ANNECY: While the international animation community celebrated its successes in Annecy, some sobering data was unveiled by trade body Animation Francaise regarding the plight of the sector in France.
Amanda Borghino speaking at MIFA
The French animation industry, a global leader in creativity and innovation, is facing significant challenges. From declining employment figures to shifts in international markets, the sector is navigating turbulent waters. However, with strategic reforms, increased investment and collaborative efforts, there is hope of revitalisation.
So says a report from Animation Francaise (AnimFrance) that was unveiled during a session at the Annecy International Animation Film Festival and Market (MIFA) this week. The report, presented on Wednesday by AnimFrance general delegate Stéphane Le Bars and deputy general delegate Amanda Borghino, began with a list of French toon house that had folded or were in financial difficulties.
The “growing list” of companies that have gone under includes SolidAnim, O2O Studios and Cyber Group Studios, with Andarta Pictures in receivership, while those that have been taken over or sold off include TeamTO, Studio Redfrog, Mikros Animation and Technicolor.
The local animation industry has, furthermore, seen a sharp decline in employment since 2022. In 2024, the number of employees had fallen by 11% compared with 2022, according to Audiens data, with the number of employees under fixed-term contracts seeing a 14% reduction over the same period. The total payroll figure fell by 25% between 2022 and 2024, while the total hours worked fell by 23%, highlighting the severity of the downturn further.
Provisional figures for 2024 don’t suggest any improvement. These show a 10.5% decrease in the workforce compared with 2023, with a 12% drop in fixed-term employees, a 14.4% fall in payroll and a 16.3% reduction in hours worked compared with the same year. These trends underscore the urgent need for intervention to stabilise the sector, according to AnimFrance.
The international market for French animation has also slowed. Export revenues in 2023 were 40% lower than their peak in 2020. While pre-sales rebounded to €40m (US$46m) in 2024, according to CNC data, driven by popular series like Miraculous: Tales of Ladybug & Cat Noir, the overall market remains challenging. Producers are struggling to amortise risks amid declining exports.
Toons such as Miraculous: Tales of Ladybug & Cat Noir helped drive French animation to a peak
The production of TV animation has been particularly impacted. In 2024, only 14 animation projects (12 for TV and two for cinema) received green lights, against an average of 20 projects annually between 2020 and 2023, and a high of 22 (19 in TV and three for cinema) in 2023. Spending on TV and platform projects fell by over 60%, from €120m annually between 2020 and 2022, to just €45m in 2024.
Including cinema, a total animation spend of €190m is forecast for 2024, compared with €200m in 2023 and €270m in 2022. The figures for animation services were also down 14%, from €194m in 2023 to €167m in 2024, with the figure for TV animation services falling 50% to €60m between 2022 and 2024.
Furthermore, AnimFrance said: “Poorly regulated or unregulated players capture 50% of children’s consumption time,” pointing to YouTube’s growing dominance of kids’ viewing time.
Bright spots amidst the clouds
Despite its problems, French animation remains a global powerhouse. In terms of volume of hours broadcast, it ranks second in Italy, Spain and Germany, behind US productions but ahead of local content, according to data from CNC, Ampere Analysis and MediaLogiq. France is also the fifth most represented country on international streaming platforms, highlighting the enduring appeal of its animation.
Furthermore, public broadcaster France Télévisions has increased its investment in animation, committing €32.6m in 2024, including €30m for TV production and €2.7m for cinema. A new five-year agreement (2024–2028) will see annual investments grow to €37m by 2027, with a focus on longform animation. AnimFrance described France Télévisions as “an essential partner” for French animation, accounting for 43% of the total €70m spent of the country’s output in 2023.
Similarly, commercial broadcaster TF1 has raised its animation production quota to 6% of its audiovisual contributions, emphasising independent and original productions. TF1, accounting to 14% of 2023’s French animation spend and producing 650 hours of animation per year, is also upping its animation production quota by 15% from this year.
Also on the positive side, global anime platform Crunchyroll has emerged as a significant partner for French animation. It is investing €6m annually, 85% of it going to works of French origin, 75% to original productions and 70% to independent projects. AnimFrance said Crunchyroll, which is obliged to invest 20% of its French revenues in domestic and European productions under France’s SMAD regulations, spends almost all of its local production quota on animation.
This marks a promising collaboration between French animation and international platforms, AnimFrance says. Disney+, meanwhile, was described as “exemplary” for its commitment to the French animation sector.
The AnimaFrance session gets under way at MIFA
The need for VoD reform
Nevertheless, the AnimFrance report says the 2021 SMAD regulations, agreed between media regulator Arcom and the international streamers in France, was intended to ensure those streamers spent money on local production in all genres but has fallen short for animation. A revised decree is needed, according to AnimFrance, to mandate a minimum of 20% investment in diverse genres, with at least 12% dedicated to animation. Additionally, aligning TV animation rights with cinema investment rules could provide much-needed support.
Regarding the tax incentives to produce animation in France, the report also said the credit for audiovisual production has been capped at €3,000 per minute, limiting the potential for high-quality productions. Raising this ceiling and increasing the tax credit rate from 25% to 30% could provide a financial boost, particularly for young-adult and adult-targeted animation, which face production costs similar to fiction.
While public funding for animation is comparable to fiction in France, the credit tax rate is lower and foreign financing often comes at the expense of domestic employment, according to AnimFrance. Increasing the tax credit rate to 40% for animated features could help localise production and mitigate the down sides of multi-territory coproductions.
“If we want to continue producing high-quality children’s programmes in a sustainable manner, we will need to introduce more soft money,” said Borghino.
The French animation industry is at a crossroads, as revealed by the AnimFrance report. While it faces significant challenges, including declining employment, market slowdowns and funding complexities, there are also opportunities for growth and innovation. Increased investments from key players like France Télévisions and Crunchyroll, regulatory reforms and collaboration, both nationally and internationally, will be crucial in ensuring the industry’s long-term success.
