How Is The United States Economic Situation Affecting The Animation Industry?

With the United States economy experiencing a bit of a quandary, many people worry about their careers, their livelihoods, and ultimately what will happen to their jobs. While I try to remain politically neutral on the subject of the economy, I admit a touch of concern where my own work is concerned; animation is primarily an entertainment-based industry with few applications deemed "necessary" by business and personal clients. How a freelance animator copes with a difficult economy depends on how their clients cope, and like many I'm watching my clients to see how their business fares.

There are a number of theories on how the current economic situation will affect the animation industry in the long run, however - theories both positive and negative, affecting both freelance and salaried Flash Animations.

Theory #1: As companies begin to suffer from business slowdowns, they'll throw more money into advertising.

When companies aren't selling enough product, one solution is to spend money to make money - and that means spending money on commercials, print ads, web ads, and just about anything else the creative industry can turn out. That includes animators, both freelance and studio; whether 2D or 3D, there's always a market niche for someone who can add that extra gloss of animated polish to part or all of a commercial.

Theory #2: Business slowdowns will instead cause companies to buckle down, sit on their money, and try to wait things out.

If business owners think that the current situation is stagnating and no amount of advertising will coerce consumers to spend more money, then rather than spend to excess companies will instead begin to trim as many unnecessary expenses as possible. Advertising dollars will grow rather tight, and any in-house studio teams could even lose a job or two as companies downsize to stay within tight budget constraints.

Theory #3: In a sinking economy, many will turn to entertainment as a balm for other troubles.

For some, a trip to the theatre to watch an animated film is the equivalent of 1.75 hours of pixilated, inked-and-painted comfort food. When times are tough, the typical human response is to seek some kind of distraction, something uplifting and fun and light-hearted that, for just a little while, can make one forget their troubles. This can mean job security for studio-employed animators, and even more cash flow for independent animators like Jib-Jab who make a career out of poking fun at current events.

Theory #4: As gas prices rise and paychecks fall, entertainment will be the first luxury to go.

While we often seek distractions from our woes, sometimes we can't always afford said distractions. Rising gas prices are enough to stop some people from making a trip to the theatre or the movie store, meaning there won't be enough bums to fill the seats at the latest major animated feature. Let's not forget that people forced to tighten the belt due to pay cuts or job loss might not be willing to spend anywhere from $20-100 for a family night out at the theatre, complete with exorbitantly priced movie tickets and concessions. This may leave not only animated film studios in the lurch, but many blockbuster production studios.

Have you seen any of these theories in action? How is the economic situation affecting your Flash Animation career?