For a few years before the Covid pandemic, it seemed like an infinite amount of money was being poured into streaming services. Disney, Comcast, Apple, Netflix, and a host of outliers like Verizon and Quibi were pouring money into every seemingly decent show idea.
That was a golden period for viewers, as services like Disney+ and Apple TV+ had seemingly infinite budgets. Instead of dishing out good content and big-name shows, Disney's streaming service offered a new Star Wars or Marvel show seemingly weekly.
Related: Failed Chapter 11 Bankruptcy Puts Fast Food Chain in Its Final Days
Apple's streaming service and Comcast's Peacock, along with a handful of others, seemed to have an unlimited budget as they struggled to gain subscribers. It was a good time to watch television, but the economy didn't make sense.
Companies spent more money than they earned and that was not a sustainable model. At some point during the Covid days, it seemed like all streaming players came to the same conclusion. They had to be smarter about the shows they produced and cut their budgets.
If they weren't smart, they crashed. Quibi raised $1.75 billion in money from investors, launched in April 2020, and closed in December 2020.
The contraction left many media companies, actors and television industry workers hurt. The total amount of work went from an all-time high to an industry that has shrunk rapidly.
The situation has forced a seemingly successful company into bankruptcy and liquidation.
Image source: The street
Nickelodeon partner files for bankruptcy
Having one award-winning program or even several award-winning programs does not guarantee financial success.
Factory Transmedia, a British media company, won a 2024 Emmy for its Nickelodeon Jr. show, “The Tiny Chef Show.” She was also nominated for an Emmy for her animated preschool series “Slumberkins.”
That level of success was not enough to sustain the company and keep it financially viable.
Factory Transmedia closes after being subjected to what is called voluntary liquidation of creditors.
In the UK, “that means the company is insolvent and no longer has funds to pay its obligations,” cartoon beer reported.
Factory Transmedia blamed market conditions for its demise in a press release:
“Over the past 12 months, the number of projects approved by broadcasters around the world has fallen dramatically as the global economy and audience behaviors have changed markedly; these challenging market conditions were a major factor in the insolvency of the business.”
Transmedia factory for sale
Factory Transmedia has been a player in the UK animation space for over 20 years. He was involved in a high-profile reboot of “The Clangers,” a popular show launched in 1969 that the company helped bring back in 2015.
“The company was considered an animation success story for the Greater Manchester area and had opened a new studio in 2017 to accommodate its growing production slate,” according to Cartoon Brew. At peak production periods, it employed more than 100 people. His clients included Disney, Nick Jr., CBBC and CBeebies.
His disappearance was sudden and the company will not return.
JPS Chartered Surveyors has been appointed to help sell the company's assets through an online auction. It is a somewhat morbid affair which will include the sale of the company's puppets used for the satirical show Newzoids which aired on ITV in 2015 and 2016, as well as its studio equipment, according to a bbc report.
No news has been shared about what will happen to the programs that Factory Transmedia has and are currently in production.
