Challenges and Innovations in Kids and Family Animation

The animation industry for children and families is facing significant challenges as traditional business models struggle to adapt to a rapidly changing media environment. During a panel discussion at the Quirino Future Lab in the Canary Islands, industry veterans Sherry Gunther Shugerman and Bobbie Page highlighted the pressures stemming from a post-streaming contraction, declining linear viewership, and tighter commissioning practices. Gunther Shugerman, co-CEO of the creator platform Heeboo and a former producer of notable shows like “The Simpsons,” emphasized that the economics of the animation business are "broken," with fewer buyers commissioning less content, primarily from established intellectual properties (IP).

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The panelists noted that the surge in streaming services had created a temporary "bubble" in children's programming, which has since burst as platforms reassess their strategies. Gunther Shugerman remarked that children's content has not consistently driven subscriptions, leading to a more cautious approach from streaming services. Concurrently, linear television is losing viewership among younger audiences, further complicating the landscape for producers of original content.

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Bobbie Page, head of production at Glitch Productions, discussed the implications of these changes on how projects are developed and who decides what content reaches children. She criticized the traditional gatekeeping role of executives, advocating for a model where creators can directly engage with audiences. Page highlighted Glitch's success in producing long-form episodes for YouTube, which allows them to build a dedicated fanbase before scaling their projects. This approach, she argued, empowers independent animators to retain ownership of their IP and generate revenue through merchandise, rather than relying solely on platform views.

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The panelists pointed to successful examples like “The Amazing Digital Circus,” which, despite being a new property, achieved over $6 million in pre-sales and expanded its theatrical release from 900 to 1,800 screens. Gunther Shugerman noted that the strategy of building a fanbase before production—illustrated by the project Claynosaurz—represents a shift in the traditional pipeline. This method allows creators to validate their concepts and secure funding based on audience traction, rather than producing content first and seeking viewers later.

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As the animation landscape continues to evolve, both Gunther Shugerman and Page acknowledged that legacy studios are unlikely to disappear entirely. However, as commissioning slows and risk aversion increases, creators who can cultivate and maintain their own audiences while retaining control over their IP are gaining significant leverage. Gunther Shugerman concluded, “It’s about creators being able to own their own destiny,” reflecting a broader trend towards creator-led models in the animation industry.

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• “The economics of the business are broken,” — Sherry Gunther Shugerman, Co-CEO of Heeboo

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• “Why is it that this select group of executives get to decide what all of the kids in the entire world get to watch?” — Bobbie Page, Head of Production at Glitch Productions

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• “It’s breaking the rules for what a YouTube business is and what a Youtube business can be,” — Bobbie Page, Head of Production at Glitch Productions

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• “Get the fan base, get the validation, get the capital,” — Sherry Gunther Shugerman, Co-CEO of Heeboo

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• “It’s about creators being able to own their own destiny,” — Sherry Gunther Shugerman, Co-CEO of Heeboo

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