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Re: Rhythm and Hues

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Mark Suszko
Re: Rhythm and Hues
on Mar 1, 2013 at 9:02:22 pm

I don't know that protectionist moves will help in such a porous situation. We could match the foreign tax breaks here in the US with federal money... (he said on the first day of the Sequester kicking in because D.C. is hopelessly gridlocked)

I talked about this global problem a couple of years ago, when I had a minor epiphany regarding high speed data networks. The packets don't care if you are rendering in Kansas City or Karachi. Milwaukee, or Mumbai. Chicago or Changsha. it may be night here, but they are awake on the other side of the planet and ready to take your business away, for lower rates. A rate you can't live on is still a kingly sum to folks living on a dollar a day.

Right now its high end VFX but soon enough it will be straight editing as well, lowest common denominator for price. From a wedding edit to a corporate one, you will be competing with a global market of people who are willing to do it cheaper, and your ONLY advantage might be your talent and creativity versus theirs. We saw stories about this this past year in the journalism biz, where some newspapers were having their LOCAL news written up by sweatshop cube farmers in the Philippines and by AI algorithms that re-processed stats and PR releases into news copy. WBEZ radio broke that story when they caught Chicago papers doing this.

So, do we all just hang it up and go apply for a job at the local pet store? Well, no. Eventually, maybe, though. The very Heavy Iron VFX houses that are falling today may be the only ones with the scale to stay afloat, but they may evolve into production companies developing their own films in competition with the studios. Our business models will have to continue to adapt and find the niches that can't be served as well from out-of-country. To me, that suggests a very hyper-local business and one with small margins.

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