The animation industry is facing several challenges. While animation films make up 14.7% of total European cinema admissions, their share of admissions outside their home country is higher at 64%. On television, there has been a shift from public broadcasters to private children's channels, with public channels now representing less than 5% of animation content. There are over 300 children's channels in Europe, mainly from the US. New on-demand services provide an opportunity for animation, but financing remains under pressure. Major industry challenges include investing in and retaining intellectual property rights, improving financing and distribution, and developing skills in managing IP in the new digital landscape.