Mexican Animation Crisis; Netflix’s AI Surge; 'Avatar's' Two Token Theaters Mexican Animation Crisis; Netflix’s AI Surge; 'Avatar's' Two Token Theaters

Ánima Estudios, one of Mexico’s largest and most consequential animation companies, has paused production amid a corporate restructuring, layoffs, and allegations of unpaid wages. Whatever ultimately comes of the restructuring, the crisis at a studio that helped build Mexico’s modern animation industry is monumental news for Mexico and Latin America.

In the U.S., Netflix revealed that generative AI workflows were used on nearly 300 titles during the first half of 2026, while the Spanish government continued investing directly in animation with another $7.4 million for Canary Islands producer Amuse Animation, having already sent almost $30 million to recent DNEG acquisition Anima Kitchent.

On the franchise front, Alvin and the Chipmunks are being reimagined as digital-first influencers ahead of a planned 2028 feature; Gábor Csupó uploaded a proposed opening for a Duckman revival that turned heads and stomachs; Paramount unveiled a token two-theater release for Avatar Aang: The Last Airbender and a live concert tour for The Legend of Korra; and GKIDS debuted a new trailer for Cocoon – One Summer of Girlhood, Yukimitsu Ina’s adaptation of Machiko Kyo’s wartime manga.

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Jamie Lang

Jamie Lang is the Publisher and Editor-in-Chief of Cartoon Brew.

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