Disney Reclaims the Spotlight at Annecy 2026: A Deep Dive into ‘Hexed’ and the Surprise Return of ‘Lilo & Stitch’
The Annecy International Animation Film Festival has long served as the global stage for the industry’s most prestigious reveals, and the 2026 edition proved no exception. Walt Disney Animation Studios (WDAS) took center stage this week, delivering a presentation that balanced high-concept original storytelling with a nostalgic return to one of its most beloved franchises.
The studio’s annual showcase provided a comprehensive look at its upcoming feature film, Hexed, but it was the unannounced unveiling of a new theatrical short, Lilo & Scratch, that sent shockwaves through the Bonlieu Scène Nationale. By blending cutting-edge CG pipelines with traditional hand-drawn sensibilities, Disney signaled a strategic pivot toward "hybrid" animation—a move intended to satisfy fans of the studio’s 2D legacy while maintaining the technical polish of modern blockbusters.
Main Facts: The Dual Pillars of Disney’s 2026 Slate
The presentation, led by directors and animators Jason Hand, Fawn Veerasunthorn, and Malcon Pierce, centered on two primary projects that define the studio’s current creative trajectory.
The Surprise: ‘Lilo & Scratch’
In a move that caught many industry analysts off guard, Disney announced Lilo & Scratch, a new 2D/CG hybrid short film scheduled to screen ahead of the studio’s major late-year theatrical release. Set shortly after the events of the original 2002 classic Lilo & Stitch, the short explores the domestic chaos that ensues when the titular pair introduces a rescue cat named Scratch into their Hawaiian home.
The project is significant not only for its return to the Lilo & Stitch universe but for its technical execution. It utilizes a hybrid approach where CG character models are rendered to be nearly indistinguishable from hand-drawn animation, placed against hand-painted watercolor backgrounds—a hallmark of the original film’s aesthetic.
The Feature: ‘Hexed’
While the short provided the emotional peak of the presentation, the upcoming feature Hexed served as the technical centerpiece. Directed by Fawn Veerasunthorn, the film follows Billie, a teenager navigating the mundanity of high school, and her mother, Alice. Their lives are transformed when Billie discovers dormant magical abilities, triggering a fantastical journey that explores the complexities of the mother-daughter bond. The film is positioned as a modern evolution of Disney’s "magic" subgenre, drawing heavy stylistic inspiration from the "Milt Kahl era" of the mid-20th century.
Chronology: From Legacy to Innovation
The presentation was structured as a journey through Disney’s past, present, and future.
- Opening with Legacy: The event began with a tribute to Disney’s history of magical storytelling. Fawn Veerasunthorn opened by linking the studio’s current projects to the "Walt Disney era" and the "Renaissance era," emphasizing that Hexed is the latest entry in a century-long exploration of the supernatural.
- The ‘Lilo & Scratch’ Reveal: Shifting gears, the team unveiled the Lilo & Stitch follow-up. They screened the opening minutes, which transitioned from a quiet moment of Stitch watching slapstick comedy to a high-octane physical battle with the new feline character, Scratch.
- Technical Demonstrations: Malcon Pierce and Veerasunthorn then broke down the "hybrid" workflow. They showcased animation tests where a 3D Stitch interacted with a 2D Scratch, including a sequence where a laser gun shifted dimensions as it was swallowed by the cat.
- The ‘Hexed’ Deep Dive: The final portion of the presentation focused on Hexed. The directors showed unfinished footage from the first act, highlighting Billie’s discovery of her powers and the vibrant, fluid character animation that defines the film’s look.
- Closing Remarks: The panel concluded with a focus on the emotional core of their stories, specifically the relationship between Billie and Alice in Hexed, promising that the spectacle of magic is merely a backdrop for a grounded human story.
Supporting Data: Technical Specifications and Talent
The success of these projects hinges on a mix of returning veterans and innovative technology.
Bridging the 2D/3D Gap
One of the most notable aspects of Lilo & Scratch is the return of Alex Cooper Schmidt, a supervising animator from the original 2002 film. Schmidt worked traditionally on paper for several scenes, providing a blueprint for the CG team to follow. His presence ensured that the "squash and stretch" and the unique weight of the characters remained consistent with the original film.
Voice Talent:
- Chris Sanders: Returns to voice Stitch, maintaining the character’s iconic vocal identity.
- Maia Kealoha: Reprising her role as Lilo from the recent live-action adaptation, Kealoha provides a bridge between the different iterations of the franchise.
The "Milt Kahl" Aesthetic in ‘Hexed’
For Hexed, the art team explicitly cited Milt Kahl, one of Disney’s legendary "Great Old Men," as a primary influence. This manifests in "pushed proportions"—characters with more expressive, exaggerated features that allow for higher-frequency physical humor. The studio is moving away from the "soft-realistic" CG look of the early 2010s toward a more stylized, graphic approach.
Background Production
Lilo & Scratch utilizes scans of original 2002 backgrounds, which are then integrated with new paintings created both traditionally (watercolor) and digitally (Cintiq). This ensures a visual continuity that digital-only workflows often struggle to replicate.
Official Responses: The Human Element in a Tech-Driven Era
Throughout the presentation, the speakers emphasized the importance of human artistry, a sentiment that resonated deeply with the Annecy audience amidst ongoing industry concerns regarding Artificial Intelligence.
Fawn Veerasunthorn on Artistic Inclusion:
"Our studio includes artists working in multiple disciplines who wanted to work with these characters. We worked with our incredible team to figure out how every artist, whether they use pencil, pixel, paintbrush, or Cintiq pen, could all join in on this film."
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Malcon Pierce on the Craft:
In perhaps the most pointed comment of the session, Pierce stated, "Everything in this short was crafted by artists." While he did not mention AI by name, the remark was widely interpreted as a reaffirmation of Disney’s commitment to human-led creative processes in an era of increasing automation.
The Vision for ‘Hexed’:
Veerasunthorn highlighted that while the film deals with portals and bracelets, the "true magic" lies in the mother-daughter dynamic. "The story of Billie and Alice is where the heart is. We’ve always loved exploring magic, but it has to be rooted in something real."
Implications: Competitive Landscapes and the Future of Disney
The Annecy presentation revealed several critical trends for the future of Walt Disney Animation Studios.
The "Twin Film" Phenomenon
Industry observers noted striking similarities between Disney’s Hexed and DreamWorks’ Forgotten Island, which was also showcased during the festival. Both films feature teenage girls with magical artifacts opening portals to enchanted worlds. While some might see this as a competitive risk, the animation industry has a history of "twin films" (such as Antz and A Bug’s Life) succeeding simultaneously. Disney’s focus on the Milt Kahl-inspired design and the specific emotional beats of the Billie/Alice relationship are intended to differentiate Hexed from its DreamWorks counterpart.
The Return to 2D Sensibilities
The overwhelming reaction to Lilo & Scratch suggests that there remains a massive, underserved appetite for 2D animation. By investing in hybrid technology that allows CG to mimic the "watercolor and paper" look, Disney is testing a middle ground. If Lilo & Scratch is a hit, it could pave the way for a new era of hybrid features that capture the charm of the Renaissance era with the efficiency of modern digital tools.
Addressing the Skeptics
Prior to the presentation, online rumors suggested that Hexed might be framed around vertical video formats to appeal to Gen Z. The footage shown at Annecy decisively debunked this, revealing ambitious, wide-screen cinematic staging and complex visual layouts. By showing this footage early, Disney has successfully shifted the narrative from "gimmicky" to "polished and ambitious."
Final Thoughts
As Disney heads toward its late-2026 releases, the studio appears to be playing both sides of the coin: leveraging the safe, nostalgic power of established IP (Lilo & Stitch) while taking measured risks with new, stylized original content (Hexed). The emphasis on "artist-crafted" work serves as a vital PR strategy, positioning Disney as a bastion of traditional craftsmanship in a rapidly evolving technological landscape. For the attendees at Annecy, the message was clear: Disney is not just maintaining its legacy; it is actively trying to reinvent the tools used to build it.
