It is a turbulent time for the UK animation industry right now. Some companies and areas are doing well, other are finding times a little tougher. Larger companies are surviving better than most, particularly if they are involved in more than one area. Others, such as the independents and mid-sized companies are feeling a tightening on their purse strings.

“I think the downturn has definitely affected a lot of people, especially for independent companies like ourselves,” said Andy Wyatt, creative director at Fictitious Egg. With the concept of safety in numbers, independent companies, Fictitious Egg included, are looking towards merging with other companies in order to save money and pool resources. “The things we do are innovative, but I’ve found the last couple of years very tough. I’ve noticed a big drop in the amount of work we’re getting, and the budgets are getting slashed,” he added.

Risk is a biggest problem facing companies, and nowadays companies cannot just go to one broadcaster and get a commission. At least two broadcasters will become involved, and perhaps a distribution company too, so it becomes a safer co-production. Many are looking for quick returns, which is hard in animation, but are learning that if they produce strong animation, and widen their area of work, they are more likely to come out on top. This is even true of Cosgrove Hall Film, which is 75% owned by Granada. It continues to make high quality children’s shows, but is also breaking into adult animation and music videos.

TV and commercials are seeing the worst of the downturn. “It’s definitely quieter in the commercial sector, there’s no question that everybody’s suffering and animation is sometimes a self-sufficient niche to escape downturns, depressions and recessions but I think in this case its hard to ignore,” said Andrew Ruheman, * at Passion Pictures. “Those who are suffering least are probably either the people that have got long form things already going or the people who are incredibly wide spread and diverse, which includes ourselves of course.”

 “I think if we were just doing commercials, like the big Soho houses, we’d be in the same kind of trouble, because there’s been a 20 per cent fall,” said Sean Feeney, manager, CG at Jim Henson's Creature Shop. “There’s a reason for that too, said Dusan Struger, animation supervisor, The Water Giant, CG, at Henson’s. “People want to have film quality, so that’s changing.  Film is doing very well this year however, so for us the market is expanding.”
.
Across the board although the UK is providing great talent and innovative work, it’s funding is not coming from inside Great Britain. Most funding comes via the US, mainland Europe and Asia. “I find that most of the interest in what we are doing does come from foreign broadcasters to be honest. I think the UK broadcasters don’t seem to have much imagination in their approach to commissioning animation, they’re kind of a bit too market led, and are always looking for the next Simpson’s,” noted Wyatt.

Despite the creative advantages enjoyed by the UK animation industry, globally, far from expanding, it is stagnating. Commercial revenue is down, and film and television is up against fierce global competition. The UK finds it particularly hard to compete as many countries, such as France and Canada, are favoured with Government support, something that does not happen here. Other advantages foreign countries have are lower labour costs and better support and funding from domestic broadcasters. “Creatively we’re absolutely equal, financially we’re handicapped,” said Pelling. “There are subsidies around in Canada and financially we can’t compete against them. Creatively we survive because we are good. But the American systems, other studio majors and government systems create problems for us.”

The UK government has been aware of this, but to date not much has changed. A ‘UK television exports inquiry’ report from the Department for Culture, Media and Sport, in November 1999 said: “…we believe that animation is a special case. We feel that the extension of the present tax incentives alone would not provide the more level playing field needed by our animation sector. Indeed, we believe that if further assistance is not made available to UK animation, we will in time lose our presence in the genre completely.”

UK training is also an area that could see improvement. “I think we’re in danger of falling behind a bit on the computer animation side, largely because I don’t think we’ve got the training infrastructure,” said Ruheman. “ I don’t think we’ve thought hard enough about our training, and we don’t really have an apprentice system which is how all the classic animators learnt the heritage. We need fairly well structured courses and I don’t think we’re really there yet. 

“I think one of the things we are doing successfully and I hope the UK continues to do this, is to actually encourage 2D animators and stock frame animators to at least know how to use the computer and to be able to do both. That’s certainly happening in America, and think that’s got to happen here too,” he added.

Animation producers are being disappointed to find that many graduates have insufficient drawing skills, do not know about basic production issues, or traditional film making. Industry did create its own training scheme, but after funding was withdrawn this scheme ended and nothing has risen up to take its place.

Another issue is there is no place for education and industry to gather and discuss training problems. “On a structural level, the trouble seems to be that there is no obvious or easily accessible forum where those supplying the courses meet with those who are supposed to employ the students and they all get together and discuss their opinions,” said Feeny.

“If these universities are going to take a look at themselves and say ok, well we are not really delivering, what do you we need to do to deliver, - who should they ask?” noted Struger. “It doesn’t need a gradual change, it needs a change. We have jobs for the people, there is an industry for it, kids want to learn, we just have to change the education, that’s all!”

Although dark clouds cover the sky, not all is doom and gloom in the realm of UK animation. “I think its short-term doom and gloom, I’m taking the bigger picture and carrying on as normal,” said Ruheman. “We’re all tightening up our belts.”

Looking forward, many companies see this as a natural business downturn and expect things to head upwards in the near future. For now caution is in play, but work continues. Sales fairs such as Mipcom are showing good responses for UK work, which is definitely a good sign. Elephant productions, the company which is merging with Fictitious Egg to create Elephant Egg, saw a good response this year. “I would say UK animation is fairing extremely well at Mipcom and we are more than holding our own on the world stage. Early press information would appear to back this up and I can only say again that I think that it is the mediocre that will suffer most in the current downturn,” said managing director Sarah Muller.

Adult animation is an area of growth at the moment, as are shorts and interstitials, which many companies believe could lead to bigger things. The Simpsons started this way, and Pixar also began in this fashion. As for the film industry and Henson’s in particular: “Business is getting bigger,” said Feeny. “Commercials land is obviously badly hurt, but it will recover.”

All in all, the UK industry is looking at the bigger picture, and as an industry still only in its infancy, the companies believe they’ll be on the way back up very soon.