Latest news with #AnimationGuild
Yahoo
02-05-2025
- Business
- Yahoo
California, Once a Mecca for Animation Work, Is Rapidly Losing Ground, Report Claims
When Walt Disney Animation Studios opened its Vancouver production facility in 2021, the first project it took on was the series adaptation of Moana, which later became the more than $2 billion feature-film box office hit Moana 2. This development served as a 'warning sign' for the California animation industry, according to a new report from the Animation Guild, BRIC Foundation and Titmouse Foundation in partnership with CVL Economics. The original Moana was largely produced at Disney's Burbank studio, and the move up north meant that much of project's economic impact — Moana 2 could have entailed as many as 817 jobs, $87 million in wages and $178 million in state GDP, the study claims — went to Canada, rather than to California. More from The Hollywood Reporter Writers Guild West Staff Union Voluntarily Recognized Cinematographers Guild Elects John Lindley Its National President SAG-AFTRA Launches Influencer Committee Amid Further Push Into Creator Economy And the decision was emblematic of a trend that's been accelerating over the last decade or so, according to data laid out in the study. Between 2010 and 2023, California's share of the highest-grossing animated films dropped from 67 to 27 percent. Between 2019 and 2024 animation employment dropped by nearly five percent in California while other jurisdictions saw major upticks (more than 18 percent in New York, nearly 72 percent in British Columbia and nearly 13 percent in Ontario). 'This shift underscores a growing structural disadvantage for California and highlights the urgent need for policy interventions that re-anchor high-value animation jobs in the state,' the report states. The Hollywood Reporter has asked Disney for comment. Released Thursday, the study aims to convince policymakers to pass proposed amendments to California's film and television tax credit program that would render animated films and television shows eligible for the first time. Beyond animation's inclusion in the program, animation stakeholders have additionally been advocating for enhancements like a decrease in the $1 million minimum budget for eligible projects in a bid to include children's programming, which tends to operate with smaller budgets than adult animation. But it remains to be seen how realistic those changes might be as the bills' passage remains far from certain. While California currently has no animation incentives, 30 other states do, including New York, Georgia, Texas and Oregon. Canada and Australia, meanwhile, have 'emerged as global leaders' on the international stage by offering layered incentives that can amount to as much as 46 percent in Canada's case, the report states. Back in California, even some work that has historically taken place in-state is trickling out. A survey of 648 Animation Guild members included in the report found that several state-based projects have begun outsourcing components of their work overseas. The report cited SpongeBob SquarePants, Fairly OddParents and Looney Tunes as titles that are now relying on international workers for at least some of their production pipeline. (THR has reached out to Nickelodeon and Warner Bros. Discovery for comment.) It's become fairly standard for development to take place in-state while other components of the work are increasingly sent elsewhere. 'Production phases are already largely outsourced, and pre- and post-production are seeing increasing movement — putting the entire production chain at risk,' the report claims. This statewide decline is playing out against a larger backdrop of global animation optimism. While the COVID-19 pandemic played a notable role in boosting production — given that animation work can largely be done remotely, as opposed to live-action — the genre has nonetheless continued to thrive since. The report finds that the number of animated projects commissioned globally rose from 558 in 2019 to 828 in 2022 to 860 in 2024, accounting for an increase of 54 percent. And there's further cause for confidence on the horizon. The report states that the animation market is estimated to grow 117 percent between 2024 and 2034, from being valued at $413 billion to $898 billion across film, TV, video games, digital platforms and advertising. The report makes a plea for lawmakers to ensure their state isn't left behind as the world moves on. 'California still retains significant advantages — proximity to major studios, skilled workforce, cultural alignment, and high-quality production,' the report states. 'However, these strengths are rapidly eroding as competing regions build their own animation ecosystems.' The study adds, 'Without prompt action to match global incentives, California risks permanent displacement as the heart of animation innovation — forfeiting not just today's productions but tomorrow's pioneering advances in a rapidly evolving digital economy.' Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire
Yahoo
02-05-2025
- Business
- Yahoo
Animation Guild Seeks Enhanced California Subsidy to Combat Outsourcing
Seeking to combat the longstanding flow of animation jobs to Canada and other locations, the Animation Guild issued a report on Thursday urging California to improve its tax incentive program. California's $330 million tax incentive is limited, for now, to live-action films and TV shows. Two bills, SB 630 and AB 1138, would expand the program to $750 million and would include animation for the first time. More from Variety Film Workers to Rally Sunday in Support of Doubling California Tax Incentive: 'There's Been No Work' California Lawmakers Move to Hike Film Credit to 35% for L.A. Shoots, Include Animation and Sitcoms Untitled Daniels Film, 'Community' Movie, 'Cut Off' Secure California Production Tax Credits The guild report, prepared by CVL Economics, argues that would not be enough. 'The state is now decades behind the aggressive policy strategies implemented by global competitors, and the erosion of in-state production has had a profound impact on its once-thriving animation talent pipeline,' the report states. As an example, the guild points to 'Moana 2.' The original film was produced in Burbank, but much of the sequel was made at Disney's facility in Vancouver. The union argues that decision cost California 338 jobs, plus another 479 jobs when indirect effects are taken into account. Outsourcing has long been a source of contention between the studios and the guild, and led to two strikes in 1979 and 1982. In negotiations last year, the guild proposed eliminating the outsourcing clause in the contract, but the Alliance of Motion Picture and Television Producers rejected the idea. Jeanette Moreno King, the president of the Animation Guild, said that while animation work has been sent overseas for a long time, studios have begun to ship many other tasks abroad as well, including storyboarding and directing. 'Now they are sending out entire productions,' she said. 'They've expanded what they send out. Some shows are completely not made here.' King has been involved in lobbying on the bills to expand the tax incentive program. She said that while the current bills include animation, many children's TV shows wouldn't be eligible because they don't meet the thresholds for budget and episode length. 'It's a win just to get it in there at all,' she said, adding that it's probably too late in the legislative process to do anything about the thresholds. The CVL report also notes that visual effects work has been poached by Canada for decades, with post-production hubs established in Montreal and Vancouver, while other hubs have also taken root in London and Seoul. The guild argues those jobs deserve consideration because they are at the cutting edge of technology. 'If California wants to maintain its leadership in entertainment, the state cannot only simply protectlegacy production models — it must invest in the future of the industry,' the report argues. 'Rebuilding a robust cluster of animation talent is not about nostalgia; it's about talent competitiveness.' The current California tax incentive program includes a 5% bonus for live-action productions that spend at least 75% of their VFX budget in California. The report argues that is not competitive with VFX incentives in British Columbia and other places. Some productions use the California tax incentive for principal photography and then complete their VFX work elsewhere. The report argues that VFX work should be excluded from the state's $100 million per-project cap, which would provide a much greater inducement to keep those jobs in state. The report also argues for a carve-out for animation work within the $750 million annual allocation. As it stands, animated TV shows and films will have to compete against live-action shows on a 'jobs ratio' score in order to win credit allocations. Lawmakers have been hashing out the details of the legislation in negotiations with the Motion Picture Association and a coalition of entertainment unions. In their current form, the bills would increase the base amount of the state tax credit from 20% to 35%, with a potential 5% bonus for filming in economically depressed areas or in areas outside of Los Angeles. The Alliance of Independent Commercial Producers has also advocated — so far without success — to include commercial production in the state subsidy. Best of Variety Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival New Movies Out Now in Theaters: What to See This Week What's Coming to Netflix in May 2025
Yahoo
02-05-2025
- Business
- Yahoo
Animation Guild Seeks Enhanced California Subsidy to Combat Outsourcing
Seeking to combat the longstanding flow of animation jobs to Canada and other locations, the Animation Guild issued a report on Thursday urging California to improve its tax incentive program. California's $330 million tax incentive is limited, for now, to live-action films and TV shows. Two bills, SB 630 and AB 1138, would expand the program to $750 million and would include animation for the first time. More from Variety Film Workers to Rally Sunday in Support of Doubling California Tax Incentive: 'There's Been No Work' California Lawmakers Move to Hike Film Credit to 35% for L.A. Shoots, Include Animation and Sitcoms Untitled Daniels Film, 'Community' Movie, 'Cut Off' Secure California Production Tax Credits The guild report, prepared by CVL Economics, argues that would not be enough. 'The state is now decades behind the aggressive policy strategies implemented by global competitors, and the erosion of in-state production has had a profound impact on its once-thriving animation talent pipeline,' the report states. As an example, the guild points to 'Moana 2.' The original film was produced in Burbank, but much of the sequel was made at Disney's facility in Vancouver. The union argues that decision cost California 338 jobs, plus another 479 jobs when indirect effects are taken into account. Outsourcing has long been a source of contention between the studios and the guild, and led to two strikes in 1979 and 1982. In negotiations last year, the guild proposed eliminating the outsourcing clause in the contract, but the Alliance of Motion Picture and Television Producers rejected the idea. Jeanette Moreno King, the president of the Animation Guild, said that while animation work has been sent overseas for a long time, studios have begun to ship many other tasks abroad as well, including storyboarding and directing. 'Now they are sending out entire productions,' she said. 'They've expanded what they send out. Some shows are completely not made here.' King has been involved in lobbying on the bills to expand the tax incentive program. She said that while the current bills include animation, many children's TV shows wouldn't be eligible because they don't meet the thresholds for budget and episode length. 'It's a win just to get it in there at all,' she said, adding that it's probably too late in the legislative process to do anything about the thresholds. The CVL report also notes that visual effects work has been poached by Canada for decades, with post-production hubs established in Montreal and Vancouver, while other hubs have also taken root in London and Seoul. The guild argues those jobs deserve consideration because they are at the cutting edge of technology. 'If California wants to maintain its leadership in entertainment, the state cannot only simply protectlegacy production models — it must invest in the future of the industry,' the report argues. 'Rebuilding a robust cluster of animation talent is not about nostalgia; it's about talent competitiveness.' The current California tax incentive program includes a 5% bonus for live-action productions that spend at least 75% of their VFX budget in California. The report argues that is not competitive with VFX incentives in British Columbia and other places. Some productions use the California tax incentive for principal photography and then complete their VFX work elsewhere. The report argues that VFX work should be excluded from the state's $100 million per-project cap, which would provide a much greater inducement to keep those jobs in state. The report also argues for a carve-out for animation work within the $750 million annual allocation. As it stands, animated TV shows and films will have to compete against live-action shows on a 'jobs ratio' score in order to win credit allocations. Lawmakers have been hashing out the details of the legislation in negotiations with the Motion Picture Association and a coalition of entertainment unions. In their current form, the bills would increase the base amount of the state tax credit from 20% to 35%, with a potential 5% bonus for filming in economically depressed areas or in areas outside of Los Angeles. The Alliance of Independent Commercial Producers has also advocated — so far without success — to include commercial production in the state subsidy. Best of Variety Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival New Movies Out Now in Theaters: What to See This Week What's Coming to Netflix in May 2025
Yahoo
07-03-2025
- Entertainment
- Yahoo
Walt Disney Animation Studios Staffers Ratify First Union Contract
UPDATED, 5:30 PM: Some 17 months after unionizing, production management staffers at Walt Disney Animation Studios have ratified their first labor contract. The vote conducted by IATSE's Animation Guild was 93% in favor of sealing the deal, with 96% of eligible voters casting ballots. The contract provides for production workers to receive protections including pension and health benefits, along with a 24% wage increase for production managers, a 29% hike for production supervisors and a 35% jump for production coordinators, who are the lowest-paid workers in the unit. More from Deadline In 'Historic First,' Marvel Studios VFX Workers Vote Unanimously To Unionize With IATSE Nickelodeon Production Workers Vote To Unionize With The Animation Guild Independent Writers' Caucus Adds 7 Board Members, Including 'Inside Out' Scribe Meg LeFauve & Former WGAW President Howard Rodman Read about Disney Animation Studios' effort to unionize with IATSE Local 839 below. PREVIOUSLY, November 1, 2023: Production workers at Walt Disney Animation Studios have gone union. Eligible staffers at the toon studio voted overwhelmingly to be represented by IATSE and the Animation Guild for collective bargaining. The latter, IATSE Local 839, said the vote was 93% 'yes' on an eye-catching 96% turnout. Only five members voted no. 'Congratulations to the production workers at Disney Feature Animation!' the Animation Guild tweeted. Today, they voted in an election to be represented by @IATSE and TAG. With 96% voter turnout, 93% voted yes!!! Let's celebrate!' The union will rep about five dozen production coordinators, production managers and production supervisors. The staffers revealed their intent to unionize back in March. Overseen by the National Labor Relations Board, the Disney Animation Studios election began in mid-October via secret mail-in ballot, and the results were revealed today. Other workers including managers, confidential employees, guards, and supervisors are not part of the deal. The vote follows recent successful unionize efforts by VFX workers at Disney corporate sibling Marvel Studios and production workers at Nickelodeon. Best of Deadline 2025 TV Series Renewals: Photo Gallery 2025 Awards Season Calendar: Dates For Tonys, Emmys & More 2025 TV Cancellations: Photo Gallery
Yahoo
07-03-2025
- Entertainment
- Yahoo
Walt Disney Animation Studios Production Workers Ratify Historic First Union Contract
Production management workers at Walt Disney Animation Studios have officially ratified their first union contract with the studio. This agreement comes after an intense organizing effort that saw a supermajority of production workers vote to unionize in February 2023. The agreement was overwhelmingly ratified by the unit with 96% voter participation and ratified with 93% support. More from Variety 'Moana 2' to Release on Disney+ This Month Animation Guild, AMPTP Reach Tentative Contract Deal Animation Guild, AMPTP To Resume Bargaining in September, No Deal Reached This Week The ruling affirmed the eligibility of full-time production coordinators, production supervisors, and production managers to unionize with the International Alliance of Theatrical Stage Employees and The Animation Guild, IATSE Local 839. 'It's been an uphill journey, but at long last, we've reached the mountaintop. We are standing in our breakthrough — stronger, bolder, and united,' said production coordinator Tamara Lee. Under the contract, production workers will now receive protections including pension and health benefits. Additionally, substantial wage increases to the minimums have been secured: a 24% increase for production managers, a 29% increase for production supervisors, and a 35% increase for production coordinators — the lowest-paid workers in the unit. Union organizer Allison Smartt said, 'During this downturn in entertainment production, production management workers at one of the most powerful corporations in the world stood up and demanded more. Their daily fight for fair treatment and pay is often outside the public eye.' Smartt added, 'They've been signing petitions, marching to deliver signatures, staging courageous silent protests in front of executives, and regularly engaging in the fight for their fair share for years, setting an inspiring example. They've won a historic contract that will have positive impacts long into the future and throughout the animation industry and I know they aren't done yet.' Negotiations are currently underway with DreamWorks Animation for their first contract, marking the second time feature film production management workers have organized with TAG — this time including their television counterparts. Production supervisor Nicholas Ellingsworth said, 'In Hollywood, we love an underdog story. Our ratification was just that — the underrepresented and underpaid coming together and demanding better pay and equity with our artistic counterparts. In the end, we were heard and seen, and we have a pathway to further improving the conditions in which production management works.' Ellingsworth went on to say, 'We know our colleagues at DreamWorks Animation are in the middle of their negotiations, and we're wishing them all the luck, patience, and perseverance in their conversations. Production management is no stranger to strategizing to achieve their goals and navigating unexpected obstacles. There is no doubt they'll come out on top.' Best of Variety New Movies Out Now in Theaters: What to See This Week Oscars 2026: First Blind Predictions Including Timothée Chalamet, Emma Stone, 'Wicked: For Good' and More What's Coming to Disney+ in March 2025
