Outsourcing of the
Visual Effects Industry in America
As runaway production has led the VFX biz to take work to such far-flung and money-saving locations as Canada, Ireland, New Zealand and Australia, the Brits have grabbed the biggest slice of the action.

When Industrial Light & Magic (ILM) recently announced it would be the lead effects company on a couple of big Films, why take much notice? These days U.S. Visual effects companies, even the 800-pound gorilla ILM, such announcements are becoming rare.

Though they've long ruled the visual effects universe, U.S. shops like ILM and Digital Domain are being squeezed like never before by fast-rising competition from abroad, especially London.

The U.K.'s generous tax breaks, despite recent tightening, are driving producers to spend their production coin there, with U.S. shops cut out from the get-go. It usually comes down to price these days. First it's price and then it's quality.

Section 42, is the tax incentive largely responsible for bringing the blockbusters to London and as long as the tax benefits are protected, the post houses should be playing host to Hollywood's finest for some time to come.

There is a way to stop this epidemic – enforce existing trade agreements, like the Motion Picture Association of America (MPAA), that have language designed to protect this industry.

(VFX Runaway Production)

Posted: October. 26, 2005
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From Asia Times, South Asia
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From the Daily Variety
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From the Daily Variety
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