What’s Next?

After a tumultuous year in the kids’ media business, leading distribution executives share their thoughts on what’s to come.

The mantra for many in the international distribution business last year was “survive till ’25,” on the assumption that 2024’s recalibration would pave the way for better market conditions. The kids’ sector is kicking that can down the road a little bit, well aware that an industry in this much transition needs a lot more time to get back to anything feeling like normal.

In its offer to acquire the Cyber Group Studios assets, United Smile, a toy company, maintained that the “industry needs to reinvent itself and integrate the ability to produce films and series for children, to broadcast them on the platforms on which children spend most of their free time and to develop video games, connected toys and immersive experiences in augmented and virtual reality.” Committing to investing up to €5 million over the next few years to get Cyber Group Studios back on track, United Smile said it wanted to prepare the business for “the upturn expected in 2027.”

The downfall of Cyber Group and fellow French powerhouse TeamTO were among several signs of the industry’s travails in 2024.

“Last year, the kids’ content industry felt the ramifications of market shifts, with declining budgets in general and the lack of streamer investment in kids and animation taking its toll,” explains Delphine Dumont, chief commercial officer at Banijay Kids & Family. “Overall, funding in this genre is an ongoing challenge and one that makes smaller labels particularly vulnerable. Subsequently, we anticipate increased collaborations, co-productions and consolidations in our space.”

Sophie “Kido” Prigent, head of distribution at HARI, expresses a similar perspective, noting, “Some major platforms shifted much of their focus to growing their general entertainment business. The U.S.-based linear channels bought a lot less and the overall impact contributed to an already slow market.”

French outfit Dandelooo, on balance, had a fairly good year, reports Emmanuèle Pétry, producer and head of international, citing three greenlights: Max & Bunny for CANAL+, Billy the Cowboy Hamster season two for France Télévisions and Hold on Gaston! for TF1. “Having said that, international sales revenue did decrease by roughly 10 percent, mainly because of the linear channels’ budget restrictions and because of some screens disappearing,” Pétry adds.

With the big-budget global SVOD commissions now few and far between, IP owners are relying on old-school co-production techniques to get shows funded.

“It felt like 2024 was simply a continuation of the previous few years where production companies were faced with tight funding budgets and decreased levels of content buying,” observes kids’ media consultant Jonathan Abraham. “This just meant that producers had to get creative in pulling together the financing, and it is truly amazing to see how many were able to handle such a shift in the entire content ecosystem. The challenge the industry has faced over the past few years has been met with an incredibly ambitious and relentless group of people.”

Having a track record of being able to cobble shows together is certainly beneficial, Dumont notes. “Since there are fewer opportunities to source singular funding without having to sacrifice our rights position, I anticipate another year of creative financing deals, working with multiple partners across multiple markets. One of our core strengths is that our footprint spans key territories where tax credits and incentives are in play, meaning we can directly access these benefits to get projects off the ground.”

Tax credits continue to help underpin the viability of the French animation ecosystem, Pétry explains. “In France, the virtuous system of original program production quota obligations is increasing, which means that there should be more commissions happening and helping the industry develop and produce more high-end programs. We are thankful to our lobbying experts who actively protect our production model.”

Public broadcasters, too, remain at the heart of the industry, “and their commitment has been consistent despite market disruptions,” Prigent says. “In addition, our initial commercial partners are now the established homes of IPs such as Grizzy & the Lemmings, benefiting from its success and growth. It’s a virtuous circle, as their support helps us sustain and expand the franchise, maintaining momentum in a shifting funding landscape.”

Prigent also stresses the need to find additional revenue streams, namely in L&M. “This requires mass exposure, making YouTube a key platform. And while FAST platforms aren’t acquiring as many kids’ channels as they once did, they represent opportunities for both exposure and revenue in this evolving landscape.”

THE DISCOVERY GAME
As Prigent explains, being on YouTube and FAST and anywhere else kids may be spending time is imperative for solving the discovery conundrum. Amid a sea of options, getting kids to find your show remains a herculean task.

“The way we approach each piece of content is different, but we will continue to pursue a multiplatform approach to our IP wherever possible to reach increasingly disparate audiences,” Dumont says. “This could be through marketing, with smart activations like those we did in 2024 with Totally Spies! and Super Happy Magic Forest on Roblox, or through distribution, retaining the rights to widen the reach of our content through the likes of YouTube and FAST channels.”

Kids are naturally curious, Dandelooo’s Pétry adds, “and caring parents foster this intelligence in their children to make them stronger for their challenging future. This means we think that there is still a space for discovery. Eyeballs love to watch the same programs over and over again, but there is a moment when kids need to grow into other universes to feed their need for change. This demonstrates the importance of choosing the right thumbnail images, which are tiny (but huge) teasers that grab the viewer’s attention and encourage them to click.”

“Linear broadcasters and SVOD platforms remain essential to the discovery of a show,” HARI’s Prigent says. “Their unparalleled expertise in selecting, nurturing and programming content, coupled with their extensive reach into households, ensures that new series connect with broad audiences. Additionally, parents trust these platforms to provide high-quality, age-appropriate content, making them a cornerstone for building lasting audience relationships.”

Prigent continues, “At the same time, kids are increasingly watching their most loved series on connected TVs, which makes FAST channels and YouTube critical in growing both brand exposure and loyalty. It’s always about being where kids and families are. Licensing deals with their favorite retailers and restaurants will not only help discovery but also help build brand affinity. TikTok and Instagram are key for engaging with kids and parents. What’s most important today is delivering across a complementary mix of media. Developing and executing a multiplatform, multiwindow, multidevice and multilocation presence ensures we meet audiences wherever they are and creates deeper and longer-lasting connections.”

Abraham refers to YouTube—kids’ preferred platform across the globe—as “a blessing and a curse to the business. YouTube and social media platforms must be a part of your content plan, and while many have found new revenue streams for their library content, it has taken a large demographic away from the content houses that production companies rely on to help finance their productions. This is especially true for animation and the older kids demo.”

Understanding how best to use YouTube will remain top of mind for IP owners as the kids’ market continues to twist and turn this year.

“As the kids’ business continues to futureproof, we’ll most likely see wider market consolidation,” Banijay Kids & Family’s Dumont predicts. “And, with significant shifts in cable TV and subsequent changes to the landscape, we will continue to diversify our business to counter these headwinds. We benefit hugely from being part of a wider group and are investing in complementary areas like brand licensing and digital innovation so we can leverage our brands, amplify their presence across multiple sectors and platforms and cater to shifting market demand.”

Dumont is also keeping an eye on how AI will reshape the sector and continues to see demand for known IP, “but as always, there are still opportunities to launch original shows.”

FUTURE FORECASTS
At Dandelooo, the team is emphasizing the curation of a stable of “‘must-have’ projects and programs that complement not only our own slate but also fill in the needs of broadcasters,” Pétry says. “We cannot (and don’t want to) compete with the top brands and CGI action-adventure shows. We want to continue to pursue our own route with meaningful programs that drive strong social-emotional topics. Our distribution team only takes on projects that are close to our heart because our sales endeavors need to be sincere, enthusiastic and unique. We also have to widen our horizons because, realistically, we must close more ‘small’ deals to keep the objectives aligned with the previous numbers.”

In line with those widening horizons, Dandelooo established two new divisions last year, one for animated feature films and one for animated shorts for those 15-plus.

HARI has been laying the foundations to drive gains across L&M, YouTube and FAST, Prigent explains, relying on its known brands. “There is a market requirement for big franchise shows such as Grizzy & the Lemmings, so we’ll prioritize their expansion and focus on the sales of previous seasons, providing a high volume of established and popular series. Our core expertise lies in creating original series and growing these into franchises. Grizzy & the Lemmings is a great example, and Mystery Lane is well on its way. We are confident that our future IPs, such as The Weasy Family, will follow a similar path, even if it takes more time in today’s market. Content is king, and we use our established franchises as flagships to drive the development of new properties with equal potential.”

On major trends she sees impacting the sector, Prigent highlights continued demand for social gaming with more platforms emerging. “The industry’s preference toward big franchises will likely mean we see more big consumer product partnerships with key retailers and entertainment outlets. While some things change, some stay the same. Kids will continue to be a most discerning audience, craving quality content that makes them laugh and that they can relate to.”