I have created a second posting here with a simplified Q & A using the comments and responses from Scott Squires for easy reading.
I originally posed these questions in a way to make it easy for someone to offer some real answers and change people's minds on the topics.
Here I have trimmed out any of the discussion about the current state of affairs (which we all understand) and only put the factual answers as responses, below. If you would like to read the correspondence in it's entirety, click here.
This Q & A does not directly answer every question, but at least when I sit at a table full of artists, producers and tool makers who are discussing the current situation, I am armed with some answers and accurate information.
Angie Jones - How can a union for VFX be effective when VFX/CG/Anim facilities are located all over the world and have their own rules regarding creating or developing unions?
Specifically, I would like to know how a union here in the US could compete with studios overseas who may or may not have unions who hire non-union workers for their shows?
Scott Squires - Yes, facilities are all over the world. The only rules governing the unions are government rules, not rules from the studios or facilities.
A guild will not fix those problems. Those are issues controlled by governments. The guild can provide more protection for the workers so they don't get dropped without pay and some of the other things have been happening in vfx.
Angie Jones - How can a trade organization enforce any regulations when an American movie studio can simply incorporate overseas to avoid any American laws or taxes against runaway production? Even better, American movie studios could just buy cruise ships and sail to wherever the money is... and incorporate there.
Scott Squires - The Trade association is for the vfx companies. What if all the top vfx companies companies agreed on a given business model? Such as cost plus? Then the companies no longer have to underbid and go out of business. With a majority of the companies on board where are the studios going to go for their tentpole movies? They can't simply farm it all out to 10 man crews around the world. And that's a different solution/issue than subsidies.
Angie Jones - Not really an answer here and a lot of "what ifs..." Maybe Scott Ross can offer more on this Q one day?
Angie Jones - Even if a union were to succeed somehow (see Q #1) what exactly would this union do about the 1,000's of workers who are no longer employed and cannot join the ranks because they are not working as a formal employee at a facility.
How do you create a solidarity of a work force when no one is working... or worse, those working are forced to take jobs as mis-classified contract freelance workers for smaller studios because those are the only studios hiring domestically?
BTW, if you are not a legal employee, you cannot join a union. I would say 75-80% of my colleagues are freelance contractors and although employed, are not a w-2 employee of any facility. Where is the workforce?
Scott Squires - It doesn't make sense for non-employed people to be in a union. Who is the union bargaining with? How are the contributions and benefits being paid for? I also believe there are laws in place that you have to be employed. Not every thing a union does or can do is of their own choosing. There are very specific federal laws about what they can and can not do.
Freelance contractors- Film crews are made up of freelance people. However that doesn't mean they can't unionize. They're all in the union. There is no vfx union. There are no companies signed on as union companies for vfx work. If and when vfx workers decide they wish to unionize they could do so. They could freelance and go from job to job and not have to worry about being paid or about benefits.
To go union all you need is for 50% of the workers to sign rep cards (anonymously) . Doesn't matter if the company has 10 people or 1000 people. The ones currently working that would qualify for a vfx union (contractor, w2, whatever) have to sign rep cards. If they had already done so in the number required, the company would be union already.
Angie Jones - So, if you are unemployed and in between jobs, you cannot sign a card. Once you are employed again, you can sign a card, even if you are a 1099 freelance contract employee. I was under the impression for some reason you had to be a legal employee of a facility (read: staff employee on the books) to sign a card. I know I am not the only one who thought this, so hopefully this helps clear things up.
Angie Jones - How about a breakdown of exactly what people get for signing a card?
Scott Squires -That's all written up in my post on the vfx guild. http://effectscorner.blogspot.com/2013/04/visual-effects-guilds.html
http://vfx.iatse-intl.org
http://vfx.iatse-intl.org
http://vfxunion.info
send in a email to VHoltgrewe@iatse-intl.com for details not found at the sites.
1. People submit signed rep cards.
2. When the union get's a large percentage (60% or more) then they contact management and tell them that the majority of their workers want to be union.
3. Hopefully the company agrees and works out a deal. This deal will involve the people who voted to go union to provide guidance.
4. If not, then by federal law there is a vote.
5. If the vote is yes then the company is union and all working there that can be covered by the union are now union. The union works out a contract with those who voted helping to work out the terms of what they want.
6. Any shop that unionizes, the people currently working there pay no initiation fee.
7. Union people pay their dues (few hundred typically but depends on your category and wages).
If enough workers in vfx unionize then the IA will set up a separate IA local just for vfx. Until that time the closest matching union will be the temporary home. If a new union is formed then members will vote on who to represent them from fellow members.
Angie Jones - I was under the impression Union Dues were two months salary, not a couple hundred dollars... but I guess it's cheaper than I thought? I paid more than a couple hundred dollars a month to the VES every year and I am not sure what I got for that money.
Angie Jones - - How would a trade organization go about lobbying to get subsidies to end? Specifically, how would they do this? My father worked in the apparel industry and I listened to his woes at the dinner table as I grew up. His choice was to create a sourcing company to find companies overseas that could produce garments cheaper than US workers. Everyone in the apparel industry hated him at first when he started this company, and then later they all wanted to work with him because NAFTA basically did nothing to help the situation. Sure assets are taxed when they come back into the country, but there are ways to get around that. Do you tax every asset built for a movie set? What if there are more revisions? Do you tax it again? You cannot find a American company now a days that can sew garments at the same level as India and China, it's a lost art. How would a trade organization fix the fact that the world is now flat and we are competing globally?
Scott Squires - The Trade org would be global and as such not likely to deal with subsidies. (i.e. some companies will win/lose as subsidies change). Unfortunately the subsidies are a huge problem. vfxsoldier is in the process of trying to get WTO coverage to support their own regulations. Other avenue is to let tax payers know about the cost to them, their loss of money and how politicians are giving their money away to film studios when it could be put for public use. Not sure why ukuncut and orgs have yet to figure this out.
Trade association - it's a changing world. This is much different than the auto or garment industries. Movies are not priced to the consumers based on the work we do. The companies simply allow the studios to make more profits. We do what we can. Realize that all vfx companies around the world are having to jump through the same hoops. The vfx companies have allowed themselves to be in the least leveraged position possible. And vfx workers seem to be intent on helping them do it. As long as vfx companies simply roll over, the worse this will get. Standing up as companies is one of the first steps.
Angie Jones - Again, not really an answer here. I was hoping the Trade Organization would form a group of lobbyists to work with government to make change. This is probably the biggest point of contention for most people I speak with working in VFX/CG/Animation is that they feel the ship has sailed and there is nothing we can do about the subsidies, therefore, the US studios have stopped hiring domestically and will continue to form studios overseas and make it a requirement of employment to agree to work overseas. A race to the bottom.
I guess we can only hope that taxpayers become more aware of where their tax money is going and figure out the fuzzy math and rise up against these kickbacks.
The main problem is if the subsidies are not dealt with, there is no work force to unionize because they are all overseas or in Canada.
Angie Jones - If it has taken 25 years for Scott Ross to organize the VFX facilities - why do you think a trade organization can happen in 6 months? Why do you think you can now turn this thing around with the complexity of the entire industry moving... not only out of California, but out of the US? This is a time sensitive issue. People are losing their houses, their cars, and are faced with leaving the industry entirely to keep their kids in school and food on the table.
Scott Squires - I don't think anyone said 6 months. The point is the at least some companies are starting to realize what's happening. Same as with vfx artists, it seems to take the longest time just to break through with the basic concepts and have people open to considering it. Organizing is a faster process than getting mind share.
Angie Jones - Scott Ross told me it would take 6 months on fb. I am sure he is ideally positive when it comes to this thing and I am a big cheerleader behind his/your efforts. I do hope the "Mind Share" turns around within the next six months because there will be no experienced workforce left to worry about otherwise. This is a time sensitive issue. I know people walking miles to job interviews because they have lost their car and do not even have money for a bus ride. It's really bad.
Scott Squires - I don't think anyone said 6 months. The point is the at least some companies are starting to realize what's happening. Same as with vfx artists, it seems to take the longest time just to break through with the basic concepts and have people open to considering it. Organizing is a faster process than getting mind share.
Angie Jones - Scott Ross told me it would take 6 months on fb. I am sure he is ideally positive when it comes to this thing and I am a big cheerleader behind his/your efforts. I do hope the "Mind Share" turns around within the next six months because there will be no experienced workforce left to worry about otherwise. This is a time sensitive issue. I know people walking miles to job interviews because they have lost their car and do not even have money for a bus ride. It's really bad.
Angie Jones - What is the schedule to make all of these "solutions" you propose happen? Is that schedule going to jive with the fact that it may be a day-late-and-a-dollar-short to make any change? I would like to see a schedule. If it doesn't happen in six months to a year... things look dire to most artists working now.
Scott Squires - Timeline. If artists signed rep cards today the union could file to unionize a company tomorrow. Workers control the speed of this. If they truly wish things to change quickly they could do so. But everyone's simply dragging their feet and wringing their hands. The trade assoc is up to how anxious the companies are.
Angie Jones - I honestly know no one dragging their feet. Only people out of work and frustrated who have signed cards like myself but are not working. Maybe all of these people you feel are dragging their feet, will change their minds when they read this?
I sensed irritation with my questions and I apologize if the inquiries came across as redundant. I honestly stopped reading the VFX soldier, VFX Law and other blogs because they come off incredibly angry and ranting and I know I am not the only one. I am hopeful the positive presentation of information here for artists might clear the air on many topics bothering us all.
I used to think - "Why do I need a union?"
Now, I am thinking the situation is so messed up, "why not sign a card and see what happens." I am in the fortunate situation that I am teaching mostly now and do not rely on VFX/CG/Anim to pay my rent. But, that is not the case for most of my colleagues. Hopefully the people you feel are dragging their feet will take the "why not" attitude now. I mean what has anyone got to lose, now?
And "Yes," as you state there ARE facilities located here in the US. However, the only facilities hiring domestically are the tiny boutique commercial houses, because the schedule wouldn't even allow for sending anything overseas. These houses are doing their best to keep afloat and so they hire mostly 1099 contract workers to avoid paying workers comp and taxes.
I understand you say the Union will change this, and maybe it will? I understand your frustration with people not signing cards, but it's up to the Union to explain what signing a card means in simple terms. More to come on this topic, I am sure.
Scott Squires - Timeline. If artists signed rep cards today the union could file to unionize a company tomorrow. Workers control the speed of this. If they truly wish things to change quickly they could do so. But everyone's simply dragging their feet and wringing their hands. The trade assoc is up to how anxious the companies are.
Angie Jones - I honestly know no one dragging their feet. Only people out of work and frustrated who have signed cards like myself but are not working. Maybe all of these people you feel are dragging their feet, will change their minds when they read this?
I sensed irritation with my questions and I apologize if the inquiries came across as redundant. I honestly stopped reading the VFX soldier, VFX Law and other blogs because they come off incredibly angry and ranting and I know I am not the only one. I am hopeful the positive presentation of information here for artists might clear the air on many topics bothering us all.
I used to think - "Why do I need a union?"
Now, I am thinking the situation is so messed up, "why not sign a card and see what happens." I am in the fortunate situation that I am teaching mostly now and do not rely on VFX/CG/Anim to pay my rent. But, that is not the case for most of my colleagues. Hopefully the people you feel are dragging their feet will take the "why not" attitude now. I mean what has anyone got to lose, now?
And "Yes," as you state there ARE facilities located here in the US. However, the only facilities hiring domestically are the tiny boutique commercial houses, because the schedule wouldn't even allow for sending anything overseas. These houses are doing their best to keep afloat and so they hire mostly 1099 contract workers to avoid paying workers comp and taxes.
I understand you say the Union will change this, and maybe it will? I understand your frustration with people not signing cards, but it's up to the Union to explain what signing a card means in simple terms. More to come on this topic, I am sure.
The State of the VFX Industry and where do we go from here
I finally got a moment to watch this talk and I think it's great that someone has finally explained the complexity of the issues that lie before all artists working in CG, Animation and VFX. Especially, someone without a thick Spanish accent, that no one can understand, and two individuals with street cred working in the business for years.
I would love to hear a talk from these same two guys, that goes beyond the explanation of what is wrong with the industry. I would love to hear more about their specific solutions, which they seem very determined to make the trade organization and union work, and further explain specifically how these two groups/orgs could even have a chance of working... when it feels to most artists working - the "ship has sailed (pun intended)."
I would love to have questions like these answered specifically:
1 - How can a union for VFX be effective when studios are located all over the world and have their own rules regarding creating or developing unions? Specifically, I would like to know how a union here in the US could compete with studios overseas who may or may not have unions who hire non-union workers for their shows.
2 - How can a trade organization enforce any regulations when an American movie studio can simply incorporate overseas to avoid any American laws or taxes against runaway production? Even better, studios could just buy cruise ships and sail to wherever the money is... and incorporate there.
3 - Even if a union were to succeed somehow (see Q #1) what exactly would this union do about the 1,000's of workers who are no longer employed and cannot join the ranks because they are not working as a formal employee at a facility. How do you create a solidarity of work force when no one is working or worse, those working are forced to take jobs as mis-classified contract freelance workers for smaller studios because those are the only studios hiring domestically? BTW, if you are not a legal employee, you cannot join a union. I would say 75-80% of my colleagues are freelance contractors and although employed, are not a w-2 employee of any facility. Where is the workforce?
4 - How would a trade organization go about lobbying to get subsidies to end? Specifically, how would they do this? My father worked in the apparel industry and I listened to his woes at the dinner table as I grew up. His choice was to create a sourcing company to find companies overseas that could produce garments cheaper than US workers. Everyone in the apparel industry hated him at first when he started this company, and then later they all wanted to work with him because NAFTA basically did nothing to help the situation. Sure assets are taxed when they come back into the country, but there are ways to get around that. Do you tax every asset built for a movie set? What if there are more revisions? Do you tax it again? You cannot find a American company now a days that can sew garments at the same level as India and China, it's a lost art. How would a trade organization fix the fact that the world is now flat and we are competing globally?
5 - If it has taken 25 years for Scott Ross to organize the VFX facilities - why do you think a trade organization can happen in 6 months? Why do you think you can now turn this thing around with the complexity of the entire industry moving... not only out of California, but out of the US? This is a time sensitive issue. People are losing their houses, their cars, and are faced with leaving the industry entirely to keep their kids in school and food on the table.
6 - What is the schedule to make all of these "solutions" you propose happen? Is that schedule going to jive with the fact that it may be a day-late-and-a-dollar-short to make any change? I would like to see a schedule. If it doesn't happen in six months to a year... things look dire to most artists working now.
I ask these questions not to be arbitrary or argumentative. I ask because these are the questions that are debated at bars and dinner tables by those working in the CG/Animation/VFX industry for years, and we haven't heard any specific answers.
I applaud the ability to finally explain such a complex issue in a clear and concise way, but...
By the time anything gets organized, will there be any creative left wanting/financially able to stay in the industry?
P.S. It might be good to change your graphic representing the people working on these movies from a guy at a workstation to a paint brush, pencil or some other artistic icon. The biggest problem is neither the audience or the movie studios see VFX workers as artisans or creatives. Only we can change that.
I also would like to coin the term VFX/CG/Animation Creatives (rather than workers) so we can change the reputation of what we do for film making. And, we should band collectively. There is no VFX only labor issues or any "sister" Animation industry. We are all in this together. Meaning anyone working on something that is not shot in camera. Period.
P.S.S. My animation students have great concerns regarding all of this since they are about to embark on the same journey into Animation and VFX and all worry they are making a bad decision. My advice to them goes like this... There is a lot of money to be made. That is apparent at the box office. It's going to take a good year for everyone to decide how the pie will be split. And, once the dust settles... I am hopeful about the outcome, but also realistic.
Seamless interaction between the digital and physical world using specially formulated infrared-absorbing markers – hidden from the human eye, but visible to a camera embedded in a compact mobile projection device. Digital imagery directly augments and responds to the physical objects it is projected on, such as an animated character interacting with printed graphics in a storybook.
Matthew Luhn Story Supervisor, Pixar Animation Studios
I adore my Jot Pen, and for the days I can get my ipad away from my boyfriend, I have a lot of fun with it... but, these tools look really fun! I imagine they only work with the application, but who cares if you have this kind of power.
In my graduate school painting program, we read a lot of Robert Henri. It's a great read for any artist. If you are working for a studio, style is set out for you... but, if you are working on your own films you have free reign to choose your style as an artist.
May 2013's ianimate Student Spotlight is - Lorenzo Colaiori. Lorenzo always went beyond expectations in my class. He even donned a girl's pink wig!!! when acting out reference for one of his close up acting shots that was driven by a female character. Lorenzo is now a graduate of ianimate and I couldn't be more proud!
Mr. Colaiori took my WS3 - Advanced Body Mechanics course AND the WS4 - Closeup Facial Acting and Lip sync course at ianimate Spring 2011 and Fall of 2012. You can see how both his body mechanics and facial acting are top notch!
In case you haven't been paying attention...
Layoffs at Electronic Arts
Publisher confirms some cuts, denies report of Montreal operations shutting down entirely
...read more here
Layoffs underway at Disney
Disney has begun laying off around 150 staffers at Walt Disney Studios. Employees began receiving pinkslips Wednesday morning.
Individuals working in home entertainment, production, distribution and marketing, as well as the company’s music and theater business in New York City are feeling the brunt of the impact, with only a small number of employees leaving the animation division.
read more...
LucasArts Shutdown Triggers Layoffs at ILM
Today’s announcement of the shuttering of LucasArts Games and the layoffs that followed has had a ripple effect within Lucasfilm: Layoffs at Industrial Light & Magic.
Lucasfilm has long had a strategy of sharing technical resources and staff among visual effects, animation and games. But with production finished on the “Clone Wars” animated series and the next Star Wars animated series not yet in production, and the closing of LucasArts, a portion of its staff was left working only for ILM’s vfx business.
...read more
VFX House Pixomondo Shuts Shanghai Office, Will Move Away From Film
Visual-effects company Pixomondo will move away from the film business after shutting its Shanghai office in the wake of closures in London and Detroit, the company told TheWrap.
CEO and founder Thilo Kuther (pictured below) said Pixomondo, which recently completed work on the Tom Cruise action film “Oblivion,” has just laid off roughly 20 animators and artists in the Shanghai office. About a half-dozen employees were moved to its Beijing office, he said.
read more...
Chinese Partners Play With Fourth ‘Transformers’
The “Transformers” film franchise has found a few friends in China to get the fourth installment made.
Just don’t call it a co-production.
Paramount Pictures has brokered what it calls a “co-operation agreement” with state-backed broadcaster CCTV’s China Movie Channel and Jiaflix Enterprises to produce “Transformers 4,” which Michael Bay is returning to helm.
CCTV comes under the umbrella of the powerful State Administration of Radio Film and Television.
read more..
The Mill Plans to Close Its TV VFX Department
As the VFX industry awaits the results of Rhythm & Hues’ bankruptcy auction -- where parties met until 2 a.m. PDT and a decision was expected this morning -- London-headquartered The Mill revealed that it plans to close its TV visual effects unit, with a possible loss of 25 jobs.
The Mill CEO Robin Shenfield said in a statement that Mill TV -- whose credits include Doctor Who, Merlin and Sherlock for the BBC -- has weathered losses in 2012 and that red ink has accelerated in the first quarter of 2013. The facility will continue to focus on its commercial business in the U.S. and U.K.
According to the statement, "Mill TV has suffered a number of setbacks such as failing to join the roster on Starz/BBC production of DaVinci’s Demons and the cancellation of Sky’s Sinbad sequel. Going forward, broadcasters are commissioning less high-end VFX driven drama series this year, with Merlin discontinued and the BBC not commissioning a Doctor Who series this year."
read more...
Tippett Studios VFX House Lays Off 40 Percent of Workforce
Berkeley, Calif.-based VFX company Tippett Studios laid off 40 percent of its workforce Friday, the company's CEO and president Jules Roman confirmed to The Hollywood Reporter, with the possibility of more pink slips coming.
More than 50 visual effects designers were let go, leaving a staff of 100 full-timers still working at the studio, whose recent work is on display in such blockbuster films as Ted and Twilight: Breaking Dawn.
"We're hibernating, figuring out a way to reinvent and scale down because there's a lag in work obviously and there's such upheaval in the visual effects industry, period," Roman said.
read more...
I fell behind this month on the student spotlight, so it's a double feature! Two for the price of one!
My student last block Yukari took WS4 - Closeup Facial Acting and did an amazing job!
She is now working for Luma Pictures in Australia.
She is now working for Luma Pictures in Australia.
Pedro de la Llave - Please from pellufo on Vimeo.
This is a shot Pedro de la Llave is still cleaning up for me
this block in WS4, but I think he has been doing an amazing job!
You can see more of his work here!
I have added a VFX news section (top left of the menu) to the blog where updates to the plight of VFX will be posted. Not everyone is on FB or Google + so I will do my best to keep the information updated. if you have VFX news you want posted there, please, send email to angie {at} spicycricket {dot} com
Now that we have mobilized, what's next? Let's get together for a town hall meeting and discuss it.
- State of the Industry by Scott Squires
- Moderated panel discussion with Q & A
- Panel includes Scott Squires, Scott Ross, Steve Kaplan, Gene Warren, Jr.
- Connecting multiple locations via Google Hangout
- Broadcasting live on YouTube at 8:00 PM PDT
Post questions for the panel in the comments section. In order to get an accurate headcount, please RSVP only to the location you plan to physically attend. Big thanks to Gnomon for providing the space!
http://
http://goo.gl/maps/lv0md
#vfxtownhall
Parking: Biggest lot is one attached to Arclight Hollywood, about a half mile north of Gnomon. Walk 4 blocks south on Cahuenga through Gnomon gate at 1015 N. Cahuenga. Look for signs to direct you to the Stage area. Easiest entrance: through Gnomon gate at 1015 N. Cahuenga, we'll have signs to direct you to the Stage area.
Austin will be watching https://www.facebook.com/
Austin will be watching https://www.facebook.com/
Studio says none of its animation companies are working in the traditional 2D format, and there are no current plans to do so again.
Speaking at an annual shareholder's meeting in Phoenix, Arizona, on Wednesday, chief executive Bob Iger revealed that none of the studio's animation companies was working on 2D, hand-drawn material for the big screen. While Iger did not rule out returning in the future to the style which made the company famous, the long gestation period for Hollywood animated productions means a gap of several years before any new film might emerge.
"To my knowledge we're not developing a 2D or hand-drawn feature animated film right now," said Iger. "There is a fair amount of activity going on in hand-drawn animation but it's largely for television at this point. We're not necessarily ruling out the possibility [of] a feature but there isn't any in development at the company at the moment."
Read more here...
Have you noticed a lot of green profile pics on facebook? If you work in Visual Effects or have a friend who does, you might be seeing a lot of green on your feed. Most of my readers here work in VFX/Animation, so you should know what I am talking about.
However, I was shocked at some of my own animation student's impression of "what is going on" in the VFX/Animation field they hope to enter as a career... so let me explain.
Life of Pi cost $120 million to make, its current gross is $600 million. Ang Lee and Claudio Miranda won Oscars last night for Best Director and Best Cinematographer. Above is what their film looked like without the work of the hundreds of VFX artists whom neither man acknowledged or thanked.
THE GREEN BOX: For all the Non-VFX, rising students and animation folk out there, the green square you are seeing on facebook is to show solidarity for the struggling VFX and animation community. The snubs felt at the Oscars are the symptom of a very ill industry that is on the brink of imploding. Without the hard work of VFX facilities and artists on films like the Oscar Winning "Life of Pi", modern films would be nothing but green or blue screens and guys in funny body suits jumping around. I will attempt to explain the complex events that have led up to the current plight of our industry.
Scott Ross, who was a top manager of Industrial Light & Magic and a founder at Digital Domain, started the ball rolling with a tweet: "I had a dream, 500 VFX artists near the Dolby (Kodak) theater on Oscar day waving signs that say 'I Want a Piece of the Pi Too.'" Since then, the plan spread online, with protest organizers launching a Facebook page, and some investing in a banner that will be flown by a plane over the theater during the red-carpet ceremonies, reading "box office + bankrupt = visual effects vfxunion.com."
Photo permission Jon Tojek
Artists from VFX and animation carried signs up and down Hollywood and Vine to bring awareness to the issue. The protest came out of frustration among the artists. Contrary to what the rest of the world thinks, the artists working on movies are not rich. Artists receive no residuals, royalties or back-end bonuses from the award winning films they work on. On a union movie set every person working on a film is covered. They have a residuals, pension, health benefits, but not the post production artists. Even puppeteers are SAG covered. Thus, "If the work VFX/Animation/CG artists create is the main reason these movies are blockbusters, why don't they get a piece of the pi?"
Doing it for effects … a placard held by a protester from the visual effects industry at the 2013 Oscars. Photograph: Billy Brooks
PERCEPTION: Perception is what this protest was all about. It's not about punishing the VFX facilities, or the movie studios... it's about letting the rest of the world know what is going on. The KCRW Interview below reveals the perception of our industry. The director - Pete Berg sums it up at 19:24 into the show - link below.
VFX Industry in Trouble: Won and Oscar Now What?
Director Pete Berg says, "The Business to be is ILM. (Industrial Light and Magic) That is who is making all the money."
CULTURE: Most VFX/Animation studios today are nothing more than sweatshops with hundreds of artists working an average of 12-16 hour days. To make this crystal clear, the toughest run I worked in my career was 21 days (16 hour days) in a row. I seriously thought I was going nuts towards the end of that run. I have friends who have worked 9 months without a day off.
It wasn't always like this, though. I have seen the decline in culture at the studios since 2000 as CG and VFX driven movies continued to make more and more money. You would think if the movies are making more money, the folks involved would be too... right? Nope, the complete opposite has been happening. The last show I worked on was in 2011. I have purposely only accepted work from home because the culture at the studios has become one I do not want to work in.
The schedules presented today are 1/4th of what I saw ten years ago. A shot you would normally have 4-6 weeks to work on, is now bid at 4-6 days!! It is insane! No one leaves their desks. Everyone is tense, trying to make the impossible, possible. When I moved to LA in 2000, I was given benefits and sick days, permission to work out at the gym for free on lunch hours, 401k, and the animation facility even paid to move me and all of my belongings up from San Diego. Today, you will not see that. Today, your are lucky to have a job. It is a toxic, abusive working atmosphere. Why would I stay in this field?
THE BUSINESS MODEL: The VFX/Animation industry has a shaky business foundation on which to build a business model.
- very small profit margins
- no trade organizations to work towards raising those profit margins
- no unions to work on the artist's behalf
- subject to the whims of client, revisions and schedule changes
- no way to cover overhead in between show schedules
ENTER SUBSIDIES: Government funded movie productions (up to 30% of the budget) pop up in London, Vancouver, India, Singapore, China, Australia and various other places around the world. These VFX/Animation facilities find a way to pay for the overhead of keeping artists employed and the lights on, in between the schedules of each show, with this extra money in countries with lower costs than the US.
HOW CAN A U.S. STUDIO COMPETE?
The US studio has no cash flow, everything that comes in goes right back out and now their competition has the upper hand with the extra money to float in between projects and lure cheap talent with the work. I heard Scott Ross give a great analogy in an interview. He said owning a VFX/Animation facility is like owning an airline. You aren't making money unless the planes are in the air. So, you fill the seats at any price. He said VFX facilities are run the same. Get the bid in low, so you can get the cash flow in to keep the place afloat.
Runaway production, overseas competition and government subsidies have forced domestic VFX houses to survive on less than 5% profit margins. Of the many studios I have worked at over the years, five have gone out of business or bankrupt:
Digital Domain,
Asylum FX,
Cinesite: Hollywood ,
Cafe FX,
and now Rhythm and Hues.
The company behind the Life of Pi's stunning visual effects, which made the movie possible, Rhythm & Hues went bankrupt as the film just passed the billion dollar mark in global ticket sales. The CG & VFX (visual effects) facilities that make the Hollywood blockbuster movies possible bid shows at a loss. The Hollywood production companies walk away with profits. Artists who dedicate their lives to their craft get the boot.
NOT JUST VFX: The folks working in CG Animation for studios like Dreamworks, Disney, Pixar, BlueSky, etc. are feeling the push to create more profit too. See the breakdown below of recent closings of VFX and Animation Facilities.
From Reddit:
Digital Domain: September 11th, 2012 Closed Florida facility, laid off 350 employees
Pixomondo: February 24th, 2013 Closing Detroit & London Offices http://www.variety.com/article/VR1118066500/
Electronics Arts: February 21st, 2013 Extensive Layoffs http://www.polygon.com/2013/2/21/4014372/ea-montreal-los-angeles-layoff
Rhythm and Hues: Feb. 16th, 2013 Bankruptcy, Layoffs
Junction Point (Makers of Epic Mickey): Jan. 29th, 2013 Extensive Layoffs
Disney Interactive: Jan. 29th, 2013: 50 employees laid off
Valve: (Makes of Half-Life): February 13th, 2013 30 Employees Laid offhttp://www.forbes.com/sites/danielnyegriffiths/2013/02/13/layoffs-at-valve-senior-staff-among-rumoredreported-departures/
Sony: January 28th, 2013 Major layoffs
Activision: February 19th, 2013 Major Layoffs http://www.escapistmagazine.com/news/view/122232-Activision-Realigns-With-Layoffs-and-New-Focus
Funcom: Jan 25th, 2013 Closes Beijing, layoffs elsewhere: http://www.neoseeker.com/news/22039-funcoms-beijing-studio-to-close-staff-layoff-in-montreal-and-north-carolina-locations/
Dreamworks: Feb. 7th, 2013 Several hundred upcoming layoffs http://www.businessinsider.com/dreamworks-animation-layoffs-2013-2
Technicolor: Feb. 21st, 2013 Closing Facility
THQ Jan. 23rd, 2013 Studio Closure, Massive Layoffshttp://www.gameinformer.com/b/news/archive/2013/01/23/thq-layoffs.aspx
Eurocom Dec. 23rd, 2012
Double Negative Oct. 20th, 2012 Layoffs of 150-200 individuals http://www.standard.co.uk/news/london/sky-falls-in-for-bond-workers-as-effects-firm-slashes-jobs-8218096.html
THE RACE TO THE BOTTOM
Although the green square on facebook makes reference to the behind the scenes of VFX, CG Feature Animation is suffering the same layoffs and outsourcing. Artists at big studios working on intellectual properties fear losing their job. Staff positions with benefits and sick days no longer exist. Newbie animators with little to no experience are being hired and trained only to find a sink or swim attitude. If the newbie doesn't cut it in production, they are let go. You get three weeks to prove you can work at the same level as a seasoned artist. The race to the bottom is about to hit rock bottom. The next few months, will reveal what is in store for the industry as a whole.
I could go on about this topic, but I think this a good time to stop, take a breath and see what happens next. I will say this. I love to animate. I had fun when I first started in the business. I won't return unless the biz model and culture changes, though. I am hopeful there will be change. Artists are not asking for much... live where they already have planted roots and/or own their house and not have to uproot their families to find work every 6 months, work a respectful 8 hour day, fair pay, benefits, health care, and the like.
In the meantime, here are some more articles on the subject.
http://www.kcrw.com/etc/programs/tb/tb130225vfx_industry_in_trou
http://www.animationmagazine.net/vfx/vfx-community-reacts-to-ang-lees-oscar-speech/
http://www.fxguide.com/quicktakes/visualeffectsprotestatoscars/
http://thebigsocialpicture.blogspot.com/2013/02/the-oscar-protest-that-you-didnt-know.html
http://www.studiodaily.com/2013/02/getting-our-piece-of-the-pi-for-real/
http://www.guardian.co.uk/film/2013/feb/25/oscars-protest-life-of-pi
http://www.hollywoodreporter.com/news/oscars-2013-vfx-artists-blast-424304
http://www.huffingtonpost.com/2013/02/24/jaws-oscars-life-of-pi-_n_2756380.html?utm_hp_ref=fb&src=sp&comm_ref=false
