It’s no secret that animation production — and children’s content in general — is facing a difficult period worldwide, particularly in Europe. The reasons are known: the declining appeal of linear TV channels among younger audiences; the drop in investment from streaming platforms, which, amid corporate reorganizations, are deprioritizing kids’ content; the growing competition from social media and gaming in the “media diet” of young people, and so on.
In Italy, the situation has been further complicated in 2025 by the simultaneous redefinition of the public broadcaster RAI’s strategies and the pausing of tax credits — the two primary funding sources for the sector in recent years.
Globally, we have fewer international co-productions, a nearly stagnant acquisitions market, and a fragile licensing and merchandising sector. Meanwhile, a vast number of authors and creatives, trained during the growth years, now face dwindling professional opportunities as competition from AI begins to take hold.
While animation is not a medium aimed solely at children and kids — with sectors like adult animation and manga showing signs of a counter-trend — the overall situation for both animation and other premium content for young audiences remains critical.
It may seem that top management at large corporations — busy with big strategies, mergers and acquisitions or simply culturally disconnected from the kids’ genre — are less interested in prioritizing quality in new productions, assuming that cost containment is what now matters most and that, eventually, everything will just work itself out.
Despite that, I believe there are underlying shifts and opportunities for a new phase of recovery and growth, provided the sector can interpret and seize them. A key factor is the rising awareness of the harm caused to children and adolescents by the widespread use of smartphones and social media.
Whether the solution will be the Australian model of banning social media until age 16 or other measures currently under discussion remains to be seen. However, even though smartphones are a relatively recent phenomenon and long-term medical and sociological research is still catching up, one thing is now certain — the current use of smartphones by children and social media by teens is detrimental to their personal and social development. It is an addiction that weakens social bonds and paves the way for other forms of youth distress.
The audiovisual industry must be ready to respond to this growing awareness and the coming regulatory changes with a new line of offerings. This is not just a “let’s ban social media and go back to the past” sentiment. Many shifts in taste and consumption are here to stay. The success of “micro-dramas,” for instance, stems from the rise of reels (i.e., vertical videos) as a mainstream audiovisual pastime. The demand for a coordinated approach across linear and nonlinear platforms, publishing, podcasts, gaming, and live theatrical events is the new reality.
The debate on kids and social media will rekindle a focus on the importance of quality audiovisual offerings for children. Simultaneously, following the 2024-2025 adjustment period, the catalog of older product housed in platforms and broadcasters’ libraries will start looking less lustrous, driving a clear need for renewal.
Major nostalgia-fueled ventures in animation and drama will undoubtedly persist. This is partly due to caution and a lack of risk assumption, but also reflects the audience’s genuine aspiration for products that address a shared vision — something that can stimulate an unmet need for intergenerational communication. This strategy is a priority for major platforms and is widespread everywhere. In Italy alone the Sandokan TV series (a remake of a 1976 RAI show) was recently a huge success, and a major project on Corto Maltese has been announced. Meanwhile, for children and families, the world of the Papallas — protagonists of a hugely popular TV commercial during the ’60s — will be revived with a new colorful animated series.
The space for new original series has been severely compressed recently, but it will now likely start growing again. National broadcasters, especially — but not limited to — public service broadcasters, can once again play a key role in developing original properties. They can do so emphasizing the educational aspect of content, especially in this specific historical and cultural moment.
From entertainment to edutainment to purely educational content, there are many nuances and possibilities, including cross-pollination with school publishing and the gaming world. This commitment, for which there are strong marketing and cultural policy expectations, goes hand in hand with the essential need to maintain, consolidate, and strengthen the network of independent production companies. In these turbulent times, defending a decentralized and polycentric network of creativity and audiovisual production is a priority for national broadcasters and for the countries themselves.
We must focus, especially in Europe, on an extraordinary and coordinated effort to support the animation and children’s production sectors. It’s not rhetoric, but a clear and measurable objective to immerse children in the culture, history, language, and the artistic, recreational, and even nutritional settings of their own countries.
The current news about youth distress, particularly among those aged nine to 15 (the generation that has suffered most from the post-coronavirus social crisis), are impossible to ignore. The inability to manage emotions, and especially aggression (it’s no coincidence that “rage bait” is the word of the year), is a serious issue.
The greatest challenge lies in offerings for children aged seven to 12 — an age group that risks being neglected by the audiovisual industry. After preschool, which has its own established business model, publishers are tempted to target teens directly, prematurely adultizing a crucial developmental age group that requires dedicated attention.
It is a challenge that demands extraordinary action. Over the next two to three years, operators — and national broadcasters in particular — should increase their investment share in individual animation and high-end kids’ drama projects to break the current impasse, even if it means commissioning fewer titles. In recent years, the investment per project from commissioners has declined.
However, no commissioner will take such a counterintuitive step alone unless it is part of a collective cultural policy effort. This requires recognizing the strategic value that children’s audiovisual content holds for the well-being of both the youth and society at large in every country. Tightly weaving together the educational and business aspects of the sector is key to strengthening it in these current times.
(By Luca Milano*)
* Based in Rome, Italy, Luca Milano, now an independent consultant, is a former director of RAI Kids and a former deputy director of RAI Fiction, RAI’s department in charge of TV drama production.
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