Magic Light Pictures’ Marc Ollington and Muriel Thomas describe how the animation house has built a business creating specials based on Julia Donaldson and Axel Scheffler’s beloved picture books, along with an ancillary licensing programme.
Magic Light Pictures has carved out a unique position in the global animation business. Co-founded by Michael Rose and Martin Pope, the award-winning studio has built its reputation around the production of sumptuous high-end specials based on Julia Donaldson and Axel Scheffler’s much-loved picture books.
The relationship with Donaldson and Scheffler goes back to 2009 when Magic Light produced a heart-warming version of bestseller The Gruffalo. Despite all the upheaval in the kids and family market since then, Magic Light’s steady stream of specials continue to attract huge audiences both at launch and later via on-demand platforms.


Magic Light co-MD Marc Ollington says Tiddler, the 12th special, has continued the company’s run of success. The story of a little fish with a big imagination, Tiddler was “the ninth most watched show on Christmas Day 2024, securing an audience share of 45%, which is tremendous. Once the consolidated viewing figures are in, we expect it to be similar to last year’s special, International Emmy-winning Tabby McTat (8.6 million),” he says.

Explaining the enduring appeal of the company’s animated specials, Ollington says it’s partly about the creative care and attention given to every film. “But it’s also because the holiday season is great for family co-viewing. Even though these shows are ostensibly aimed at a young audience, they appeal to every generation,” he adds.
Indeed, the entire canon of Donaldson/Scheffler specials continues to draw impressive audiences for the BBC, says Ollington. “Across Christmas, the BBC scheduled the other specials as well, titles like The Gruffalo, Zog and Stick Man. They all attracted one to two million viewers, which is a fantastic testament to their evergreen quality.”
Distribution director Muriel Thomas says: “We sell Magic Light’s animated specials all over the world, with the UK and Europe being the strongest markets. We also distribute through multiple international digital and theatrical channels to maximise audience reach and revenues.”

While main partners such as the BBC and ZDF have remained committed to supporting the specials, Thomas and Ollington acknowledge that funding has become tougher – not least because of increased production costs. “The financing has got tricker over time,” says Thomas. “But because there is still so much distribution activity around the catalogue of specials, we are able to keep investing in new content.”
In parallel, Magic Light has also built a hugely successful ancillary licensing programme for The Gruffalo & Friends that helps support the expansion of the Donaldson/Scheffler universe. “Having a new special every year helps sustain audience interest in the portfolio,” says Ollington, “and this feeds into our licensing activity. Keep in mind that, although the specials are launched around Christmas, they continue to generate millions of views on platforms like BBC iPlayer all year round, which is great for our licensing partners.”

Interest in The Gruffalo & Friends shows no sign of slowing down and there is significant L&M activity planned for this spring, including in-store activations. “We’ve nurtured the brand very carefully and now have 80 licensees and hundreds of products,” says Ollington. “We want The Gruffalo to be around for many years.”
Other brands are also performing well in L&M. Accident-prone dragon Zog is one example, while Tiddler has also racked up several categories, including children’s nightwear and apparel. Tiddler plush toys from Aurora are also coming down the line. “The UK is strong, but the aspiration is to go international,” says Ollington. “We’re doing a lot more in Germany, which reflects our ZDF relationship and Axel’s heritage.”
The good news for Magic Light is that the specials aren’t stopping any time soon. The next Donaldson/Scheffer book to get the Magic Light treatment has already been selected and will be unveiled in a few months. “The reveal is a key moment for us,” says Ollington, “so we will build some marketing activity around it.”
In terms of that selection process, Thomas says the key challenge is identifying which books can be transformed from a 10-minute read into a 26-minute animated special. “How can the story be developed and expanded? Does it have a twist or moral?”

Some attention is paid to data such as book sales, but Thomas says there is also a lot of creative alchemy. “Michael Rose and Martin Pope [Magic Light founders and CEOs] have been immersed in this world for so long, that I think it is more about gut feelings than some complicated algorithm,” she says.
Of course, over-reliance on one line of business is a risk in the rapidly evolving kids market. So Magic Light has begun exploring new avenues, says Thomas. “I don’t see us ever moving away from the specials, but we now also have a preschool series called Pip and Posy, which is inspired by books by Axel Scheffler.”
Now up to two seasons, Pip and Posy celebrates the friendship of a mouse and a rabbit whose lives revolve around a world of play. It features on Channel 5’s Milkshake! and Sky Kids and has also built up a head of steam in licensing, says Thomas. There is also a spin-off series, exclusive to Sky Kids, called Pip and Posy Let’s Learn.
There are no prospects of The Gruffalo becoming a series, although there have been several enquiries, says Thomas. However, one Donaldson/Scheffler character that is about to get a series is Zog, who has previously featured in two specials. Thomas says it is too early to provide details about talent and production style, but the company is producing 52×11’ for the BBC and ZDF. She expects there will be more to add by Mipcom.

This combination of specials and series makes for a packed production schedule, but Ollington says the company also finds time for the occasional “maverick” project. The most notable is a critically acclaimed adaptation of Margery Williams’ The Velveteen Rabbit. Produced as a Christmas special for Apple TV+, the 40-minute film is a clever combination of live-action and animation, and is nominated for six Children and Family Emmys.
For Ollington, the project encapsulates two of the key reasons why Magic Light has weathered the storm in the kids industry. “Magic Light stays completely focused on creative excellence. We also prioritise known IP. I think this business is even tougher if you’re making an animated series from scratch, because the decision-makers are taking fewer risks,” he says.
That said, Thomas stresses that the company also aims to stay informed and experimental: “We keep an eye on what’s going on and we try new things. Because we are a small company, we can be agile. We can jump on opportunities very quickly.”

As for trends engulfing the business, one is the increasing impact of YouTube on the kids business. Magic Light has a YouTube channel called Gruffalo World which pulls together content from all of the company’s shows. It has 1.8 million subs, but Ollington says its primary value is still as a marketing platform rather than a revenue generator.
Then, of course, there is the rapid expansion of AI in the kids industry. Ollington is excited about the potential but warns that the industry needs to guard against an erosion in creativity and quality.
Thomas anticipates challenges around IP copyright but is optimistic about AI’s impact on distribution. “It won’t replace the personal relationships that the business is built upon, but it could simplify processes. Whatever happens, we need to learn quickly because the AI revolution is coming to animation,” she says.

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Muriel Thomas, international distribution director at The Gruffalo prodco Magic Light Pictures, discusses the evolving market for holiday specials, the London-based company’s YouTube strategy and its continuing move into TV series production.
Have you observed any changes in audience demand for holiday content?
We have seen some shifts over the past few years. Streaming has become a strong driver for repeat viewing, which is perfect for our specials. Families increasingly value the flexibility to watch again and again, on demand and across different devices.
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Muriel Thomas, international distribution director at Magic Light Pictures (MLP), outlines how the audience for the company’s holiday specials is evolving, the digital strategy for this content and her slate for Mipcom.
What new animated holiday specials has MLP got lined up for Mipcom?
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