Strategic IP Adaptation and Cross-Platform Monetization: The Investment Potential of Hybrid-Format Content in Streaming

The global entertainment landscape is undergoing a seismic shift, driven by the convergence of streaming platforms, book-to-screen adaptations, and video game tie-ins. As audiences demand more immersive and interconnected content, companies that master cross-platform IP strategies are poised to dominate the market. This analysis explores the financial and strategic implications of hybrid-format content production, with a focus on Xilam Animation and UGC's Empire of the Ants as a case study for leveraging global family entertainment demand and IP longevity.

The Rise of Hybrid-Format IP: A Market-Driven Imperative

The global family entertainment streaming market is projected to grow from $811.37 billion in 2025 to $2,660.88 billion by 2032, at a compound annual growth rate (CAGR) of 18.5% according to market analysis. This surge is fueled by demand for on-demand content, AI-driven personalization, and the strategic repurposing of intellectual property (IP) across formats. Book-to-screen adaptations, in particular, have proven to be a cornerstone of this growth. For instance, Netflix reported 4.5 billion views in 2025 for adaptations like The Woman in Cabin 10 and The Thursday Murder Club, which not only boosted viewership but also drove book sales and content diversity.

Simultaneously, the video game market is expanding rapidly, with revenues expected to rise from $224 billion in 2024 to $300 billion by 2029. Cross-industry collaborations-such as integrating gaming elements into streaming content or vice versa-are becoming critical for maximizing IP value. For example, high-quality film adaptations can increase average concurrent users by 69%, as seen in recent transmedia campaigns. These synergies underscore the importance of a unified IP ecosystem.

Xilam and UGC's Empire of the Ants: A Model for Cross-Platform Success

Xilam Animation and UGC's adaptation of Bernard Werber's Empire of the Ants exemplifies the potential of hybrid-format IP. The project combines UGC's live-action expertise with Xilam's CGI prowess to create a dual-narrative series: one following a human investigation into ant expert Edmond Wells' death, and the other exploring a political thriller within the ant colony according to industry reports. This approach not only broadens the target demographic (appealing to both children and adults) but also aligns with global trends favoring "world-building" content that fosters long-term engagement.

Financially, Xilam's strategic pivot toward proprietary IP is paying off. Despite a 64% revenue decline in H1 2025 due to reduced servicing contracts, the studio invested €8.3 million in original productions, including Empire of the Ants. This bold move positions Xilam to capitalize on recurring revenue streams from its catalog, a model that has proven resilient in the face of linear TV's decline according to industry analysis. Meanwhile, UGC's involvement adds credibility, as the French studio has a track record of producing high-concept family content.

The IP's cross-platform potential is further bolstered by its existing video game adaptation. generated $39.99 per unit, with estimates suggesting 50,000–100,000 copies sold. While critical reception was mixed-some reviewers criticized repetitive gameplay-others praised its photorealistic visuals and multiplayer mechanics. Crucially, the game's release primed the IP for broader recognition, creating a foundation for the TV series to build upon.

Strategic Advantages and Long-Term Returns

The Empire of the Ants project benefits from three key strategic advantages:
1. IP Longevity: Bernard Werber's novel is a global bestseller, providing a built-in audience and reducing the risk of unproven concepts.
2. Global Scalability: The hybrid live-action/CG format is adaptable to international markets, with Xilam's global distribution networks ensuring wide reach according to industry reports.
3. Monetization Synergies: The IP's expansion into games, merchandise, and virtual events mirrors successful models like Pokémon and Fortnite, which generate revenue across platforms.

Financially, the project aligns with industry benchmarks. The media sector's 19% EBITDA margin in Q3 2025 highlights the profitability of well-executed IP strategies, while the game publisher market's projected growth to $512 billion by 2034 underscores the viability of transmedia monetization.

Risks and Mitigations

Critics may question the game's lukewarm reception and Xilam's short-term financial losses. However, these risks are mitigated by the studio's strong balance sheet and focus on long-term value creation. Additionally, the series' dual-narrative structure addresses genre versatility, a key driver of streaming platform success.

Conclusion: A Blueprint for Future-Proof Entertainment

As the entertainment industry consolidates around hybrid-format IP, Xilam and UGC's Empire of the Ants stands out as a forward-thinking investment. By leveraging a proven literary IP, integrating gaming elements, and targeting global family audiences, the project embodies the strategic agility required to thrive in a competitive market. For investors, this case study illustrates how cross-platform monetization-not just content creation-will define the next era of streaming and gaming.