Business Notes ENTERTAINMENT

The Christmas season is a traditional time for parents to take their children to the movie theater for a little animated fun. This year Walt Disney has reissued its classic Cinderella, and Filmation is coming out with a sequel to Carlo Collodi's classic tale called Pinocchio and the Emperor of the Night. Both represent an increasingly rare breed: animated movies made in the U.S.

Almost unnoticed, much of America's animation business has moved offshore, primarily to Japan and South Korea, in search of lower costs. Since 1980, the number of unionized U.S. animation workers has fallen from 1,650 to 1,250, and Lou Scheimer, president of Filmation, contends that his Pinocchio could be the last all-American-made animated movie. Filmation may soon join the ranks of animation companies that produce most of their TV cartoons overseas.

Walt Disney executives insist they will continue to make animated movies in the U.S., but not all their TV shows. Disney's new Duck Tales series is animated in Japan.