1 THE CONDITION
Visual Effect (VFX) industry are changing rapidly. Back in the 1980’s until now, many milestone had been made within the industries using groundbreaking technology. Imagery things that can never be done before can now easily archived by artist. This increases the demand of shot in effects per year, in addition to government tax incentives making the industries more globalize. Technological advances making the competition barrier even lower thus resulting excessive supply than demand.
But even in this rapid growth of the VFX industry, the business practice used doesn’t evolved a bit to match with this evolving modern world.
In recent months, there has been an issues regarding the frayed business models, insecure vision of the future, and the financial instability. These matters became a worldwide dialogues when a protest at the Oscars by a group of 450 VFX artist protesting outside the Oscars.
Following this issues, an ex-ILM FX legend, Scott Squires has supervised effects on the likes of Transformers: Dark Of The Moon and The Phantom Menace, spoke about this when asked about the Rhythm and Hues, a VFX company that just goes bankrupt
“Rhythm & Hues was one of the biggest FX companies. They'd been in business for 25 years in Los Angeles. So here they are, doing great work and winning Oscars, and yet they ran out of money!”
This report are focus solely on issues relevant to the VFX industry and information collected on number of sources. Keeping the viewpoint without any bias, this report takes an agnostic and academic approach to the issues presented, to be as comprehensive as possible in analyzing the issues thus presenting it on global scale in wide spectrum.
2 THE ISSUES
Based on the data collected from various sources, these challenges the VFX industry facing on related to the business models, workforces issues, profit margins and workflow, altogether contributing to this immense changes in the industry.
It can be classes into four complex driver to this problems.
Government Dynamics – Tax incentives have a huge impact on where work is produced. Insurance, exchange rates, health and other benefits that vary by country also can affect the studios, facilities and workers.
Industry Dynamics – Several issues regarding on how the industry is structured includes: there’s a few large...