Dang, that's disappointing . . . if true. That's being report by the Daily Mirror, and I don't know how accurate they've been with Who stuff.
I've thoroughly enjoyed the animations. Yeah, I know they haven't used the best animation. But I was never able to get into the reconstructions. And it's not like they were animating replacements for the latest blockbuster movies with the top special effects. We're talking about an old, low budget show. The animations really were on par with the show. When I watch these animations, it feels like the real show. YMMV.
It's particularly a shame because it seemed like the entire range was going to be reconstructed. As the article points out, the first four seasons only need one reconstruction each to be complete! That puts the kibosh on complete sets for those seasons. Ugh!
Maybe some other funding source will step up?