Ray Richmond contributes to Deadline’s conference coverage.
In the wake of the mass layoffs and bankruptcy filing of the VFX house Rhythm & Hues at the same time it was winning the Oscar for the film Life of Pi, the entire future of the visual effects industry has come under scrutiny — even as Rhythm & Hues recovers under new ownership. The question of the company’s crash-and-burn while creating award-winning work led off a Produced By panel this morning entitled “The Unlocked Picture: Global Opportunities in VFX and 3D Conversion,” where the consensus was that the R&H situation was both an anomaly and a harbinger of VFX industry issues that won’t soon be going away. “It’s a tough business and changing business, and we’re right in the middle of a very tumultuous time,” said Chris DeFaria, Exec VP of digital production, animation and visual effects for Warner Bros. Pictures. While noting that Rhythm & Hues was beset by obvious cash flow problems, DeFaria maintained that the VFX business is being altered by an increasing standardization of tools and techniques and, most importantly, by more competitive financing globally. “You have an international workforce that’s mobile and capable of setting up low cost labor markets,” he noted. “There’s a big benefit in the exchange rates. These forces conspire to make it a very difficult business.” (more…)