“Does it make sense to open a studio for animation (important in creation of a 3D configurator) in 2017?” In the following article we would like to take a closer look at the possible opportunities and risks faced by founders.

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What is a studio for animations?

It`s not that easy to define an animation studio today. Today, an animation studio is not just a group of artists working together on projects of a certain duration. Modern technology makes it possible to be a one-man studio and operate in a virtual studio environment thousands of miles away from colleagues.

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Is it (still) worth setting up a traditional animation studio in a conventional office where several animators work? Is this still a realistic goal or can it be assumed that the animation studio will close down in the near future for cost reasons?

This question is certainly not easy to answer. Nevertheless, it certainly has a number of advantages to have all actors in one place.

Can the costs for the studio be significant for the success of the foundation? Yes! But that doesn`t means that they are insurmountable. In reality they are not more expensive than for any other office. In some regions, cheap rental space will certainly still be to be found.

Are animation studios still viable in the internet age?

No question – the internet has a strong influence in the animation industry. There is a strong belief in the industry that an investment in an animation studio will not pay off.

Productions are still the primary source of income for any animation studio. A must today is the development of multiple animations at the same time and thus the generation of relatively constant revenues over a longer period of time. Under these conditions, an animation studio will still be viable today.

Why start small?

Everyone starts a studio with big ambitions. A good example is Disney, who knew early on how big his animation studio would become. He started with just a handful of people producing animations at a rapid pace and barely breaking even.

The story is littered with many examples of studios that initially performed big and failed completely, Don Bluth, for example, left Disney and started developing his own animations. He finally failed. DreamWorks almost suffered a similar fate. Almost identical productions to the work of Jeffrey Katzenberg at Disney almost brought the studio to a collapse before it made a breakthrough with Shrek, a cheap movie that made a lot of money.

Every new startup studio hast to start small. Is it still possible to be successful today? It would certainly be a long and difficult road, but the concept is possible with the right tools and employees.

In the beginning, the development of short films is certainly a good way to grow with the audience. At least one hit should initially be enough to keep the business financially viable. Once this goal has been achieved, work can continue successively on optimizing content and minimizing costs.

Will feature film productions remain the ultimate goal of an animation studio?

For a long time, feature film productions have remained a target for animation studios because they promise the largest revenue stream, but also involve significant effort. The development of short films and television series is another field with less glamour and potential revenue.

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New Studios have to find a way to produce high quality and economical films. If the revenues from other business areas are stable, this should not be a problem, but it would be unwise to rely on a large production.

Will someone ever be able to top Disney?

Someday someone will find a way and make it safely. Pixar almost made it, but they got bought up. With a few films, they could have easily overthrown Walt Disney`s studio.