BUS24 - Press Review

C a r t o o n

B u s i n e s s

1 8 - 2 0 N o v ember 2024

B r u s s e ls

(Belgium)

PRESS ARTICLES

WBD scouring YouTube for shows to join online Cartoon Network, Cartoonito channels

CARTOON BUSINESS: Warner Bros Discovery (WBD)’s Vanessa Brookman has outlined what she is looking for as the media giant experiments with its traditional business model by licensing children’s shows with an existing presence on YouTube.

WBD recently made its ﬁrst digital-only licensing deal for a piece of children’s content by picking up musical series Clawlolo for its global Cartoonito YouTube channel.

From Cyprus-based producer Rymanco, Clawlolo (26×3′) follows the underwater capers of a crab and his aquatic friends and was picked up from Canadian distributor Epic Story Media.

WBD has since acquired Hello Neighbour, the animated series based on the game of the same name from tinyBuild, for its Cartoon Network YouTube channel in markets

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Vanessa Brookman and Julien Borde at Cartoon Business

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From Cyprus-based producer Rymanco, Clawlolo (26×3′) follows the underwater capers of a crab and his aquatic friends and was picked up from Canadian distributor Epic Story Media.

WBD has since acquired Hello Neighbour, the animated series based on the game of the same name from tinyBuild, for its Cartoon Network YouTube channel in markets such as the UK.

Vanessa Brookman, general manager of kids, global streaming and international networks at Cartoon Network owner WBD, discussed the strategy at Cartoon Business in Brussels this week.

Both properties originated on YouTube and Brookman said the non-exclusive deals were experimental, with WBD paying a licensing fee and negotiating revenue share terms on YouTube on a case-by-case basis.

“We have been acquiring a lot of digital-ﬁrst content, which is something new for us. We have Clawlolo, Hello Neighbour and three or four other series we’re putting up and looking at how they perform and seeing what opportunities there are,” said Brookman.

“The ultimate ambition is to see, once we’ve looked at the performance, how we can take it into more places and monetise it more successfully. We have to expand our ecosystem and be much more ﬂexible on rights. We’re not trying to be greedy or prohibit the producer from making money elsewhere. We’ll see how it works out and if the properties have scope for further commercialisation.

“The key thing for us is the creative idea and the ambition. Clawlolo and Hello Neighbour didn’t have huge reach; it’s not like we went and bought Skibidi Toilet, for example. We are there to amplify it and give it a broader reach potentially in other parts of our ecosystem.”

Brookman was asked by C21 if WBD would consider acquiring Skibidi Toilet, the lowbudget animated series that has gone from ﬁve to over 40 million subscriptions on YouTube in the past 18 months.

“It might be a ﬂash in the pan. I’ve been really wanting to use that pun for a long time,” said Brookman, adding: “They’re doing quite well on their own. But to be serious, we’re looking for content that has true longevity.”

Brookman pointed to Cartoon Network shows such as The Amazing World of Gumball as the best-in-class example of the kinds of content it is looking for, with comedy continuing to be a cornerstone of its output.

“Comedy is still at the heart of what we do. I tend not to acquire any content that hasn’t got funny at its heart, because that’s really distinct to who we are,” said Brookman.

The exec, speaking on a panel about changing animation business models alongside Julien Borde, president of Mediawan Kids & Family, added that she is looking for both

“Comedy is still at the heart of

we do. I tend not to acquire any content that hasn’t got funny at its heart, because that’s really distinct to who we are,” said Brookman.

The exec, speaking on a panel about changing animation business models alongside Julien Borde, president of Mediawan Kids & Family, added that she is looking for both shortform and longform shows, as highlighted by the Clawlolo and Hello Neighbour deals.

“When we talk to YouTube now, they’re urging us to do really short and really long. We notice that when we package together narrative episodes they’re really successful and increase engagement,” said Brookman.

“We used to have quite heavy windowing between YouTube, the streaming service and the network, but we’ve realised that ubiquity is really important.”

Seminar-focused Cartoon Business kicked off here in Brussels on Tuesday, with over 200 participants from 23 countries in attendance to discuss the major ﬁnancial and technological challenges facing the international animation industry.

Nico Franks 21-11-2024

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French and German PSBs feel vulnerable as politics casts shadow over budgets

CARTOON BUSINESS: Bosses at the children’s departments of public service broadcasters (PSBs) in France and Germany have revealed the strain they are under due to uncertainty over budgets.

Pierre Siracusa, head of animation and young audiences at France Télévisions (FTV), told delegates at Cartoon Business here in Brussels on Wednesday that the French PSB’s ﬁnances remain up in the air.

“It’s the big question; it’s being discussed in the French parliament at the moment. We don’t know and we can’t say what we don’t know,” said Siracusa on a panel about the future of public service television.

However, Siracusa said he is hopeful his department’s budget will be increased in 2025, as it looks to diversify its offering for young audiences

In 2024, FTV’s animation budget was €30m (US$32.6m) for kids’ series, feature ﬁlms and young-adult animation. At MipJunior last month, Siracusa said the budget should

Pierre Siracusa and Patricia Vasapollo at Cartoon Business

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However, Siracusa said he is hopeful his department’s budget will be increased in 2025, as it looks to diversify its offering for young audiences

In 2024, FTV’s animation budget was €30m (US$32.6m) for kids’ series, feature ﬁlms and young-adult animation. At MipJunior last month, Siracusa said the budget should have been €32m in 2024 but ended up at €30m due to “complicated reasons.”

The animation budget is expected to be €35m in 2025 and €36m in 2026, but it was this week announced that the pubcaster will need to absorb €120m of budget cuts between now and the end of 2025.

It comes as European PSBs ﬁnd themselves at the centre of political turmoil on the continent, with an increasing number of European governments viewing public media as too liberal or as a barrier to their messaging, resulting in efforts to reduce their funding or inﬂuence their output.

France’s far-right National Rally party threatened to privatise the pubcaster had it won a majority in the country’s general election this year and FTV remains under strong political pressure to cut costs.

Meanwhile, Patricia Vasapollo, head of family and ﬁction at Hessischer Rundfunk (HR), part of ARD in Germany, said that although she knows her budget for the next four years, those at her fellow German pubcasters remain up in the air.

“We [ARD] have a four-year term of ﬁnancing, so I know what I have, I just don’t know what my colleagues have. Nobody knows,” said Vasapollo.

Germany currently faces political instability after the collapse of its three-party coalition government led by chancellor Olaf Scholz earlier this month.

Scholz is currently heading a minority government with the SPD and Greens while snap elections have been scheduled for February 2025, with the government unable to pass major legislation effectively until then.

Alongside the Netherlands, Spain and Belgium, Germany is among the countries where right-wing parties have made gains in 2024 by tapping into and enﬂaming antiestablishment sentiment and nationalistic values among voters.

Meanwhile, Slovakia is among a swathe of European countries, which also includes Italy, Finland, Hungary, Croatia, Greece and Sweden, to have swerved to the right in recent years.

Alexander Kmet, development specialist at the recently rebranded Slovak Television & Radio (STVR), said uncertainty also surrounds the Slovakian national broadcaster, which has become more inﬂuenced by the country’s pro-Russian government, led by prime minister Robert Fico.

STVR is currently being led by a temporary general director, Igor Slanina, who is in place until the end of the year. He was initially appointed to take charge from July 1 until September 30 but his tenure was extended.

Alexander Kmet, development specialist at the recently rebranded Slovak Television & Radio (STVR), said uncertainty also surrounds the Slovakian national broadcaster, which has become more inﬂuenced by the country’s pro-Russian government, led by prime minister Robert Fico.

STVR is currently being led by a temporary general director, Igor Slanina, who is in place until the end of the year. He was initially appointed to take charge from July 1 until September 30 but his tenure was extended.

The election of a new director at STVR remains pending, as ﬁve new members of the STVR council needing to be nominated by the country’s parliament before an appointment is made.

C21 understands Slanina has limited powers and is only able to sign off on programming contracts worth up to €200,000, which is leading to a sense of paralysis at the organisation.

Seminar-focused Cartoon Business took place this week, with over 200 participants from 23 countries in attendance to discuss the major ﬁnancial and technological challenges facing the international animation industry.

Franks 21-11-2024

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Cake CEO Ed Galton ‘wrestling’ with potential AI licensing animation deal

Cake in the UK has been approached by companies about licensing its library of animated content to AI companies but has so far declined the offers, according to CEO Ed Galton, amid calls for TV companies to capitalise on opportunities to make money from AI companies.

Speaking at last week’s Cartoon Business event in Brussels, Galton told delegates the London-based kids and family specialist is “wrestling” with whether to do potentially lucrative licensing deals with AI companies.

Such deals could act as a lifeline to an animation industry severely impacted by the downturn in commissions among children’s broadcasters and streamers, but the long-term consequences of such deals with AI companies remain unknown.

Numerous companies have emerged acting as intermediaries between content owners and AI start-ups in need of movies and TV shows on which to train their tools.

Galton said: “It’s certainly something we’re wrestling with and trying to understand. What happens if one of the big AI companies comes to us and says: we want to have AI training, we’ll give you US$10m for your catalogue. Do you say no to them, knowing they’re getting that content already illegally?

“If we officially license it, at least we’re giving something back to the producers. That’s what I’m in the middle of investigating. We have our legal team looking at what to do with that,” said Galton.

It comes after US studio Lionsgate struck a landmark deal with AI ﬁrm Runway earlier this year that will see the latter create and train a new AI model on Lionsgate’s catalogue of ﬁlm and TV titles.

Meanwhile, Bloomberg reported earlier this year that Google, Meta, OpenAI backer Microsoft and the like are willing to pay “tens of millions of dollars” to Hollywood studios for permission to ingest their content.

US-based Calliope Networks, led by former NBCUniversal, Paramount and 20th Century Fox exec Dave Davis, recently told C21 it is offering US$6.25 per minute of HD content as it looks to broker deals between rights-owners and AI companies, with some companies willing to pay a premium for 4K and animated content.

On a panel discussing the distribution of animated content in challenging times, Galton said Cake had been impacted by the drastic reduction in investment in original content by the likes of Cartoon Network, Nickelodeon, Disney and Netﬂix since 2022.

Galton’s comments came after Charlie Fink, a consultant/author at Forbes Media in the US, urged TV companies to take the money and run when it came to licensing content to AI companies while on a panel about AI and animation.

Fink said TV companies could follow The New York Times’ lead and engage in lengthy legal battles with AI companies, or they could strike deals similar to the one done between Lionsgate and Runway.

“It’s going to take 10 years and cost millions of dollars to sustain a lawsuit. The NYT could do it. But, meanwhile, everyone around them is taking [AI companies’] money,”

Fink said TV companies could follow The New York Times’ lead and engage in lengthy legal battles with AI companies, or they could strike deals similar to the one done between Lionsgate and Runway.

“It’s going to take 10 years and cost millions of dollars to sustain a lawsuit. The NYT could do it. But, meanwhile, everyone around them is taking [AI companies’] money,” said Fink. “I would not hold out and get nothing. I would license that stuff as fast as I could and make as much money as you can right now.”

Meanwhile, Galton said the producer and distributor, which shops content including Kiri & Lou, Dennis & Gnasher Unleashed and Angry Birds Summer Madness, is not picking up any content that has been generated using AI tools, having recently bolstered its catalogue by acquiring the assets of Jetpack Distribution.

“I don’t think anything has come across our desk where we have to worry about it yet,” said Galton. “Maybe it’s coming, but so far not yet.”

This comes as more and more animation companies experiment with the use of generative AI tools, with some already incorporating them into their production pipelines and creating series and ﬁlms.

Meanwhile, others are more suspicious of the technology and its potential to put humans out of work, with one campaign originating out of Brussels to set up an anonymous ‘tipline’ for animators to use when confronted with the use of generative AI during the production process.

Sister animation companies La Cabane Productions in France and Thuristar in Belgium were in Annecy earlier this year wearing badges in protest of AI.

WithadditionalreportingfromJonathanWebdale

Nico Franks 25-11-2024

©C21Media

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The stories behind the news.

Cartoon Business searches for next year’s model

Nico Franks 26-11-2024

©C21Media

Cartoon Business, held in Brussels for the ﬁrst time last week, saw execs from all sidesoftheindustryagreethatwhateverbusinessmodelinternationalanimation once had, it needs a new one.

Cartoon Business 2024 delegates network at Autoworld in Brussels

“One of the questions we’re not really allowed to ask in any of my meetings is, ‘What is the business model and how do we monetise this new stuff?,'” Warner Bros

Discovery (WBD)’s Vanessa Brookman told delegates at Cartoon Business in Brussels last week.

This was once the kind of thing said by execs at start-ups, people working at companies disrupting the animation sector, your Rovios or Moonbugs – not US media giants with decades of experience, worldwide brand recognition and a distribution model so lucrative the sales boss once rode into a screenings party at the studio on the back of an elephant.

But that model is no longer ﬁt for purpose. US media giants like WBD, Paramount and even Disney now face the gargantuan task of reclaiming relevance among a

But that model is no longer ﬁt for purpose. US media giants like WBD, Paramount and even Disney now face the gargantuan task of reclaiming relevance among a generation that lives on YouTube, Roblox and streamers like Crunchyroll, which have turned a niche into a rare SVoD success story.

Brookman, who serves as general manager of kids, global streaming and international networks at WBD, doesn’t want to hear about business models, “because then you really won’t take risks, you won’t explore and you won’t experiment, and you’ll be building in obsolescence for your future business. I’m convinced of that.”

The UK-based exec gave an illuminating presentation at last week’s Cartoon Business, where more than 200 participants from 23 countries discussed the major ﬁnancial and technological challenges facing the international animation industry.

The location was Autoworld, Belgium’s national car museum, a mecca for fans of vintage cars made by manufacturers such as Citroën and Peugeot – companies that have adapted to technological changes over the past 100-plus years and stayed in business, alongside others that didn’t.

Brookman’s presentation made a case for the long-term future of WBD’s kids and animation brands, which include Cartoon Network, Cartoonito and Adult Swim, as it uses shortform digital content from third parties to experiment, as highlighted in Brookman’s revamped acquisitions strategy.

WBD has also begun introducing its IP to gaming platform Roblox for the ﬁrst time, with Totally Spies! launching on the brand’s Roblox page, Cartoon Network Game On!, this week.

Meanwhile, WBD is placing big bets on bankable properties, commissioning reboots of hits such as The Amazing World of Gumball and producing them in-house for its subscription streaming and linear channels.

“We haven’t commissioned a new episode [of Gumball] since 2016 and it’s still our biggest global hit,” said Brookman. “Our longform commissioning right now is probably not hugely risk-taking. We’re very dependent on our existing IP and reimagining that. It’s strategic. We want to create content that we know is really working for our streaming business.

“We want to prove to everybody internally that this is what we can do. Once we have that conﬁdence, we will deﬁnitely take more risks on original IP for longform. We’re

Vanessa Brookman in Brussels this week

“We want to prove to everybody internally that this is what we can do. Once we have that conﬁdence, we will deﬁnitely take more risks on original IP for longform. We’re leaving a lot of the risk and experimentation to shortform at the moment.”

This shift in strategy has seen WBD acquire content already on YouTube, such as Clawlolo and Hello Neighbor, to put on its own YouTube channels and see how they perform.

“The ultimate ambition is to see, once we’ve looked at the performance, how we can take it into more places and monetise it more successfully. We have to expand our ecosystem and be much more ﬂexible on rights. We’re not trying to be greedy or prohibit the producer from making money elsewhere. We’ll see how it works out and if the properties have scope for further commercialisation,” said Brookman.

“The key thing for us is the creative idea and the ambition. Clawlolo and Hello Neighbour didn’t have huge reach; it’s not like we went and bought Skibidi Toilet, for example. We are there to amplify it and give it a broader reach potentially in other parts of our ecosystem.”

Swiss-French-Belgian stop-motion animated ﬁlm Savages

C21 asked Brookman if WBD would consider acquiring Skibidi Toilet, the low-budget animated series that has gone from ﬁve to over 40 million subscriptions on YouTube in the past 18 months. “It might be a ﬂash in the pan. I’ve been really wanting to use that pun for a long time!” she said. “They’re doing quite well on their own. But to be serious, we’re looking for content that has true longevity.”

Meanwhile, the discussion around AI and animation continues to evolve at a dizzying pace, with its long-term impact on the business model of animation yet to be determined.

Just when you see a man-made animated work that carries emotional heft, like DreamWorks Animation movie The Wild Robot or the upcoming Swiss-French-Belgian stop-motion ﬁlm Savages, and think the industry is safe from AI-created slop, you come across James Gerde’s LinkedIn post showing the latest image-to-video innovation that replicates the tactility of stop-motion.

Animators working on the €12.1m (US$12.7m)-budget Savages aimed to produce four seconds of animation per day, delegates at Cartoon Business heard. Needless to say, Gerde is unlikely to have taken more than a few days to create his 30-second clip of cute musical ghosts, and nor did he need much money to do it (although his LinkedIn post does reference ‘high computational costs’ as a barrier).

This comes as more and more animation companies experiment with the use of generative AI tools, with some already incorporating them into their production pipelines and creating series and ﬁlms.

Canada’s 9 Story Media Group and its Irish studio Brown Bag Films have published global guidelines for AI use in animated television productions. Brown Bag MD and 9 Story Media chief operating officer Cathal Gaffney was on hand in Brussels to demonstrate 9 Story’s experiments with the tech, with his conclusion being the productivity boost the tools allow will “transform” what the company does.

“Some people are very threatened by it, others are embracing it and playing with it at home,” said Gaffney when asked how his staff are responding to “the genie” being “out of the bottle.”

Among those suspicious of the technology and its potential to put humans out of work is the campaign ABRACA, originating in Belgium, which set up an anonymous ‘tipline’ for animators to use when confronted with the use of generative AI during the production process.

ABRACA representative Lauri Saunders discussed the origins of the campaign on a panel putting AI under the spotlight, before eviscerating vast swathes of the industry for a lack of risk-taking and meddling in the creative process.

Saunders, a director and storyboard artist, said: “Artists need studios and studios need artists. We need to recultivate that connection.

“There’s massive distrust globally between artists and studios, but also between studios, streamers and broadcasters over the past few years. Streaming is not

James Gerde’s AI work

Saunders, a director and storyboard artist, said: “Artists need studios and studios need artists. We need to recultivate that connection.

“There’s massive distrust globally between artists and studios, but also between studios, streamers and broadcasters over the past few years. Streaming is not delivering the money and proﬁt that was promised, so there’s big pressure on studios to deliver certain types of animation: franchises, spin-offs, remakes, prequels.

“We’re seeing a lot of shit on streaming services. We’re overfeeding the audience and starving them at the same time. People don’t want to take risks. It reﬂects on the choices studios make regarding projects and the artists they employ. The creative quality of shows has really reduced. With all the lay-offs and cancellations, the general state of the industry is very, very bad.”

But in the middle of this, best-in-class content is still being produced, with Saunders putting this down to the creative teams on such projects being giving the freedom to take risks.

“Arcane, The Wild Robot – why are they so good? Is it because the creatives had a lot of say and were trusted by the studio?” said Saunders.

On a panel discussing the distribution of animated content in challenging times, Cake CEO Ed Galton said the producer and distributor had been impacted by the drastic reduction in investment in original content by the likes of Cartoon Network, Nickelodeon, Disney and Netﬂix since 2022, having previously done heaps of business with the US.

ABRACA’s Lauri Saunders

In the meantime, numerous companies have emerged offering to act as intermediaries between content owners and AI start-ups in need of movies and TV shows on which to train their tools.

Such deals could act as a lifeline to an animation industry severely impacted by the downturn in commissions among children’s broadcasters and streamers, but the long-term consequences of such deals with AI companies remain unknown.

Galton revealed he has been approached about licensing Cake’s library to AI companies but has so far declined, despite calls for TV companies to capitalise on such opportunities.

Galton told delegates the London-based kids and family specialist is “wrestling” with whether to do potentially lucrative licensing deals with AI companies.

On one occasion, he said, Cake was offered US$100,000 to license its catalogue of 1,600 hours of programming for “educational purposes,” but he had “batted away” the idea.

“If

Galton told delegates the London-based kids and family specialist is “wrestling” with whether to do potentially lucrative licensing deals with AI companies.

On one occasion, he said, Cake was offered US$100,000 to license its catalogue of 1,600 hours of programming for “educational purposes,” but he had “batted away” the idea.

However, Galton added he may be open to more valuable deals with the AI companies themselves, and he believes more studios will engage with these ﬁrms in future.

“It’s certainly something we’re wrestling with and trying to understand. What happens if one of the big AI companies comes to us and says, ‘We want to have AI training, we’ll give you US$10m for your catalogue.’ Do you say no to them, knowing they’re getting that content already illegally?” Galton said.

“If we officially license it, at least we’re giving something back to the producers. That’s what I’m in the middle of investigating. We have our legal team looking at what to do with that.”

Cake CEO Ed Galton, pictured with mic

His comments come after US studio Lionsgate struck a landmark deal with AI ﬁrm Runway earlier this year that will see the latter create and train a new AI model on Lionsgate’s catalogue of ﬁlm and TV titles.

Meanwhile, Bloomberg reported Google, Meta, OpenAI backer Microsoft and the like are willing to pay “tens of millions of dollars” to Hollywood studios for permission to ingest their content.

US-based Calliope Networks, led by former NBCUniversal, Paramount and 20th Century Fox exec Dave Davis, recently told C21 it is offering US$6.25 per minute of HD content as it looks to broker deals between rights owners and AI companies, with some of the latter willing to pay a premium for 4K and animated content.

In the earlier AI and animation panel, Charlie Fink, a consultant and author at Forbes Media in the US, urged TV companies to take the money and run when it comes to licensing content to AI companies.

Cake CEO Ed Galton, pictured with mic

Fink said TV companies could follow The New York Times’ lead and engage in lengthy legal battles with AI companies, or they could strike deals similar to the one done between Lionsgate and Runway.

His comments come after US studio Lionsgate struck a landmark deal with AI ﬁrm Runway earlier this year that will see the latter create and train a new AI model on Lionsgate’s catalogue of ﬁlm and TV titles.

Meanwhile, Bloomberg reported Google, Meta, OpenAI backer Microsoft and the like are willing to pay “tens of millions of dollars” to Hollywood studios for permission to ingest their content.

“It’s going to take 10 years and cost millions of dollars to sustain a lawsuit. The NYT could do it. But, meanwhile, everyone around them is taking [AI companies’] money,” said Fink. “I would not hold out and get nothing. I would license that stuff as fast as I could and make as much money as you can right now.”

US-based Calliope Networks, led by former NBCUniversal, Paramount and 20th Century Fox exec Dave Davis, recently told C21 it is offering US$6.25 per minute of HD content as it looks to broker deals between rights owners and AI companies, with some of the latter willing to pay a premium for 4K and animated content.

Delgates at Cartoon Business last week

Meanwhile, Galton said the producer and distributor, which shops content including Kiri & Lou, Dennis & Gnasher Unleashed and Angry Birds Summer Madness, is not picking up any content that has been generated using AI tools, having recently bolstered its catalogue by acquiring the assets of Jetpack Distribution.

“I don’t think anything has come across our desk where we have to worry about it yet,” said Galton. “Maybe it’s coming, but so far not yet.”

Before Cartoon Business, a handful of delegates had been stateside, attending AFM in Las Vegas and having meetings in LA, where they told of newly launched driverless taxis, as Waymo, the self-driving car division of YouTube owner Alphabet, expands its ﬂeet.

The era of automation is ramping up. In Brussels, the influence of YouTube, Roblox and AI on shaping the animation industry’s next business model was undeniable. However, the specifics of this new model – or potential models – remain unclear. Nevertheless, the animation business will find a way.

In the words of the ever-optimistic Julien Borde, president of Mediawan Kids and Family: “We are never going to go back to a situation where you will go to a broadcaster, get what you need and go into production. It was never really like that in animation at a certain scale of project. One of our strengths is that the minds in the room are used to playing puzzles and ﬁnding solutions.”

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Registration for Cartoon Business is open! Join us in the heart of Europe for 3 days dedicated to the business models of the animation industry, with around 12 keynotes and 30 speakers. A unique opportunity to gain invaluable insights and guidance! See you from 18 to 20 November 2024 in Brussels!