There is an aspect of animation that I haven’t heard folks talk about, and that is bidding. Bidding is when clients have an idea they want animated so they shop around various studios and get their asking prices before making a decision.
Here’s the problem with that:
Let’s say we have a company named Poob. Poob is a big name with lots of hype and attention around their products. For their latest release, Poob is looking for a 1.5 minute trailer done with 2D animation.
Studio A comes in and offers $150000 USD for the job. They have a lot of experience with beautifully animated trailers and this amount would not only cover basic needs for the artists, but allow them to put some money aside.
Studio B then comes in and offers $100000 USD. They had a good track record and this amount would still cover the basic needs for their artists (plus they need the work).
Then comes Studio C. Studio C is an up and coming studio who wants to flesh out their portfolio. They bid $85000 USD. This doesn’t cover the basic needs for the artists. Studio C is hoping that by making an impressive trailer, they will wow Poob so that the next time Poob is looking for work, Studio C can ask something closer to Studio B.
The problem? Poob doesn’t care about quality, they care about price. Poob picks Studio C and get back some of the most beautiful animation they’ve ever seen. For cheap. This is an added bonus for Poob and shows that they can ask for little and get a lot in return.
Later on, Poob comes back with another project, and Studio C bids for a higher price. Unfortunately, there’s a Studio D that has come in and bid for something lower. Poob, again, only cares about money. Poob goes with Studio D, leaving C without work.
This process happens again and again, keeping prices low for companies and wages even lower for the animation studios.
What can we do about this?
Well, as far as I know, only one boutique studio is unionized, and that’s just in the US. Boutique is the part of a studio where they handle short term projects, such as trailers, ads, and pitches. Usually, animation studios have their tv/theatrical departments separate from boutique since they have different timelines and needs.
On top of that, there are countless boutique studios around the world, many vying for the same jobs. Unless everyone suddenly agrees to do better across the board, you end up having to rely on stuff like federal funding and tax write offs to entice companies to pick your studio that’s asking for a higher price… Or just pick you in general. There are many videos about that as it affects all areas of the entertainment industry.
So that’s bidding and all your favorite studios participate in it. Just about every boutique studio does. It’s part of the system, and I hate it so so much.