France Toons In

Andy Fry explores the major issues at play for France’s leading kids’ production and distribution companies.

Over the last 20 years, a combination of Gallic creativity, healthy levels of domestic channel commissioning and government subsidies has turned the French animation sector into a world-class industry. From centers of excellence such as Paris, Lyon, Lille and Angoulême, French producers deliver series for all age groups to their domestic audiences. Many of these then find homes on broadcasters around the globe.

Of note, animation helped boost revenues from French TV exports in 2015, according to the CNC. Animation sales rose by 12.4 percent to €50.6 million ($57 million).

TOON INCENTIVES
In recent times, there has been a concern that the industry might suffer as a result of the growing volume of physical production work being outsourced to Asia. But the French government, via the CNC, has addressed this issue by upgrading its subsidy program so that it rewards shows made at home.

“The animation industry was asking for more money,” says Jérôme Alby, the managing director at Mediatoon Distribution. “So the state gave us the money on the condition that we make more shows in France.”

The revised rules are too new to assess their exact impact, says Alby, but the response in the industry has been upbeat. “It probably means shows will be a little more expensive to make. But it is an opportunity to keep the work closer to home, which means easier communication and better quality control.”

Pierre Sissmann, the chairman and CEO of Cyber Group Studios, also welcomes the new CNC rules. “The more complex our shows become, the more it makes sense to be in France,” he notes. “With a show like Zorro the Chronicles, we were dealing with around 100 characters per episode. So [making it in] France made sense.”

“The new CNC rules do encourage greater quality,” says Morgann Favennec, the deputy managing director of international sales and acquisitions at indie distributor Superights. “Producers have more control over what they are doing, and that is leading to better series. The audience sees that too, so you can’t trick them. You do have to make a good series to compete in this market.”

Marc du Pontavice, the chairman and CEO of Xilam Animation, is a strong supporter of the new system of CNC subsidies—even though his company still has an animation studio in Vietnam.

“The French animation industry is very good at creating jobs and driving exports,” du Pontavice says. “But the government has realized that it needs more support if it is to keep its domestic talent base healthy.”

Du Pontavice demonstrated his confidence in the prospects of the French animation business when he opened a new animation studio in Lyon to help the company double its current production capacity—with a total of 120 new jobs projected to be created in the first three years.

BALANCING THE BUDGET
David Michel, the president and founder of Cottonwood Media and managing director of Federation Kids & Family, says the combination of CNC assistance, the EU’s MEDIA program subsidies, French tax credits and a stable broadcaster landscape “makes France one of the most attractive countries in which to produce and animate shows.” Nevertheless, he describes co-productions as “essential.”

In budgetary terms, the combination of a domestic commission and CNC support means a French producer can quickly secure at least half of its budget on a 26×30-minute animation series, says Mediatoon’s Alby. To this, it is possible to add some regional French subsidies. However, it doesn’t take a mathematician to realize that most French producers still need international support to get their shows made, even with all of the benefits available at home.

“We wouldn’t start production until a show is 100 percent financed,” says Alby. “So we usually look for two additional partners. Belgium is a popular choice for the French because it is close to us culturally and has a similar system. More generally, we would always consider EU partners because that is a way of unlocking MEDIA program subsidies.”

A classic example of the way Mediatoon might put a series together is Yakari, a preschool animation that is based on a classic comic book series. Yakari airs on France 5 and is co-produced with Belgium (Belvision/RTBF) and Germany (ARD/WDR/KiKA). “It has been such a success for all of the partners that it was recently commissioned for third and fourth seasons,” says Alby.

KEY SLOTS
France Télévisions, Canal+ and Lagardère Active—parent company of Gulli, Canal J and TiJi—are all active in commissioning content. In terms of their relative importance, Zodiak Kids CEO Jean-Philippe Randisi says, “France Télévisions accounts for around 70 percent of animation commissioning, which makes it a critical part of the process, since you can only access CNC subsidies if you have a broadcast commission.”

Currently, Zodiak makes LoliRock for France Télévisions and Disney Channel France and it received a commission from France TV earlier this year for Lilybuds, a preschool series about a community of tiny magical gardeners.

Notwithstanding France TV’s dominance, Randisi says Zodiak endeavors to work with all of France’s main kids’ broadcasters. Magiki, for instance, is being produced for Gulli and Le Ranch is an animated equestrian adventure on TF1.

Cyber Group Studios has also sought to develop links with as many French broadcasters as possible. It is executive producing Mini Ninjas, a TF1 Production for TF1’s kids’ programming block TFOU. It also produced Mirette Investigates for TF1 and Canal+ and the adventure series Zorro the Chronicles for France Télévisions.

Sissmann observes that there is one snag with the CNC’s recent intervention in the market. “It’s great that we are encouraging animation production in France. But there is only a limited number of slots on the domestic broadcasters. So for the new rules to really benefit us, we need to be producing shows in France that we can license directly to international channels.”

Internationally targeted shows wouldn’t necessarily be able to access the highest levels of CNC subsidies, but they would enable the French animation business to keep growing.

GLOBAL VIEW
“We have made shows for Disney EMEA, such as Zou and Gilbert & Allie,” Sissmann says. “Coming up are Gigantosaurus and an animated series based on the Tom Sawyer story. This kind of business, along with shows for the SVOD platforms, will enable us to grow.”

Zodiak’s Randisi agrees that French studios should be looking more at the international market—and not just because of the domestic slot shortage. “France Télévisions is a public broadcaster [and] it tends to stay away from overly commercial properties,” Randisi explains. “So the type of content they go after is not necessarily going to be right for the international market. They have a moral obligation to stay true to French culture and ideas, and that isn’t necessarily going to lead to shows that travel.”

There’s an additional factor that pushes French producers toward shows that can work internationally: the behavior of the U.S.-backed thematic channels. For the most part, Disney, Nickelodeon and Cartoon Network don’t commission France-specific shows, preferring to commission, acquire or co-produce titles that can work across multiple territories. So French studios hoping to work with these partners need an international viewpoint.

“France is important to us, but we also want to build links with U.S. networks, SVOD platforms and toy companies,” says Nicolas Atlan, the president of Gaumont Animation. “It’s the same with creatives. We want to work with French talent but also the best animators we can find from the U.S. to Australia and Mexico to China.”

Atlan, who divides his time between Paris and L.A., says his current slate reflects Gaumont Animation’s international focus. Furry Wheels, for example, is for France Télévisions and Disney XD EMEA. Noddy, Toyland Detective, meanwhile, is a reboot of the classic Enid Blyton property airing on France Télévisions that is co-produced with DreamWorks Animation.

A MATTER OF SCALE
Given limits on studios’ production capabilities and broadcaster commissioning budgets, French distributors are eager to fully exploit their catalogs, domestically and abroad.

“Viacom, Disney and Turner don’t produce, but they do acquire second windows on some projects,” Superights’ Favennec says. “And Netflix is investing in back catalog, which is bringing extra money into the market. Hopefully, that will also translate into original commissions.”

Mediatoon is both a producer and a distributor, which means the company is able to board other producers’ projects in the role of international sales agent. “Approximately a third of our catalog is from third-party producers,” says Alby. “A good example would be a preschool show like Folimage’s Miru Miru,” which airs on Canal+ in France and RTBF in Belgium.

The scale of Mediatoon’s catalog also means the company can rely on good cash flow from content licensing, says Alby. Currently, its library consists of 2,300 hours of programming featuring well-known characters such as Little Furry, Tintin and Lucky Luke. In 2014, the company also incorporated the Moonscoop catalog, adding hit titles such as Code Lyoko.

Xilam’s biggest show at present is the animated comedy Oggy and the Cockroaches, which will air exclusively on Gulli and Canal J in 2017. Also coming up is Paprika for France TV. Xilam, too, profits from its archive, du Pontavice says.

“Library revenues have doubled in the last three years and now stand at €6 million ($6.7 million) a year. We have benefited from the rise of local and global digital platforms, which account for around half of that total.”

This cash flow from distribution means two things, says du Pontavice. The first is that the company can fund development on new shows. The second is that it is less reliant on international co-productions to finish off the financing on its shows.

“A lot of indies get stuck waiting for the last 20 percent of their budget,” du Pontavice says. “Sometimes they end up giving away too many rights to secure the budget. Fortunately, we don’t have to do that.”

NEW WAVE
A relatively recent addition to the French animation landscape is Superights, a boutique distribution company founded by Axone Invest and Superprod. Favennec, who exited M6 to take the post at Superights, says the company is not planning on getting into production.

“At present, we represent a lot of French titles because of our strong contacts here, but our goal is to distribute the best shows, wherever they come from and whatever the format and genre. For example, we have already built up good relationships with Irish producers through titles such as Puffin Rock.” Picnic with Cake, meanwhile, is a co-pro between outfits in the Netherlands, Belgium and Spain.

In terms of French content, Superights has found its niche in the market by working with producers who don’t have their own distribution divisions. “A lot of the bigger companies have their own distribution arms,” Favennec says. “But because of the size of the French market, there are many indepen­dent producers in need of a specialist company to handle their international sales.”

Across the board, from producer-distributors with global scale to indie distributors, executives from France’s kids’ sector are facing a seemingly universal challenge: protecting and supporting the domestic industry while also taking advantage of international opportunities. Pulling work back into France makes sense, but only if it doesn’t reduce France’s ability to co-produce or create internationally themed shows.

“The reform is smart—as long as it doesn’t create a wall,” says Xilam’s du Pontavice. “We don’t want to increase domestic finance and risk isolating ourselves.”

With this in mind, the best-placed French companies appear to be those that can produce two kinds of content: domestically targeted, CNC-backed shows that have built most of their budget at home and have strong appeal in Continental Europe; and territory-neutral co-productions that may have CNC funding but are positioned so they have the potential to recoup widely on the international market. For companies that want to be in the latter business, it also helps to have distribution muscle, since this makes it easier to retain rights, rather than see them lost during financing.

CHARTING THE FUTURE
So, what could stop companies from achieving these goals? Zodiak’s Randisi says writing is still a stumbling block. “Design and writing define whether a show will travel or not. The design is good in France, but writing is more of an issue. France still doesn’t have the writing style that works for U.S. networks. And the U.S. networks are the benchmark for what works internationally. It would be great if the French subsidy system could find a way to develop a strong pool of writers.”

Xilam’s du Pontavice says his big concern is if “France misses the digital train. Netflix and YouTube are still quite small in France, but they are important globally.”

For Federation’s Michel, a critical issue is volume. “The market has created an inflow of animation; producers have to compete with a high number of library shows to sell fresh new programming.”

Cyber Group’s Sissmann identifies another challenge: managing growth. In the last year, the company has acquired Paris-based Pictor Media Animation, ramped up development and explored the potential of opening a shop in Shanghai. “I’ve worked in big organizations like Disney, so I know that as you get bigger, you need more people, resources and infrastructure. But with extra investment comes greater risk. Somehow you have to handle that side of the business while protecting the artistic culture of the studio.”

Pictured: Cyber Group’s Mirette Investigates.