner Broadcasting channel distribution
Nickelodeon channel distribution
Foreign series sold to the USA
France: Investment in animation production (þm)
Five main UK channels: spending on children's programming (£m)
Asian animation co-productions (2005 - 2009)
Licence fees paid for animation
Children's channels launched by generalist broadcasters
International Disney Channels (excluding feed extensions) and Launch Dates
Walt Disney breakdown of revenues from children's 2008
Walt Disney: estimated revenues from children's entertainment ($m)
Cartoon Network: breakdown of revenues from children's 2008
Cartoon Network: estimated revenues from children's entertainment ($m)
Viacom Inc breakdown of revenues from children's 2008
Viacom Inc: estimated revenues from children's entertainment ($m)
US online properties by videos viewed
Examples of current animated properties and who created them
DQ Entertainment: segment results ($m)
DQ Entertainment: Revenues from external customers ($m)
Co-productions with Canada
France: value of animation sales (þm)
Key animation mergers and acquisitions
Support programmes for TV animation
Support programmes for film animation
DHX Media programme investment model
Animation in France: breakdown of funding in value (þm)
German public funding for animation 2008
Eurimages grants for co-production of animated feature films
Cartoon Forum
Animation companies on the stock market
Previously listed animation companies in private ownership
Estimated value of animation (feature film, TV and straight-to-video) in retail and rental home entertainment market (þm)
Broadcasters funding animation
Japan: DVD animation market revenues by genre, (¥bn)
Top US animated home entertainment titles 2008
Top US animated home entertainment titles 2007
Top US animated home entertainment titles 2006
Key financials of Toei Animation (¥bn)
Key financials of 4Kids Entertainment ($m)
Key financials of Millimages (þm)
Key financials of BKN International (þm)
Key financials of HIT Entertainment Ltd (£m)
Key financials of Chorion (£m)
Animation websites: France
Animation websites: Germany
Animation websites: UK
Animation websites: US
Online communities linked to animation properties
Apple iTunes: launch of TV programmes on stores