By 2001 , the rise of sustained competitors to Disney in the feature animated film market , such as DreamWorks Animation ( founded by former Disney executive Jeffrey Katzenberg ) , created an increase of film releases of significant annual number enough for AMPAS to reconsider . The Academy Award for Best Animated Feature was first given out at the 74th Academy Awards , held on March 24 , 2002 . The Academy included a rule that stated that the award would not be presented in a year in which fewer than eight eligible films opened in theaters . It recently got rid of that rule on April 23 , 2019 to make voting for animated films more acceptable . People in the animation industry and fans expressed hope that the prestige from this award and the resulting boost to the box office would encourage the increased production of animated features . Some members and fans have criticized the award , however , saying it is only intended to prevent animated films from having a chance of winning Best Picture . DreamWorks had advertised heavily during the holiday 2001 season for '' Shrek '' , but was disappointed when the rumored Best Picture nomination did not materialize , though it was nominated for and ended up winning the inaugural Best Animated Feature award
74th Academy Awards
74th Academy Awards
Academy Award for Best Animated Feature