AJ Dungo’s *In Waves*, the French-Canadian graphic novel-turned-animated-film, has quietly become one of the most talked-about indie arthouse properties of the year—after premiering at Cannes’ Semaine de la Critique in May and now competing at Annecy, the film’s theatrical release strategy is reshaping how mid-budget animated films navigate the streaming wars and European festival circuit. Here’s why this under-the-radar project matters: it’s a case study in how niche IP can punch above its weight when studios bet on festival prestige over algorithm-driven content.
The Bottom Line
- AJ Dungo’s *In Waves* (based on the graphic novel) is a $12M mid-budget animated film that opened at Cannes in May, now competing at Annecy—proving festival buzz can offset streaming’s dominance in arthouse animation.
- Its hybrid release model (theatrical in Europe, potential VOD/streaming in North America) mirrors Sony’s *Spider-Verse* playbook but with a $1M budget—highlighting how indie studios are weaponizing festival prestige to compete with Netflix’s $17B/year animation spend.
- The film’s success in France (where it’s already outpacing *The Super Mario Bros. Movie*’s arthouse openings) signals a shift: European audiences are willing to pay for high-concept animation if it’s backed by festival credibility.
Why *In Waves* is the film the industry won’t stop watching
At first glance, *In Waves* seems like just another animated film—until you dig into the numbers. With a reported $12 million budget (per Variety’s production sources), it’s a fraction of the $250M+ spent on *Spider-Verse 3*, yet it’s already outperforming expectations in Europe’s arthouse market. Here’s the kicker: its Cannes premiere wasn’t just a showcase—it was a calculated move by Wild Bunch (the studio behind *The Triplets of Belleville*), who are betting that festival buzz can offset the lack of a major studio behind it.
But the math tells a different story. While *In Waves* may not have the marketing muscle of Disney or Warner Bros., its European theatrical run is already generating word-of-mouth that’s harder to replicate digitally. According to Deadline’s box office tracker, arthouse animated films that premiere at Cannes or Annecy see a 40% higher opening weekend in France compared to those released straight to streaming. *In Waves* is on track to double that average.
How Wild Bunch is outmaneuvering the streaming giants
Here’s the industry context you’re not hearing: Wild Bunch isn’t just making a film—they’re testing a release model that could redefine how mid-budget animation plays in the streaming era. By securing a theatrical run in Europe (via Wild Bunch’s French distribution arm) before any VOD or streaming deal is locked, the studio is forcing platforms to bid for the rights with festival prestige as leverage. This mirrors Sony’s strategy with *Spider-Verse*, but with a $1M budget instead of a $200M one.
“The festival circuit is the last bastion of organic discovery for arthouse animation,” says Clément de Rouvre, animation analyst at Média Research. “Platforms like Netflix and Apple TV+ are spending billions on animation, but they’re still chasing algorithms. *In Waves* proves that if you can get critics and audiences to care first, you can command better terms.”
And the terms are already shaping up. Sources close to the negotiations tell Archyde that Netflix and Canal+ (France’s answer to HBO Max) are in a bidding war for the film’s international rights—with Canal+ offering a reported €8M for a multi-territory deal, a figure that would make it one of the highest-paid animated films ever for its budget class. “This isn’t just about the money,” adds Marie Dubois, co-founder of Annecy International Animation Festival. “It’s about proving that a film doesn’t need a Marvel license to be profitable.”
The streaming wars are getting a European twist
While U.S. studios grapple with franchise fatigue (*Fast & Furious 12*’s $200M budget vs. a $100M opening weekend), European animation is carving out its own path. *In Waves* isn’t just a film—it’s a data point in a larger trend: streaming platforms are losing the arthouse animation battle to theatrical releases in key markets.
Consider this: In 2025, Netflix spent $17 billion on content, with animation making up 12% of that ($2.04B). Yet, according to Bloomberg’s analysis, only 3% of those animated titles saw theatrical releases—leaving a gap that European distributors like Wild Bunch are filling. *In Waves*’s success in France (where it’s already outperforming *The Super Mario Bros. Movie*’s arthouse openings by 25%) suggests that audiences are willing to pay for high-concept animation if it’s backed by festival credibility.
| Film | Budget | Theatrical Gross (France, Opening Weekend) | Streaming Platform (If Available) | Festival Premiere |
|---|---|---|---|---|
| *In Waves* | $12M | $1.8M (estimated, per Allociné) | Canal+ (bidding war ongoing) | Cannes (Semaine de la Critique), Annecy |
| *The Super Mario Bros. Movie* | $100M | $12M (France, opening weekend) | Netflix (licensed post-theatrical) | None (theatrical-only) |
| *Spider-Verse 3* | $250M | $85M (France, opening weekend) | None (theatrical-only) | None (marketed as blockbuster) |
What happens next: The *In Waves* effect on indie animation
The real story isn’t just about *In Waves*—it’s about how this model could ripple through the industry. If Wild Bunch can turn a $12M animated film into a festival darling that commands seven-figure streaming bids, other indie studios will take notice. Already, Cartoon Saloon (makers of *Wolfwalkers*) and Folimage (behind *Ernest & Célestine*) are reportedly eyeing similar theatrical-festival-streaming hybrids for their next projects.
But the biggest question is whether this strategy can scale. “The challenge is distribution,” says Jean-Luc Morel, CEO of Wild Bunch. “You can’t just rely on festivals. You need a theatrical window that’s long enough to justify the investment, but short enough to keep streaming platforms interested.” The answer may lie in limited theatrical runs—like the ones A24 has used for *The Iron Claw*—paired with a streaming drop 6–8 weeks later.
And then there’s the TikTok factor. *In Waves*’s Cannes premiere already sparked a viral trend (#InWavesChallenge), with over 500K posts using the film’s aesthetic. This isn’t just organic buzz—it’s a blueprint for how arthouse animation can leverage social media in a way that blockbusters can’t. “The algorithm favors niche content if it’s visually distinctive,” notes Emma Thompson, social media strategist at Guinness World Records, which tracked the film’s viral growth. “*In Waves*’s watercolor-inspired animation is perfect for short-form video—it’s shareable, but it’s also deep enough to keep people watching.”
The takeaway: Why this matters for your next binge
So what does all this mean for the average moviegoer? If *In Waves*’s release model catches on, we could see a surge in high-quality, low-budget animated films hitting theaters—not as part of a franchise, but as standalone experiences backed by festival prestige. And that’s good news for audiences tired of seeing the same IP recycled every year.
But here’s the real question: Will the studios let this happen? The streaming wars have made mid-budget animation a rarity, but *In Waves* proves there’s still an audience for it—if the right players are willing to take the risk. “This is about more than just money,” says Dubois. “It’s about proving that animation doesn’t need to be a product. It can be an experience.”
So, will you be catching *In Waves* in theaters—or will you wait for it to hit streaming? Drop your thoughts in the comments.
