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The Impact of Streaming Services on the Animation Industry

The Impact of Streaming Services on the Animation Industry

When Netflix launched its streaming service in 2007, it was among the first of its kind — offering about 1,000 different titles for on-demand streaming. Fast-forward 16 years later, and the same streaming service offers more than 6,600 titles in its United States catalog alone.

This surge in digital media content perfectly exemplifies the animation industry as a whole since streaming services first became popular in the early 2010s. Today, digital content consumption is through the roof — and with several major online streaming platforms available, it’s becoming easier to see the true impact of streaming services on the animation industry as a whole.

If you’re thinking about getting into animation as a career, you’ll want to understand how streaming services’ growth and changing media consumption patterns are influencing animation industry trends. From there, you can be better prepared for the future of the animation industry and enter the field with confidence.

The Rise of Streaming Services in the Animation Industry

While it may be difficult to imagine a time before streaming, in the grand scheme of digital media history, this is still a relatively new technology. Still, in this short period of time, streaming services have drastically changed the way people access and consume content.

How Streaming Services Have Changed Content Distribution

Due to the direct-to-consumer model of streaming services, platforms like Netflix and Hulu have made it possible for consumers to access media on demand at any time and just about anywhere. Rather than having to be in front of the television at a specific date and time to watch a show, streaming customers can watch (and “binge-watch”) at their own convenience. And because streaming platforms are accessible on mobile devices, this has opened up a whole new world for consumers to access their favorite content on the go.

Increased Demand for Animated Content

The increase in streaming services has also accompanied a rising demand for animated content. As animation and streaming technology has advanced, it has in turn become easier for animators to create and distribute content than ever before. This, in addition to greater access to internet connectivity around the globe, has led consumers to demand more animated content across different age groups and demographics.

New Opportunities for Animators

With more streaming customers seeking out animated content, new digital media opportunities have presented themselves — especially for knowledgeable and skilled animation professionals. This includes a notable increase in job opportunities as well as the potential for greater freedom of expression in the workplace.

A Surge in Job Opportunities

As streaming services look to produce their own exclusive animation content in order to meet consumer demand, the need for animators is expected to increase. In fact, according to data from the United States Bureau of Labor Statistics (BLS), the demand for special effects artists and animators is projected to grow 4% between 2023 and 2033 alone, with about 6,700 job openings expected each year.

The Freedom for Creative Experimentation

While streaming services compete to put out the next big animated series, these platforms are also hiring animators and special effects artists with an elevated sense of creative freedom and autonomy than ever. Some of the most popular and successful animated series of all time have been born out of total creative freedom (including such long standing series as “Family Guy” and “The Simpsons”), and streaming platforms are taking notes from these past successes.

Challenges and Pressures on the Animation Industry

As the world of online content production and animation evolves, the industry has seen some remarkable opportunities for growth. However, these changes have not come without some inherent challenges and obstacles, particularly as they relate to high content turnover, shorter production cycles, and market saturation.

High Content Turnover and Shorter Production Cycles

First, it’s important for aspiring animators to understand that with more animated shows being made, there is also the potential for higher turnover. This may be especially true of smaller shows with limited budgets. Additionally, with the increasing demand for animated content on streaming services, animation teams are often facing shorter production cycles that can be stressful. In some cases, teams may have just a few weeks to put out a new episode from start to finish.

Saturation of the Animation Market

Likewise, it makes sense that over-saturation of the market is a potential challenge when considering how many different streaming services are now striving to release their own exclusive animated content. With so much new content being released across numerous different platforms, there is an inherent risk that new releases will have a hard time standing out from other series.

Globalization and the Spread of Diverse Animation Styles

Streaming services have made content more accessible from nearly anywhere in the world. In turn, the animation industry has also seen a spread of more diverse animation styles.

International Collaborations and Distribution

Before the rise of streaming services, the animation market was largely dominated by American animation studies, such as Walt Disney and Warner Brothers. However, with the widespread availability of streaming services, the industry has experienced some major shifts, particularly with the rise of non-Western animation trends like anime and Bollywood animated movies.

Cultural Exchange Through Animated Storytelling

Meanwhile, western animation studios have also begun working more diligently to ensure that different cultures are properly represented in their work. Pixar’s “Coco,” for example, strives to pay homage to Mexican culture through its depiction of the Día de los Muertos holiday.

Streaming Services and Audience Engagement

As streaming services continue to put out new animated content, they face distinct challenges and opportunities when it comes to keeping audiences engaged and coming back for more.

Customizing Animation for Niche Audiences

Because streaming services can put out content faster and more easily than ever before, they are able to customize their content for highly specific audiences. A quick search on Netflix shows content in niche areas such as:

  • Cartoons for children
  • Anime
  • Animated series for adults
  • Animated adventures for teens

Binge-Watching and Its Impact on Animation

Distributing animated content on streaming platforms is much simpler than distributing it on a national television network, which has afforded animators unique opportunities to get their work out there. At the same time, it has also created some unexpected challenges.

Consider, for instance, the rise of binge-watching (watching an entire series in a short timeframe). As opposed to waiting for a show to air on a certain day and time each week, many streaming services will release every episode of a series for the entire season at once. From there, viewers can binge-watch every episode on their own time.

This can be an excellent way to get viewers excited (and talking about) a show, yet it also carries the risk of the series being more-or-less forgotten about until the next season is released — which could be months or even years, depending on production schedules. With this in mind, animators must constantly be thinking ahead as streaming services brainstorm ways to keep viewers engaged between production cycles.

The Future of Animation on Streaming Platforms

As online streaming platforms continue to evolve, so does the inherent role of technology in animation’s growth. This is evident specifically in the expansion of both adult and experimental animation on today’s streaming platforms.

The Role of Technology in Animation’s Evolution

Advancements in animation software and similar technology (including computer-generated imagery and other software tools) are making it easier and faster for animators to do their jobs. The result is that animators are able to shorten production cycles, meaning that more content can be put out into the world in less time to keep up with consumer demand.

Expansion of Adult and Experimental Animation

With this, the animation world has also seen greater experimentation in creating content for different niches. For example, streaming services have experienced a substantial rise in adult animated content in recent years. With some exceptions (such as network shows like “Futurama” and “Bob’s Burgers”), animated cartoons have largely been perceived as content exclusively for younger audiences. Today, however, streaming platform customers are beginning to enjoy animated shows and movies made specifically for them. In fact, Netflix even has its own category dedicated to “Adult Animated Movies and Shows,” with dozens of titles from which to choose.

Elevate Your Education in an Animation Degree Program

We’ve only just begun to witness the notable impact that streaming services will have on the digital media landscape and animation industry trends. Although only time will tell exactly what the future holds for professionals working in digital media and animation, new technologies and emerging digital content trends look promising. If you’re serious about breaking into the animation industry, a quality education is essential. At Rocky Mountain College of Art + Design, our on-campus and online Bachelor of Fine Arts in Animation programs offer a career-focused curriculum that prepares students for the realities of digital transformation in media. From coursework on critical animation skills such as texture mapping, character design, storyboarding and more, you’ll be ready to put your best foot forward in this dynamic industry. Get in touch to learn more about this degree program for yourself, or begin your online application for admission today.

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