A bit confusing at first, not being familiar with Fiverr - I thought you where asking about the website (omproductions). I have a lot of thoughts, but it would help to be more precise in your question. I you mean something like " is it interesting for AE work " , "does it bring the market for motion graphics down" and so on, then I have a few. You get what you pay for is still valid in this context. However, because of all the garbage out there there will be people who will pay for just about anything, so I think it's possible to make some money if you got no better way to do it. That being said, I do not feel threatened in my job security by potential Fiverr "AE artists".
Well, if you feel that a an hour or two(or more) of your work is worth $5, it's a great service. Or, if you want to hire someone who feels that an hour or two(or more) of their work is worth $5, then it's a deal.
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I think $5 is the minimum with no maximum. The good things about it: a reputation system, international reach. The ebay of services if you will.
The bad: international reach. :) No matter how hard you try, can't compete with someone of equal skills who is either subsidized by the government (China), uses pirated software (China, Russia, etc.), or whose living / operating costs are a small fraction of mine.
Google Helpouts will likely kill Fiverr though: it's got the monstrous marketing muscle behind it, integration with other Google services (hangouts), the starting price can be free.
[Steve Brame]"Is it that bad over there that these folks have to sell themselves for so little?"
There is a possibility they are doing that for reputation and to build up a portfolio. I see similar things happening on Helpouts - fairly sophisticated advice for free. Hopefully these prices will go up after the reputation is built.
That said - India has less than 10% of US' per capita GDP. While this doesn't necessarily mean their operating costs are 10% of the US average, it's probably a good indicator. :)