The 2023 SAG-AFTRA strike was one of the most recent and recognizable protests in the entertainment industry because of its impact on what media has to be in the 21st century. Many recognizable actors and directors joined forces to fight the arrival of AI and clear up disputes over streaming residuals. This iconic strike hasn’t been the only movement to fight these changes; it was just the beginning.
Since the beginning of 2024, The Animation Guild’s (TAG) causes for concern not only overlap with the previous claims of SAG-AFTRA, but also highlights underrepresented worries about the future of entertainment. Animated movies, television shows, and video games are in danger. While movies like Inside Out 2 or The Wild Robot are still being presented, it’s the team behind them who are more affected than the actual productions. Layoffs, budget shortages, outsourcing, and artificial intelligence (AI) are eliminating the sustainability of being an animator.
The first issue highlighted by TAG is budget cuts and layoffs. Many animation studios in the United States are disappearing because they either are victims of corporate acquisitions or have to file for bankruptcy. “Corporate” animation studios (Disney, Pixar, Universal, Sony, Paramount, etc.) have a tendency to acquire other animation studios to limit the competition, expand their reach, and, in the process, become the owners of the intellectual property rights of their franchises, according to Investopedia. For example: Blue Sky Studios, the studio in charge of Rio and the Ice Age movies, was bought by Disney in 2019 and later eliminated in 2021 during the pandemic. According to Movieweb, Disney couldn’t afford to maintain three animation studios. If a corporation like Disney (who now owns 8 studios) couldn’t keep up at the time, what’s the hope for small animation studios? Many, because of the big costs, have had to file for bankruptcy. Then the employees are forced to make the decision to either work in freelance or sign under a big animation studio.
What is the experience for the latter? It doesn’t last that long. Many of the big studios have increased the layoffs of artists and overhead staff in their animation departments as a consequence to budget cuts. According to a 2023 Animation Industry Layoff Tracker, more than 20 companies in animation, VFX, and video game development laid off over 5,000 employees in total. The study is just a small glance of the bigger wave of layoffs overtaking the United States. Even 14% of the team behind Inside Out 2, the current highest-grossing animated movie of all time, got laid off before they could benefit financially from the movie’s success, reveals IGN.
With little money and people to work with, corporate studios have found interesting ways to get the job done. First option: keep hiring animators as staff, but assigning them tasks outside of their job description. For example, it’s common for storyboard artists to not only picture the angles and timings of a sequence, but to create backgrounds, color, and even animate them with no salary raise. These overworked and underpaid artists are forced to wear many “hats” to sustain themselves. Second option: hire freelance writers and animators to work per project. The assignments don’t bring a steady income since they tend to last months or, sometimes, only weeks. There is no minimum time period a company has to employ an animator, which is a big part of the problem. This dynamic slowly phases out the idea of an animator as a stable staff position in a studio and creates the pressure for these workers to chase a new temporary job every time a project is finished.
The second issue is outsourcing. It’s the process where a studio produces their animated features outside of their headquarters. Many opt to work in close places, like Canada, or farther countries in Asia and Europe. This decision is made simply to pay for a cheaper hand. This movement is not only present in the United States, but also in Japan, the capital of anime. Terumi Nishii, one of the awarded animators for Jujutsu Kaisen, in an interview with Patrick Macias said that, because anime is so popular, many animators are overworked to extreme circumstances simply to meet short deadlines. Unlike here, where we are used to animated features taking time, the Japanese studios outsource to help meet said deadlines because it ensures a big profit. In the end, both versions of outsourcing prioritize money over their employee’s life and salary.
The third and biggest issue is Generative AI. According to Critical Crossroads, an extensive study made by TAG on the impact of AI and the importance of protecting animation from it reveals: more than 78% of animation studios will adopt AI in the next 3 years; 51% of them will use it for 3D assets; 41% in 2D assets; and 25% for writing scripts. It is a big threat. Simple tasks related to design, production, animation, and scriptwriting are already capable of being made by AI. Entry-level jobs in animation are in danger of being gradually eliminated, making it harder to be accepted for a job position because of elements out of their control like low education level or lack of experience. The TAG’s biggest priorities to tackle GenAI, listed in the study, are: adding provisions that prohibit GenAI to replace covered work, prevent the use of a TAG member’s work to train GenAI, advocate for staffing minimums and guaranteed weeks of employment, among others.
The animation industry in the United States has faced too many challenges, particularly in the wake of the pandemic, even when it was one of the few sectors to thrive during that time. It remains undervalued and perceived as a financial liability. This perspective has led to the cancellation of beloved projects like The Owl House, Inside Job, Infinity Train, and many others. It is essential to voice your concerns and advocate for its rightful recognition and investment. Be part of the conversation by using #StandWithAnimation on social media to amplify your support for the animators and stories you love!