Toon2Tango has acquired the rights to adapt a Finnish kids feature film franchise about a young flying reindeer into an animated series for six to 10s.

The German studio has inked a deal with IP owner Animaker to develop, finance, produce and distribute Niko, which is planned as a 52 x 11-minute, CG-animated series. It’s budgeted at US$7.4 million and will deliver in 2026.

The Niko IP is popular in Germany, where two films have already been released, collectively grossing more than US$40 million worldwide, according to Box Office Mojo. Animaker is currently co-producing a 2024 holiday feature called Niko—Beyond the Northern Lights (pictured) with Germany’s Ulysses Films, Ireland’s Moetion Films and A. Film Production in Denmark.

Toon2Tango is also developing 2D-animated comedy series Showtime (52 x 11 minutes), in which a troupe of kids puts on plays and performances to help people in their community, entertaining the patrons of a retirement home, for example. The project is designed to inspire kids ages three to six to be creative and engage in more pretend-play, says CEO Ulli Stoef.

The German studio is in talks with a domestic broadcaster to shore up the last bit of financing for Showtime. A bible, pilot script and teaser are ready to share, and the series is budgeted at US$6 million.

Since launching in 2019, Toon2Tango has focused on development and IP creation, leading to series such as Agent 203 and Hey Fuzzy Yellow. But now it’s working towards expanding into production so it can control project quality from start to finish, says Stoef. This move could see the company launch its own animation studio—or acquire an existing one—by Q3/Q4 this year.

Germany appears to be turning a corner in its approach to providing support for the local screen industry, Stoef adds. Right now, the country has no tax incentives for animated series, and its tax credits are reserved for film projects. But the hope is that a new incentive, to the tune of 30%, will be introduced later this year. This would mirror a similar recent development in Austria, which introduced a new 35% cash rebate for Austrian films and TV series in January.

German prodco Leonine acquired a 25.1% stake in Toon2Tango last October, which is fuelling the animation studio’s plans for growth. Leonine also produces and distributes content, and has resources that Stoef feels could pave the way for future kids TV success. “Financing is taking longer than ever, and in 2023 and 2024, it feels like buyers are relying on library content, which can be a challenge,” he says. “But after a downswing, there’s always an upswing, and we have a lot in production that we’re excited about.”