Do you want to start an animation studio business and you want to know the cost? If YES, here is an estimated cost breakdown to open an animation studio. An animation studio is a company that is involved in the production of animated media. Such companies conceive of products to produce, own the physical equipment for production, employ operators for that equipment, and hold a major stake in the sale or rental of their animation works.

This type of business is not capital intensive and you can start the business from your savings and from your home office. If you are hardworking and you have the right network in place, you can generate your start-up capital from one business deal. One good thing about this type of business is that you can combine it with other businesses without over-working yourself.

Starting up a big-time animation studio business may not only require pretty huge startup capital, it also needs significant investment capital, solid planning, and attention to detail in order to keep your business profitable. If you are diligent enough and if you have good business/marketing strategies, you can build the business from scratch to profitability within record time.

The Estimated Cost to Open an Animation Studio

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business or if you choose to purchase fairly used equipment or brand new equipment.

The tools and equipment that will be used are nearly the same cost everywhere, and any differences in price would be minimal and can be overlooked. As for the detailed cost analysis for starting an animation studio business; it might differ in other countries due to the value of their money.

These are the key areas where you are expected to spend your startup capital on;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (animation software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the animation studio in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring a business consultant including writing a business plan – $2,500.
  • The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for renting or leasing an office facility (studio facility) and that can accommodate the number of customers per time (Re – construction of the facility inclusive) will cost – $80,000.
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500) and phone and utility deposits ($2,800).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for start-up inventory (stocking with a wide range of drinks and food) – $15,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $4,750
  • The cost of purchase and installation of CCTVs: $2,000
  • Equipping the animation studio (different sizes and types of computers (desktop and laptops and pads), Wacom Intuos Draw, Huion OSU Tablet, XP-Pen Artist Pro Tablet, Animator, Internet Server, Flat Screen TVs, sound system, DVD players, Satellite dish and decoder, furniture (table, stools and sofas), telephones, filing cabinets) will cost – $80,000
  • The cost of launching a website: $600
  • Miscellaneous: $2,000

From the rough estimate as listed above, you would need a minimum of two hundred and ninety – eight thousand nine hundred USD ($298,900) to establish a medium – scale but standard animation studio business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in opening an animation studio to go to the market or directly contact wholesalers and suppliers of the types of computers (desktop and laptops and pads), Wacom Intuos Draw, Huion OSU Tablet, XP-Pen Artist Pro Tablet, Animator, and related gadgets they want to have in their animation studio in order to get the real time prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.

Frequently Asked Questions

  1. What Does An Animation Studio Do?

An animation studio is a company that is involved in the production of animated media. The wide-ranging of such companies conceive of products to produce, own the physical equipment for production, employ operators for that equipment, and hold a major stake in the sales or rentals of their animation works.

  1. How Do You Start An Animation Studio Business?
  • Get the required trainings and experience
  • Choose a name and register the business
  • Draft a detailed Business Plan and market strategy
  • Secure the needed licenses and permits
  • Apply for an EIN (Employer Identification Number)/Federal Tax ID Number.
  • Open a corporate bank account
  • Get the needed insurance covers
  • Get the needed software apps
  • Lease, furnish and equip your animation studio
  • Hire employees
  • Promote and Market your Business
  1. Opening An Animation Creative Studio, Where Do You Start?

You start but acquiring and honing your skills.

  1. How Much Do Animation Studios Make?

Animators in the bottom 10 percent get under $38,520 a year, and the top 10 percent get higher than $115,960 a year. Animators working for the motion picture industry average $75,630 a year, while those working for computer systems design companies earn a slightly lower $73,800 annually on average.

  1. What Type Of People Are Needed To Run An Animation Studio?

The type of people needed to run an animation studio are people who are creative, people who can work with little or no supervision and of course, people who can work for long periods of time at a stretch and can pay attention to details.

  1. How Much Does It Cost To Start An Animation Studio?

You would need a minimum of two hundred and ninety – eight thousand nine hundred USD ($298,900) to establish a medium – scale but standard animation studio business in any city in the United States of America.

  1. How Do You Go From Freelance To Animation Studio?

You can go from freelance to owning an animation studio by saving from whatever you earn and if it is not enough, you can access loan from your family and friends to establish your own animation studio.

  1. How Do You Make An Animation Project?

You can make your own animation project by following these steps;

Step 1: Write a stellar video script.

Step 2: Create a Storyboard for your animation video.

Step 3: Choose your animation video style.

Step 4: Animate your video.

Step 5: Add a suitable background music.

Step 6: Narrate Your Story.

  1. How Much Does A 1 Minute Animation Cost?

As a new animation studio, you could expect charges anywhere from $100 to $200 per one minute of animation. Multiple factors affect the overall price of an animation project, however, just be mindful of the complexity of your animation as that will ultimately determine the cost.

  1. How Do Animation Studios Make Money?

Animation studios make money by offering the following service;

  • Post processing animation video content
  • Audio editing (adding looping and sound effects)
  • Adding closed captioning, subtitles or dubbing
  • Creating and inserting graphics, animation or special effects
  • Formatting animation content for various media
  • Receiving and incorporating feedback from test audiences
  • Promotional activities
  • Operating animation film libraries (preserving and storing finished videos and stock footage)
  1. How Do Animations Get Clients?

These are some of the marketing ideas and strategies you can adopt to get clients for your animation studio business;

  • Introduce your animation studio by sending introductory letters alongside your brochure to television stations/media houses and branding and advertising agencies both offline and online
  • Advertise on the internet on blogs and forums and also on social media like Twitter, Facebook, YouTube, LinkedIn and Instagram
  • Print out fliers and business cards and strategically drop them in offices, schools, sport facilities, libraries, public facilities and train stations et al.
  • Make use of attractive hand bills to create awareness and also to give direction to your studio facility
  • Create a basic website for your business so as to give your business an online presence
  • Directly market your products.
  • Join local animation, graphics and video production associations business associations for industry trends and tips
  • Provide discount days for your customers
  • Advertise our business in community based newspapers, local TV and radio stations
  • List your business on yellow pages ads (local directories)
  • Encourage the use of word of mouth marketing (referrals)
  1. How Can You Start Your Own Animated Movie Studio Like Disney And Pixar?
  • Get the required trainings and experience
  • Choose a name and register the business
  • Draft a detailed Business Plan and market strategy
  • Secure the needed licenses and permits
  • Apply for an EIN (Employer Identification Number)/Federal Tax ID Number.
  • Open a corporate bank account
  • Get the needed insurance covers
  • Get the needed software apps
  • Lease, furnish and equip your animation studio
  • Hire employees
  • Promote and Market your Business
  1. How Much Do Animators Charge?

Animators bill their services to clients on a fee-per-second basis. Fees vary widely by industry, size of client, type of animation and experience. For two dimensional animation, the advertising industry pays $300-$2,000 per second, while corporate animation pays $150-$2,500 per second.

  1. Can A Business Person Start An Animation Studio Without Having Experience In Animation?

Yes, a business person can start an animation studio without having experience in animation, but the person must be ready to employ a core professional that has the required skills and experience to run the studio.

  1. What Are The Steps In The Animation Production Pipeline?

The animation production pipeline continues the process with 3D modeling, surfacing, rigging, character effects, matte painting, lighting, and rendering. With the progression of these steps, animation will move from production to post-production.

  1. How Do You Become A Self Taught Animator?

You can become a self taught animator by watching and learning from related YouTube videos and eBook et al. Please note that you must be ready to practice and practice till you become a pro.

  1. What Are The Steps For An Animated Project To Go From Concept To Finished Product?

Step 1: Gathering information

Step 2: Concept & Script

Step 3: Voiceover recording

Step 4: Storyboard

Step 5: Visual style

Step 6: Animation

Step 7: Music

  1. Is Animation A Good Career?

A career in animation is indeed a good career and of course, one of the most lucrative and most-sought-after courses these days. With attractive salaries and the personal freedom, it offers, a career in animation could be the right choice for you. Both movies, video games, and other forms of media use computer animation.

  1. Which Country Is Best For Animation Jobs?

These are the Top Worldwide Cities for Animation Jobs;

  • Madrid – Spain
  • Tokyo – Japan
  • Paris – France
  • Seoul – South Korea
  • Reykjavik – Iceland
  • Shanghai – China
  • Stockholm – Sweden
  • Hamburg – Germany
  • Bangalore – India
  • Istanbul – Turkey
  1. Do Anime Studios Make Money?

A BLS data lists show that the 2017 median pay for animators at $70,530 a year. Glassdoor has the national average a bit higher at $74,000. Like many other fields, compensation for animators also depends on experience: it’s not uncommon for senior-level animators or art directors to earn well into six figures.

  1. Can Animation Be Self Taught?

Yes, animation can be self taught but you must be ready to work hard to achieve your goal of wanting to learn animation.

  1. How Much Initial Capital Investment Would I Require To Start A 3D Animation Studio?

The initial capital investment that you would need to start a 3D animation studio is dependent on the amount you are willing to invest in the business. But on the average, you would need anything from $100,000 to get started.

  1. How Hard Is It To Get A Job In Animation?

I would say it is fairly hard to break into the animation market space as a pro, but once you are in, as long as you can play nice with others, you are ‘in’.

  1. How Much Do Animators Charge Per Hour?

The master collective bargaining agreement sets a minimum hourly wage for animators at $38.37 per hour, or $1,534.80 per week, as of publication. The minimum hourly wage for experienced journeyman animators is set at $40.71 per hour, translating to $1,628.40 per week.

  1. How Many Animators Work On A Show?

Around 20 key animators can be working on a single episode of anime, each in charge of a separate part (sometimes several cuts).

  1. How Much Money Is Required To Open A Small Animation Studio?

The amount to open a small scale animation studio is relative, but on the average, with less than $50,000, you can open a small scale but standard animation studio.

  1. How Do Animation Students Find Internships And Temporary Placements In The Industry?

They go online, search for animation studios, get their contact and then send in their applications.

  1. Can You Be An Animator If You Can’t Draw?

While you may not be the best traditional artist, you can still create excellent animations. There are many professional 3D animators that can create amazing animations without drawing.

  1. How Many Drawings Does An Animated Movie Have?

Moving characters are often shot “on twos”, that is to say, one drawing is shown for every two frames of film (which usually runs at 24 frames per second), meaning there are only 12 drawings per second.

  1. How Many Hours Do Animators Work?

Staff animators work a regular 40-hour workweek but may occasionally be expected to work evenings and weekends to meet deadlines.

  1. Is Animation A Stable Career?

Yes. Employment of multimedia artists and animators is projected to grow 8 percent from 2016 to 2026.

  1. What Is The Salary Of VFX Artist?

The average salary for a VFX Artist is $67095.

  1. Do YouTube Animators Make Money?

Animator salaries at YouTube can range from $15,050-$16,345.

  1. Do Animators Get Paid Well?

Sure, animators get paid well. As a matter of fact, Animation is one of the most exciting career fields in the art and design industry. It also offers one of the highest salaries. Animators earned a median annual wage of $63,970 in 2015, with top earners averaging more than $113,600.

  1. How Much Money Do Tv Channels Pay For A Cartoon Series?

The average cartoon TV show costs around $100k per episode. This is 2d animation, middle to high quality, produced in the US, possibly animated in the US and/or Korea and other countries.

  1. How Long Does It Take To Create An Excellent 3D Animated Video?

A 3 – 4 minute quality 3D animation could take 5 – 6 weeks to complete for a very versatile, experienced, animator, on a very simple animation.

  1. Are Animators In High Demand?

Yes.

  1. Why Is Animation So Expensive?

Animated movies are very expensive to make because the cost of all the machines and software add up to a lot. Animated films are also known to pay a very good amount of money to all the artists involved.

  1. Is It Bad To Like Anime?

No, liking anime isn’t really bad. It’s just like any other hobby, or interest.

  1. How Much Do Animated TV Shows Make?

They get $5,000 to $15,000 more or less per 30 second spot. The Simpsons get a higher budget as they are prime time and can get $200,000 to $500,000 or more per commercial because of the amount of viewers.

  1. Where Are The Top Cities for Animator Careers In The United States of America?
  • New York, NY.
  • Los Angeles, CA.
  • Chicago, IL.
  • San Francisco, CA.
  • Seattle, WA.
  • Boston, MA.
  • Austin, TX.
  • Portland, OR.
  1. How Much Does A 2 Minute Animation Cost?

Those studios would charge you from $100 to $200 per one minute of animation, depending on what type of animation you are looking for. There are many factors affecting the overall price of an animation project, however, just keep in mind that the more complex a video is, the pricier it gets.

  1. How Much Does It Cost To Be An Animator?

Most bachelor’s degree programs in Computer Animation cost between $10,000 to $40,000 per year. For admission to a master’s level program, prospective students are typically expected to have completed a bachelor’s degree with at least a 3.0 undergraduate GPA.

  1. How Much Does A 10 Minute Animation Cost?

If you want TV quality work, you are looking at costs starting around 25,000 for 10 minutes at a minimum.

  1. Which Is Harder 2D Or 3D Animation?

Of course, 2D computer animation easier than 3D animation. 2D is much more simple technically, so it’s a lot easier to learn, but it still takes just as much, and often more, time to do than 3D.

  1. What Qualifications Do I Need To Be An Animator?

An HND (higher national diploma) or degree in a relevant subject such as film, television, photography, illustration, 3D/graphic design or computer/computer-aided engineering will prepare you for entry into the profession. A postgraduate qualification in animation will also be advantageous.