Two weeks ago, Zach Mulligan, an animation industry professional who has worked at DreamWorks Animation, Scanline VFX and The Jim Henson Company, decided to share what he thought
was wrong with the animation business in 2024. In a well-edited and concisely presented video, Mulligan pointed out five overall reasons why the animation animation industry in Los Angeles seems to be going through such a tumultuous period. He mentions the burst of the streaming bubble, layoffs, mergers, outsourcing and the specter of generative A.I. as some of the reasons behind why many animation professionals are having a hard time getting their projects made in recent months. Zach was kind enough to answer a few of our questions about his “Animation Industry is Collapsing” video and he shared some of his insights with us:
Animag: First up, congrats on the success of your video. You have had over 115,000 views since you posted it two weeks ago. What prompted you to make it?
Zach Mulligan: First of all, I’ve always loved animation. I grew up watching Disney movies repeatedly on my VCR, and discovered early on how to make my own 3D animations. Working in this industry since 2015 has been a dream come true. Recently though, I noticed some significant shifts within the animation industry, many of which weren’t getting the attention they deserved outside our relatively small community. It took several months to write the script for this video and compile many of the different articles that I cited, during which I also reached out to The Animation Guild for further clarification on how they plan to handle the upcoming negotiations this summer. I wanted to make sure that this video reached more people outside of our industry, so I purposefully used a provocative title & thumbnail that I knew would spark a much-needed conversation about the future of our industry.
In your opinion, what are the most important factors that have caused the current climate in the animation industry?
The significant layoffs in the animation industry, primarily in the US but also affecting countries like Canada, seem to stem from a few key factors: increased outsourcing, corporate mergers, and the burst of the streaming bubble. Additionally, many industry professionals I spoke with believe that the way studios handle Generative AI will lead to further job losses. While there are certainly other factors at play, as highlighted by many others since my video was published, sparking these conversations was precisely my goal.
What is your take on the impact of AI on the animation industry?
The way I see it, there are actually two conversations happening simultaneously about AI, and it’s important that we make the distinction between them: whether AI is a tool, and how AI will affect jobs right now. Machine learning has been used effectively as a tool to reduce tedious tasks, such as adding linework for Across the Spider-Verse or even to help color the character’s eyes blue for the VFX in Dune: Part Two. We should continue to have the debate on how to approach the use of AI ethically like in these examples.
That being said, the question about how AI will affect jobs today is the more pressing issue. I’m concerned that the leaders of some of these studios have a fundamental misunderstanding of what “AI” even is. Yet they are starting to make decisions which will result in layoffs of experienced artists in favor of cheaper, less experienced workers using “AI.” The debate about AI’s future potential & ethical concerns is absolutely essential, but its current impact on jobs needs our immediate attention.
What are some of the practical way we can all fight these negative forces? Can we even do anything about it or is resistance futile?
Right now, our best bet is to stay informed and communicate with each other, especially with the upcoming union negotiations this summer. That’s why I made this video – to keep the conversation alive and prevent any complacency regarding the industry’s direction. Regarding Generative AI, in my opinion an artist’s best defense against it is to learn everything they can about it, including its many limitations. As Niko Pueringer of Corridor Digital explains on “The Bancroft Brothers Animation Podcast” (a must-listen episode for anyone curious about AI as it relates to animation), experimenting with AI tools themselves can often demystify what these tools can & cannot do. For example, the viral AI short film “Air Head” by the Toronto studio shy kids used OpenAI’s Sora model extensively to get the base output, but had to manually tweak the footage with VFX to get it perfect. We’re still in the early days of AI; the better informed we are as artists, the more productive our discussions will be about how & when it’s used.
How has this current broken climate impacted you personally or the people you know in your circle?
The current climate has profoundly affected many people I know, with numerous colleagues being laid off or given end dates over the past year. Particularly at DreamWorks Animation, a place I worked for four years, where the company’s recent decision to outsource nearly half of its feature film production has resulted in significant cuts to various departments. This isn’t an isolated issue; thousands of workers across our industry have faced similar fates due to the factors I’ve outlined. Even Pixar recently laid off 14% of its workforce (although their top leadership roles will not be impacted). Understandably, it’s difficult to stay optimistic about our industry when it directly affects people we know personally.
Do you see any silver linings?
Despite the bleak outlook suggested by the title of my video, there are a lot of things to be excited about on the horizon. The incoming wave of indie studios & auteurs is particularly exciting. If you can get a group of talented artist friends together, the sky’s the limit. Some notable examples range from seasoned Disney veteran Aaron Blaise’s Snow Bear, to relative newcomers like Studio Flimpo’s viral series in-progress, Mandelbrot Hall. The explosive rise of successful animated series on YouTube, such as those from Glitch Productions, is also an important development that cannot be overlooked. The democratization of creative tools is fostering a new wave of artistry & creativity. Additionally, the upcoming negotiations between IATSE and the AMPTP present an opportunity for systemic changes, including better working conditions and basic protections from AI.
Tell us a bit about the reactions you have received from your popular video?
To be honest, it’s been pretty surprising. Much of what I discussed in the video has been covered in various articles for months, but presenting all these issues in one video has clearly struck a chord with people both inside and outside our industry. Many of my colleagues in animation have validated how I feel about the industry, while a vocal minority have taken issue with the TikTok style of editing I used, as well as calling me alarmist. Based on my experience with creating viral videos, however, being a little provocative is essential to reaching a wide audience with this message. I’ve been encouraged by the positive feedback though, and I hope it continues to foster meaningful dialogue and potential solutions.
What projects are you working on at the moment?
Currently I’m developing an animated short for VR titled New Venice, a black & white love story between two robots in an empty, snowy metropolis. My philosophy on VR is that it can become the next frontier for storytelling in animation, and I wanted to create something different than all the Metaverse & social-focused uses for VR. We’re tapping into the early days of cinema for inspiration on how to progress this new medium, including an art direction inspired more from Art Deco rather than cyberpunk. Additionally, because of the response to this video, I’m starting to develop a follow-up video that expands upon some of the positive ways the animation industry is evolving. I’m aiming to feature different voices in our industry to show that if you’re struggling right now, you’re not alone and that it’s not completely hopeless.
Any advice for frustrated animation talent out there who are losing hope about working in our favorite industry/art form?
I understand the pain that many are feeling right now. It’s frustrating to see talented and experienced workers being left behind as the industry moves forward. While I recognize that my decade of experience in animation might seem relatively young to some, I believe that fresh perspectives are also valuable. I highly encourage everyone to keep learning new skills and tools. There’s a great video by artist Meridian Grey Culpepper titled “Surviving Unemployment in the Animation Industry” that I highly recommend for some empathy and practical solutions during this downturn. Starting personal animation projects can help you rediscover your passion for the industry. Share your work and portfolio online, even works-in-progress, because you never know who might see it. Most importantly, check in with your peers and colleagues—we’re all human, and fostering communication is key during these challenging times.
You can watch Zach’s video below:
