Does a Down and Out Economy Spell Doom for the Animation Industry?
Anish Patel
- 10 July 2022
Rising inflation. A tanking crypto market. Bored Apes crashing. A recession on the horizon. All signs point to a near future that’s got the earmarks of a dark fairy tale or an apocalyptic video game. With so much hanging in the balance, what does it mean for animators and animation studios?
When the average Joe or Jane is getting sticker shock at the gas station and grocery store, it can only mean one thing: inflation is skyrocketing. And fixing it will be a little more complicated than just raising interest rates at every Fed meeting.
Creatives tend to be among the first to feel these things. Netflix was the first to eliminate over 70 jobs at its animation studio. Economic disruption often hits us first and hardest. Media and Entertainment is not considered “essential.” So, with the economy on a definite downturn, what can content creators, animation producers, and others in the animation industry expect in the coming months?
Spoiler alert: it’s not so bad. After all, this isn’t our first rodeo. The 2008 recession offers a handy roadmap to help us navigate the rocky terrain ahead — and for animators, we’re actually shielded from the worst of it. Let’s look at why that is.
Demand for entertainment goes up during bad times
You might think that during a recession, the first things to go are the “luxuries,” like streaming services and subscriptions. Turns out, it’s the opposite. While people might be willing to cut back on some indulgences, entertainment isn’t one of them. In fact, the demand for movies, music, and TV goes up. This is exactly what happened during the slowdown in 2020 caused by the pandemic induced early lockdowns. 2022 may see some cutting back and rationalization in the number of subscriptions but not a whole lot.
This may be since entertainment offers two of the most precious assets for getting through tough times: escape and hope. And as the ultimate purveyors of escapism and fantasy, animators suddenly find that our stock has gone up when the chips are down. Suddenly, we’re needed for our very particular set of skills in content creation, story weaving, image conjuring, and world-building.
What’s more, creativity isn’t the animation industry’s only saving grace. It’s also incredibly resilient.
Animation is way more flexible than live-action content
Animation production is difficult, if not impossible, to kill. Just look at 2020. When the pandemic shut down Hollywood, animation services barely took a hit and kept chugging along. Because unlike live-action content, animation is not tied to on-set locations and shooting schedules. It can happen virtually anywhere and everywhere. As long as we’ve got an internet connection and a creative spark within us, we have a way to create content that sells. Production can happen across continents taking advantage of cost arbitrage. And make no mistake — good content, with a good story at its core, made at reasonable cost always sells. That’s why we can look forward to a glass-half-full future, no matter what’s happening with the economy.
The outlook is good for animators
As recently as 2021, the outlook was favorable for animators. The US Bureau of Labor Statistics forecasted a 16% job growth rate in the industry over the next decade — a figure that’s well above average. So, as the economy hits the inevitable bumps in the road, as animators, we’re strapped in for whatever comes our way. Here’s to the journey ahead, fellow travelers. Let’s cross the threshold and keep creating awesome content.
Slaymation is an animation studio bringing together pot stirrers, image conjurers, story spinners, and other masters of content creation from around the world. An army of digital artists at your service.
[Sources:]
https://www.bls.gov/ooh/arts-and-design/multimedia-artists-and-animators.htm
https://cravefx.com/blog/thriving-amid-a-crisis-why-animation-is-doing-so-well/