R&H may remain a standalone company but unless California enacts tax incentives for vfx work it is likely to be a much smaller one. Its current El Segundo HQ will be sold and it is likely to send as much of 80% of its vfx volume overseas.
But Roman was also clear that the combination of a lag in production and large subsidies in Canada, especially Quebec, threaten the California vfx industry. “There’s a strong desire to keep the visual-effects industry alive in CA but nobody knows quite what to do about the tax subsidies in Canada. This is where the industry grew up and where innovation happened.” Roman said she had decided not to open a Vancouver branch because she didn’t want the extra overhead. ~variety.com
Tippett Studio 'Why the Hell Doesn’t California Do Something?'
New Owners Prana: The Auction of Rythm & Hues
Mill TV has not been immune to the volatile trends present in film and television production.
— The Mill (@MillChannel) March 28, 2013
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| Post No Bills |
The winner of the Rhythm & Hues auction is a bidder tied to effects/ animation firm Prana Studios, 2 sources have told me. Details TK
— Ben Fritz (@benfritz) March 29, 2013
Rhythm auction resuming at 11 am. JS Comm objecting because they don't want to lose their break-up fee despite walking away from the deal.
— Mark Wilkins (@mark_wilkins) March 28, 2013
Part of objection: When JS withdrew as bidder, R&H dropped requirement that next bid be at least (stalking horse bid + $525K). ~David S. Cohen @ Variety.com
Just heard from someone connected to the talks they're "98% positive we aren't getting any news tonight" on R&H winner. #vfx
— David S. Cohen (@Variety_DSCohen) March 28, 2013
Hearing no winner in R&H auction a/o 6pm. There were 5 bidders. 2 are left. #vfx
— David S. Cohen (@Variety_DSCohen) March 28, 2013
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| AHHHHHHHHHH!!!!!!! by Jesse Toves |
@vfxsoldier Monday: Mill TV nominated for VFX Bafta. Tuesday: Staff told the company will shut at the end of April. #RIPtheMill
— Lord Shoreham (@MiddleManor) March 26, 2013
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| UK ArtistsAttend the VFX Forum in London |
“A disproportionate amount of talented visual effects artists and seasoned VFX veterans are in California,” Fulle says, “but we need to level the playing field here. Otherwise we’re going to see the industry disappear completely. If we keep playing the subsidies game and the visual effects hubs keep moving from one country to another, visual effects will not progress at nearly the same rate that we’ve seen in years past.” ~Jenny Fulle
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| VFX Crossroads Pt. 2: Can The VFX Business Be Saved? |
Leon Drolet, chair of the Michigan Taxpayers Alliance, said movie makers are never loyal "to who bought them dinner."
"The film credit program sells itself as a match-making opportunity where you can connect for a productive and long-term relationship," Drolet said. "In reality, it is like a Craigslist hookup."
There have been few details on the plot of the fourth Transformers movie, but the third film in the series was panned by the website, Rotten Tomatoes, with a 36 percent rating.
"This could finally be the film that embarrasses legislators so much that they eliminate the film incentive," Mackinac Center for Public Policy Fiscal Policy Analyst James Hohman said, jokingly.
Hohman said Michigan's tax dollars used for movies would be better served on fixing roads. ~Hollywood Transforms Itself to Milk Multiple States for Movie Money
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| Support the Artists! Wait a week! Campaign |
@vfxsoldier My sources say Burbank Pixomondo definitively shutting down, TBD date, very soon. #vfx pros relocating yet again.
— VFX Law (@vfxlaw) March 22, 2013
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| The Real Wizards by Jesse Toves |
@begunfx @drscottross @neonmarg Maybe someone should start a filmsubsidies.org with links & info for taxpayers & politicians.
— Scott Squires (@scott_squires) March 20, 2013
“You’ll go to work in a film studio like you’d go to work in a car factory,” Kumaran said. “The consumer doesn’t care where the green screen is.” ~$90 million movie studio slated for Effingham
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| The "sword" clause ... by Jesse Toves |
The silver lining in today's R&H news is that whoever buys them won't have to cover the large break-up fee JS had arranged. #vfx
— David S. Cohen (@Variety_DSCohen) March 20, 2013
"Other companies known to be circling Rhythm & Hues are Psyop and Prana Animation." (variety.com)
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| Because there are plenty of other geese in the shed. by Jesse Toves |
On the troubled VFX business
“There’s so much pressure to get budgets down,” Stokdyk admits of the current VFX business climate. “Not a day goes by that I don’t have conversations with people [about the business]. We struggle to look for solutions. It's a complicated series of problems.”
Stokdyk declines to discuss the particulars of Oz's VFX budget but says it didn't lose money, giving particular credit to Raimi and Tamara Kent, VFX producer on the production. “Sam’s a producer as well as a director; he understands budgets and schedules and works with us… It’s got to be a collaborative process otherwise nobody succeeds.”
He says of Kent's "tricky" job: “You hear stories about producers who are hard to work with and unfair with budgets, but she was so great and respectful to the companies. ... If there were more VFX producers like Tamara, the industry would be in better shape.”
Oz’s total production budget was $215 million.
Just to keep everyone informed.... A committee has been formed to further the possibility of the formation of a VFX Trade Association. We have had responses from 12 of the 15 VFX facilities. Eleven of the twelve companies have agreed to investigate the possibilities of a Trade Association. We are now interviewing legal counsel in hopes of setting a meeting w the VFX CEO's within the next 3 weeks. Wish us luck! ~Scott Ross
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| VFX Crossroads: Causes & Effects Of An Industry Crisis |
Possible new model for the VFX industry anirama.com/eet/an-alterna… (I'll probably lose some friends over this one.) @scott_squires @vfxsoldier
— rosendahl (@rosendahl) March 15, 2013
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| We all have something in common. by Jesse Toves |
