ON Animation Studios is shutting down

The service company behind “Mune: Guardian of the Moon”,The Little Prince,” “Playmobil the Movie” and “Ladybug & Cat Noir: The Movie” is closing, after joining other Quebec studios in warning that a change in the province’s tax animation credit would hurt business.

Mediawan-owned ON Animation Studios,announced via its LinkedIn page that it is shutting up shop after 10 years.

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.

Though we cannot name each person who played a vital role in making this adventure possible, you know who you are, and for that, we thank you from the heart.

We leave behind a testament to our work and the promise that we still want to do more.

Keep on keeping on.

ON Animation Studios was also one of the several companies that was able to tap into Quebec’s attractive tax rebate which turned the region into a hotbed for animation and drew Hollywood and European productions. But that all changed when Quebec’s conservative government restricted the province’s tax scheme with a 65% cap on eligible expenses for international films which resulted in a 28% cut in tax credits, as of May 2024.

ON’s closure is the latest blow to Quebec’s already reeling animation industry,including the fellow Montreal studios Mikros and MPC could be shutting down as part of Technicolor’s collapse.