The Studio Behind ‘Ladybug & Cat Noir: The Movie,’ Mediawan’s ON Animation, Shuts Down
Montreal’s ON Animation Studios, known for working on films like “Playmobil: The Movie,” “The Little Prince,” and “Ladybug & Cat Noir: The Movie,” has shut down. The announcement came through a LinkedIn post, with the company citing industry changes as the reason for ceasing operations.
“Amid the changes in our industry, ON Animation Studios is ceasing its activities,” the company stated. “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.”
The closure was not entirely unexpected. The animation and VFX industry in Quebec has been struggling, with significant job losses in the past year. In September, the Quebec Film and Television Council reported that more than half of the province’s 8,000 animation and VFX workers had lost their jobs.
One of the key factors behind this downturn is the Quebec government’s decision to cap its animation and VFX tax credit at 65%, a change that took effect in May 2024. Before this, studios could claim full coverage on eligible labor costs, which had made the region attractive for international productions.
ON Animation was among more than 20 Quebec-based studios that previously signed a statement warning that the tax credit cap would severely impact revenue and competitiveness. The closure of ON Animation is now another blow to an already struggling industry.
In addition to tax credit reductions, new Canadian regulations restricting the employment of Temporary Foreign Workers (TFW) have made it harder for studios to bring in talent from abroad, another factor that has hit Quebec’s animation and VFX sector hard.
The studio had been in operation since 2016 and, as of early 2023, employed 163 people. However, by this month, only 28 remained, according to LinkedIn data. Before shutting down, the company had been part of Mediawan Kids & Family, a division of the French media group Mediawan. ON Animation was originally launched by producers Aton Soumache and Dimitri Rassam under the ON Entertainment banner and later became a key player in Montreal’s animation scene.
Following the announcement, Thalia Vitaniotis, ON Animation’s head of talent and culture, shared her thoughts on LinkedIn: “ON Animation Studios, you will be greatly missed… Our community is going through a challenging time, but I know that there are better days ahead for us all… the show must go on!”
The closure comes at a time when the industry is facing broader financial instability. Just days before this news, Technicolor—an industry giant in VFX—revealed it was on the brink of collapse, leading to the shutdown of its subsidiaries, including The Mill, MPC Advertising, and Mikros Animation in the U.S.
Despite ON Animation shutting down, Mediawan stated that it will continue producing animated films through its Paris-based divisions, Mediawan Kids & Family and Miraculous Corp. Moving forward, the company plans to work with external animation studios worldwide, selecting collaborators based on funding and available talent for each project.
The ON Animation team ended its LinkedIn post on a hopeful note: “We leave behind a testament to our work and the promise that we still want to do more. Keep on keeping on.”
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