Canada Leads Worldwide Animation Market

LONDON: Canada is the world’s largest producer of animation for television, a Screen Digest report reveals, cranking out 382 hours last year worth $265 million and topping the U.S., which produced 330 hours worth $376 million.

Europe’s biggest animation producer is France, with 259 hours produced in 2008, down from a high of 395 hours in 2006. Fourth place in the global rankings is the U.K., followed by Italy, Australia, Germany and Spain.

The Screen Digest also lists the world’s largest producers of television animation, with Nelvana taking the top spot with an average output between 2006 and 2008 of 67 hours, followed by Disney (50), Nickelodeon (47), Cookie Jar (44), TV-Loonland (36) and BKN International (36). Other companies included in the top 20 are DECODE, Bardel, Fox, MoonScoop, Cartoon Network, BRB, Warner Bros. and Rainbow.

"There is perhaps no genre of film or television more global than animation," says senior analyst Tim Westcott. "A popular film or TV series in one country can quickly translate into a global phenomenon. And success in these primary markets can feed through into DVD and licensing and merchandising revenues. On the other hand, it is a fad-driven, highly cyclical business where even companies with a hit property can find investor expectations hard to manage. There is also an increasing disparity between the kind of business in which the Hollywood players are involved and the unstable market for independent producers in Europe and elsewhere. Program budget cuts by broadcasters and the flat DVD market can make animation a tough business."

He concludes: "While the rewards for success can be high, animation is also costly and time-consuming and a return on investment can be slow to arrive. Government-run support schemes offering loans and subsidies, tax breaks or other facilities are giving producers in the countries that offer them an increasingly important edge."