Disney Moving Away From Walt’s Vision Is Crushing a Once-Thriving California Industry

In 1923, a 21-year-old Walt Disney moved to Hollywood to start his animation studio. He chose the West Coast over the capital of animation, New York City, because his brother, Roy, was in Los Angeles recovering from tuberculosis.

By 1926, Walt had hired legendary animator Ub Iwerks and opened the Walt Disney Studio. For decades, Walt and his studio pumped out animated hits, re-inventing animation and helping to establish California as the new capital of filmmaking.

But that was then, and this is now. With other countries and some states offering lucrative tax breaks, Disney has moved most of its animation production outside of California, which has cost the state dearly.

According to a new report titled “Reclaiming California’s Role in Global Animation,” the state is missing out on hundreds of millions of dollars by not offering competitive tax incentives, especially when it loses major Disney productions.

Moana (2016) was made in California, but Moana 2 (2024) was filmed in Canada. The loss of that film cost California 817 jobs, $87 million in employee earnings, and $178 million to the state’s gross domestic product.

The report argues that without these incentives, the state’s animation industry could “collapse.” Animation Guild president Jeanette Moreno said:

Behind every animated show or movie are thousands of artists, writers, and technicians who make the magic happen — and they’re being left behind. Our members are ready to work, but without competitive tax incentives, those jobs are going elsewhere. This report shows just how urgently California needs to act to protect its animation workforce and remain a global leader.

The state is losing not only animator jobs but also pre- and post-production jobs, which is helping to expedite the industry’s collapse in the state. Those jobs are being shipped overseas to be done by much cheaper workers.

State lawmakers are working on a tax package that would provide better incentives for animated filmmakers, but that does not necessarily mean those jobs will immediately return to the state. If companies can find cheaper workers elsewhere, the incentives may not be enough to bring them back to California.

Last week, President Donald Trump announced he was considering a 100 percent tariff on films made outside the United States. However, that plan is short on details, and animators need some immediate action.

So, the industry that Walt Disney started in California 100 years ago may soon disappear, partly due to the company that bears his name.