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DRAWN UP

The Animation Guild ratified its new contract with studios, despite members’ AI concerns

Max Knoblauch

After three months of negotiations, the more than 5,000-member Animation Guild (a Hollywood union representing artists, writers, and other animation workers) has ratified a new contract. But as with so many issues in the industry today, the specter of AI looms.

The three-year deal, which covers animation studios including Netflix, Disney, and Warner Bros. Discovery, will see member wages climb 7% in the first year, followed by smaller additional bumps in the following years.

Still, the deal, which was tentatively struck late last month, doesn’t address AI concerns that some workers view as critical. The lack of AI protections remains a longer-term issue that the industry is still working through: a study released by the guild earlier this year found that around 30% of animation jobs could be disrupted by AI in the next three years.

Earlier this month, some negotiating committee members said they’d vote against the deal, saying it didn’t provide workers with enough protection against AI. For example, the new contract doesn’t allow guild members to opt out of using AI or having their work be used to train AI models.

Just over three quarters of voting members approved the new contract — likely feeling the pressure amid Hollywood’s lengthy labor contraction and an increase in Hollywood animation outsourcing. Its last contract was approved by nearly 90% of members.

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Netflix is staffing up an apparent AI animation studio called INKubator

According to several public job listings, streaming giant Netflix appears to be building a GenAI animation studio called INKubator.

First reported by journalist Janko Roettgers in the Lowpass newsletter, INKubator seems to have launched in March and aims to “develop feature-quality content in a creator-led environment.”

As Lowpass reports, INKubator appears focused on AI-generated short-form animation, but listings imply ambitions toward longer-form content. Netflix didn’t immediately respond to a request for comment.

INKubator wouldn’t be Netflix’s first foray into AI. Back in March, it acquired Ben Affleck’s AI filmmaking startup InterPositive — which trains on individual films’ already-shot footage — for as much as $600 million depending on certain targets.

Netflix’s potential future AI-generated animations could be served to an increasingly ad-packed streaming service. At Netflix’s Upfront presentation on Wednesday, the company said its ad-supported tier has now reached 250 million subscribers globally, up 31% from November.

As Lowpass reports, INKubator appears focused on AI-generated short-form animation, but listings imply ambitions toward longer-form content. Netflix didn’t immediately respond to a request for comment.

INKubator wouldn’t be Netflix’s first foray into AI. Back in March, it acquired Ben Affleck’s AI filmmaking startup InterPositive — which trains on individual films’ already-shot footage — for as much as $600 million depending on certain targets.

Netflix’s potential future AI-generated animations could be served to an increasingly ad-packed streaming service. At Netflix’s Upfront presentation on Wednesday, the company said its ad-supported tier has now reached 250 million subscribers globally, up 31% from November.

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Saleah Blancaflor

Netflix confirms a “KPop Demon Hunters” world concert tour is on the way

Netflix has a “Golden” mine and it's digging deeper.

At its fourth annual TV Upfront presentation on Wednesday, Netflix President of Advertising Amy Reinhard announced a partnership with AEG Presents to create a “KPop Demon Hunters” world tour that will bring the phenomenon to life.

In March, Bloomberg previously reported Netflix was planning a global world tour sometime next year ahead of the sequel in arenas that would hold 10,000 to 20,000 fans, though the news had not been confirmed by the company nor had a partner been in place at the time. 

“KPop Demon Hunters” is Netflix’s most watched film of all time, racking up 481.6 million views globally during the second half of 2025. Since its release, the HUNTR/X trio of Ejae, Audrey Nuna, and Rei Ami has appeared and performed at several major events including late-night talk shows, award ceremonies, and most recently at Coachella, where they were a surprise guest for Katseye. It hasn’t been confirmed whether the trio will be on the tour.

The announcement of the tour comes after Netflix co-CEO Ted Sarandos shared in a recent blog post that the company spent $135 billion on licensing and original film and TV over the last 10 years.

This year, Netflix has a projected content spend of $20 billion, up 10% year over year, while its annual revenue forecast is between $50.7 billion and $51.7 billion. The streaming giant has brought in more than $46 billion in profit over the past decade.

Netflix said more details around cities and tickets for the concert tour are expected to come out later this year.

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