How could animation be monetized in this current climate?

[Leviathan]

The biggest thing hurting animation right now is the difficulty monetizing it. Cable ratings are way down, and ad revenue is stagnating in decline. It's been a long time since a new cartoon became a Spongebob-tier merchandising bonanza. Home video is dying. Streaming was supposed to offer a solution, but animated shows seldom or make an impact on new subscribers on streaming, which Netflix et al. measure the success of a specific show, so it's hard to make a case for animation on streaming.

The only success stories in modern times (besides preschool shows and mega-sequels) are a handful of indie cartoons like the Glitch and Hellaverse shows. Those shows are monetized through expensive merchandise, like plushies and keychains. But to get to the point where you can sell merchandise, you have to be popular enough that people want to buy your merchandise, which is why successes in indie animation are pretty much limited to GLITCH and the Hellaverse.

This is a major problem for animation. If it's hard to make money making cartoons, it's hard to justify making new ones that are tied to some historic franchise. It's why the industry is in such shambles, and has been for years. I can't even think of how this problem could be resolved. How exactly could animation be monetized so it can seem like a good investment?

 

[Leviathan]

I kinda thought this topic would stimulate conversation

 

[Corwin Haught]

Trust me, if anyone had a valid idea regarding how to monetize animation, they wouldn't disclose it on a public forum.

 

[Pooky]

It is hard to think of something that could be successful without being less appealing to us as (as much as we may not like to think of ourselves in such terms) consumers. For example shows could release the pilot episode for free, and if it was a Digital Circus level success, could have subsequent episodes behind paywalls of rental and purchase fees. But who knows if that would work, and how many would actually choose it.

There’s always the option of being used for advertising, but you usually have to prove your character(s) have wide appeal first.