“End of an Era: ON Animation Studios Shuts Down After 10 Years – Here’s Why”
In a bittersweet farewell to the animation world, Montreal-based ON Animation Studios—famed for bringing heartwarming tales like Mune: Guardian of the Moon, The Little Prince, Playmobil: The Movie, and Ladybug & Cat Noir: The Movie to life—has officially announced its closure. The studio, a subsidiary of Mediawan, shared the unfortunate news via its LinkedIn page, marking the end of a decade-long journey in the animation industry.
A Studio That Made Magic Happen
Founded with the dream of crafting animated stories that resonated with audiences worldwide, ON Animation Studios became a key player in the industry, delivering visually stunning and emotionally compelling films. From whimsical fairy tales to high-energy action-packed adventures, the studio’s projects earned a dedicated fan base. However, despite its creative successes, financial and industry-wide challenges have forced the company to shut its doors.
The Tax Credit Blow: A Slow Death for Quebec’s Animation Industry?
The closure of ON Animation Studios comes as no surprise to industry insiders who have been monitoring the troubling shifts in Quebec’s economic landscape. In early 2023, multiple animation and VFX studios, including ON Animation, raised concerns over changes to the government’s tax credit scheme. The reduction in financial support for creative industries placed an immense burden on local studios, which had long relied on these incentives to compete with global markets.
As predicted, the tax cuts had an almost immediate and devastating effect. The region’s once-thriving animation and VFX industry, which boasted around 8,000 jobs at the end of 2022, shrank dramatically, leaving fewer than 5,000 industry professionals employed by the close of 2023.
Adding to the turmoil, the Hollywood writers’ and actors’ guild strikes further stifled production pipelines, compounding the financial strain on animation studios. These dual challenges proved to be insurmountable for ON Animation, leading to the difficult decision to cease operations.
A Heartfelt Goodbye
In its official statement, the studio expressed deep gratitude for the talented artists and passionate storytellers who contributed to its journey:
*“Amid the changes in our industry, ON Animation Studios is ceasing its activities.
It is sad to say goodbye to a team as incredible, talented, and skilled as ours. We will deeply miss the joy and excitement of creating outstanding films alongside such remarkable people and partners.
We are grateful to have had the opportunity to do what we love for so many years while remaining true to ourselves. The way we shared, learned, and grew together, and the respect and care we showed one another, were as essential as the stories we told and the values they embodied.
This is our commitment to a brighter future—not only for the children who cherish our films but for everyone who works in this extraordinary industry, along with their loved ones who have shared in this journey.”*
The emotional farewell acknowledged the countless artists, animators, and storytellers who contributed to the studio’s legacy. While ON Animation Studios may be closing its doors, the impact of its films will continue to inspire audiences for years to come.
What’s Next for the ON Animation Team?
With ON Animation Studios shutting down, many are left wondering about the future of its employees. The talent that fueled the studio’s creative output is likely to be in high demand across the global animation and VFX industry. Montreal remains a hub for animation, with other major studios operating in the region, and it’s expected that many ON Animation professionals will transition into new roles at rival companies or even launch their own independent projects.
As the industry continues to evolve, the loss of a studio like ON Animation serves as a stark reminder of the challenges faced by creative professionals in an era of economic fluctuations and shifting government policies.
The Legacy Lives On
While ON Animation Studios may no longer be an active player in the animation scene, its films will continue to enchant and inspire audiences. The studio’s commitment to storytelling, artistry, and innovation leaves behind a legacy that will not be forgotten.
For fans, fellow animators, and industry professionals, the closure of ON Animation is undoubtedly a sad moment—but it also serves as a rallying call to support and sustain the animation industry through advocacy, funding, and a renewed appreciation for the magic of animated storytelling.
