Will FOX Succeed In the Online Arena With Animation?
It’s no secret that FOX has long been the dominant player of all the mainstream networks when it comes to animation but with audiences slipping away to the internet, what are they to do? Well, the apparent answer is to open up a new studio and attempt to compete with the likes of Frederator’s Cartoon Hangover.
The Gist of It
The Animation Guild is reporting that the new studio is currently in full swing and has about a hundred people working there at the moment. As part of the previously-announced extension of the Animation Domination block of shows into Saturday nights, the network also took the extra step of setting up a dedicated production house. (Non-union of course, hence TAG’s gripe.)
The studio is producing not only the content for the programming block (as in, Axe Cop and High School USA!) but is also busy cranking out animated GIFs such as the wonderful specimen you see below.
Where Things Get Interesting
Although this could be just another run-of-the-mill story about a new development in animation, where it takes an interesting turn is not where you would expect. Namely, FOX purposely kept production close to home:
Fast reaction time is another key to the ADHD approach. Instead of farming out animation work to Asian firms, with a lag time of at least six weeks, the team in Hollywood can shoot out topical spoofs to stay in the social conversation.
Fox’s toons prepare episodes well over a year in advance, said Reilly. “With ADHD, I can say something today and we can have something tomorrow.”
It’s nice in a way to see FOX accepting the need for speed in the online youth media market, and addressing it by employing talent close to home. It marks a potential bright spot in the otherwise gloomy animation industry that has had too many stories of layoffs over the past few months. Although pay is obviously not the highest, there is still potential for that to change if demand heats up thanks to a success or two.
That said, in contrast, Cartoon Hangover, instead of maintaining a studio for quick stuff, instead hires freelancers. Granted it isn’t as steady as regular employment, but if FOX did the same, they could pay animators more since the overhead of a studio wouldn’t exist.
The other interesting thing is how FOX sees the money streams:
Reilly declined to discuss specifically what kind of coin Fox is pumping into ADHD, saying that it’s not insignificant. The project will run at a “very mild deficit” for about three years before it gains ad traction, he said.
What I would like to know is why it will run a deficit for all those years. Online content has proven to be profitable already; surely it shouldn’t take an established player like FOX three whole years to make money. Of course, I’m also curious why ads are being given such weight; again, there are plenty of other revenue sources available that could suffice.
Before we reach the thrilling conclusion to this post; it really says something about animation as a form of entertainment that FOX sees it as the least risky way to get a foot in the door of online streaming. Can it really be that the ease of creating [quality] animation combined with its popularity among the key 18-34 demographic? It would certainly appear that way:
That noted, Reilly is convinced the model is an efficient way to develop quality content, and he’s eyeing other genres Fox might choose to replicate ADHD. “The cost structure of this stuff by its nature is different from TV,” he said. “The digital world continues to explode. It’s fun. And it has promise.”
Let’s see how this pans out. If it works, expect others to follow.
PS. Notice how FOX is about a year behind online-native efforts? Yeah, me too.