Disney
The film industry in 2024 has taken a hit, largely due to the after-effects of strikes from the previous year, economic fluctuations, and underwhelming summer blockbusters. However, amidst the turmoil, the animation sector has shone, playing a crucial role in keeping Hollywood buoyant. Successful animated films like “Inside Out 2” have not only outperformed their predecessors but have also made it to the top 10 highest-grossing films of all time.
Recently, “The Wild Robot” and “Moana 2” have emerged as substantial hits for DreamWorks Animation and Disney, respectively. “Moana 2” has even smashed box office records, indicating the enduring popularity of the animation medium. However, the success of these films may veil a more concerning reality for the industry.
The animation industry is currently facing an existential crisis. The industry has long been undermined by Hollywood, but the current situation is dire. Layoffs have swept across every studio, from Pixar to DreamWorks and Netflix, as the streaming bubble has burst and increased spending on animation during the pandemic has resulted in cost-cutting measures across the board.
The issues run deeper, though. “Moana 2” and “The Wild Robot” are indications of a significant shift in the medium – outsourcing. DreamWorks announced last year plans to move its production from in-house to outsourcing, making “The Wild Robot” the last U.S.-produced animated movie. Conversely, “Moana 2,” initially intended to be a limited series for Disney+, was largely produced at Disney’s Canadian subsidiary, potentially setting a new trend in the industry.
The Impending Threat of Outsourcing in Animation
DreamWorks Animation
With the global animation industry experiencing massive growth, studios worldwide are gaining more attention, with streaming platforms exposing audiences to a variety of animation styles beyond traditional American studio projects.
However, to cut costs, American studios are increasingly moving productions overseas, like DreamWorks. The concern is that outsourcing leads to non-union work. Disney’s Canadian animation studio, which produced “Moana 2,” is non-union, as is Sony Imageworks, DreamWorks’ new production partner. At a time when union work is becoming more critical due to the dual writers and actors’ strikes in 2023, the outsourcing of productions to non-union studios is a significant concern for The Animation Guild.
The Animation Guild, the primary union in the field, has previously grappled with this issue. In 1979, post-strike, the union won a protective clause against “runaway production”, ensuring local employment before work could be outsourced outside of Los Angeles County. However, a 1982 strike failed, and the union agreed to a studio-favorable contract, leading to heavy outsourcing of TV animation overseas. By 2003, 90% of all animation work for American studios was being done in Asia.
There have been recent reports that some animation projects may have unknowingly outsourced work to North Korea, including episodes of Prime Video’s “Invincible.”
What Lies Ahead for Animation
Disney
Outsourcing to non-union areas means less protection for animation workers. Japanese studios, for example, are known for severe crunch and overworking, with animators working long hours for meager pay. With the industry-wide push to cut costs and meet deadlines, conditions could deteriorate further for animators. It’s not just about far-flung studios working on international productions – even local productions, like “Spider-Man: Across the Spider-Verse,” have reports of animators suffering from crunch and overwork.
Then there’s the threat of AI. Jeffrey Katzenberg, co-founder of DreamWorks and former chairman of Walt Disney Studios, predicted that AI could eliminate 90% of animation artist jobs. “In the good old days, when I made an animated movie, it took 500 artists five years to make a world-class animated movie,” Katzenberg said. “I think it won’t take 10% of that three years from now.” Even Ridley Scott has expressed his interest in embracing AI for animation.
While “Moana 2” and “The Wild Robot” have proven the power of animation to attract a wide audience and maintain box office sales, the wrong lessons from their success could spell disaster for the medium.
Credit: www.slashfilm.com
