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UK animation sector facing ‘huge challenges’

Big names highlight Brexit, commissioning risk taking and financing new productions as concerns.

A number of the UK’s leading animation studios have voiced their views about some of the challenges facing the sector in 2017.

While many believe that the sector is healthy overall – with several success stories in 2016 including We’re Going on a Bear Hunt, Ethel and Ernest, Digby Dragon, Clangers and Lily’s Driftwood Bay to name just a few – there are concerns about financing new productions, content overcrowding and, of course, Brexit.

Phil Dobree, ceo at London studio Jellyfish – which is working on Floogals for Zodiak Kids, Dennis and Gnasher: Unleashed for Beano Studios and Bitz and Bob for Fremantle – commented: “We will face huge challenges this year, with Brexit meaning a significant loss to our talent pool – up to 40% of our talent comes from within the EU but outside the UK.

“The fact that there is a significant drop in funding of education and skills in the UK to plug this gap is very concerning. We can’t survive as an industry in the UK without the talent for which we have become world-renowned.”

Oli Hyatt, head of development at Digby Dragon creator Blue Zoo, shares the Brexit fears, while also raising some concerns regarding commissioning.

“With pressure on budgets and slots from all the major broadcasters, 2017 will have to see us fighting harder than ever to find finance for our shows,” he said. “A frustration many of us feel in animation is a lack of risk taking. When budgets get tight, everyone turns to what they know and we think 2017 will be no different; we expect to see more re-commissions and rehashes of old shows and ideas.”

DigbyDragon

Colin Williams, creative director at BAFTA award winning Sixteen South – responsible for Lily’s Driftwood Bay – saw a shift in mood in 2016.

“There was definitely a buoyant feeling about the market at Kidscreen [February], it was tangible. At CMC [Children’s Media Conference, July], however, the main topic of conversation was Brexit and the feeling of optimism had been replaced with very real concern about the short-term health of our industry.”

He also highlighted the issue of content overcrowding in the preschool area.

“Many broadcasters and distributors are saying that market is flooded and they really want fresh 6-9 shows. We’ve currently got two shows in development in that category, plus some new preschool shows as well, because the world will always need great preschool shows.”

Lily

However, while financing new productions remains a challenge, the increase in interest from the likes of Amazon and Netflix has given distribution options a boost.

Phil Chalk, md of Factory – the studio behind the successful Clangers reboot – commented: “The children’s animation business is still very challenging and it remains difficult to finance new productions through the traditional distributor-led, pre-sale model.

“This means we have to attract new investment and prove that we have viable business models to support the development and production of new content.”

This story is based on a feature that originally appeared in the spring 2017 edition of Licensing Source Book. Click here to read the full publication.

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