In the past 5/6 years, several smaller animation studios have been set up in Ireland, most of them around Dublin. Among them are Rocket, Brown Bag, Monster Animations and Terraglyph, who are currently working on the feature 'Carnival'. These smaller studios produce everything from children's animation to CD-ROM games and computer animated programmes. This coincides with the evolution of online animation shows on websites.

As a result of the influx of American animators in the 80's, the Irish animation industry has suffered from an overwhelming American influence. This was particularly evident in 'All Dogs go to Heaven', which despite being produced, created and funded in Ireland lacked any sense of 'Irishness'. However, the flip side of this is that the animation industry would not exist in Ireland without the American presence; the animation courses themselves have evolved from employment opportunities offered by these studios, as have supporting industries such as sound recording and digital effects studios.