Taking stock of the current state of the postproduction industry, we’re confronted with a landscape that mixes promise and peril.
While the creative output of post companies has never been stronger–and new media formats and technologies present opportunities–there’s also been a shift in business practices that confront post houses with unprecedented challenges.
Memorable and effective ad content is the result of the collaboration among an inspired agency, which generates the concept; a talented director; and a creative editor, who crafts and shapes the final version into a compelling and persuasive message. As the final author, the editor and the post team play a critical role in the creation of successful content, regardless of whether it’s advertising or entertainment.
Most of the editorial and post shops that make these contributions are small, independent companies. They require reasonable profit margins and predictable cash flow to stay on the cutting edge of digital technology, new media and workflow innovation. If these basic needs aren’t met, it’s impossible for them to maintain the technology platforms and physical plants necessary to attract and retain talent–the kind that consistently delivers effective, world-class creative solutions.
But in recent years, the post industry has been under serious pressure to deliver the same quality work and level of service clients have been accustomed to with significantly reduced budgets and shortened schedules. During this time they’ve faced a litany of issues, such as extended payment terms imposed by major advertisers; constant downward pressure on prices; routine requests for services beyond the scope of the initial engagement (often without the offer of additional compensation); and, most dishearteningly, what appears to be a single-minded focus on cost while viewing creative work as a commodity.
In addition, independent post houses are dealing with preferred vendor lists that seek discounts without any guarantee of volume, the constant threat of sequential liability clauses and seemingly outrageous requests for confidential business information collected under the guise of “better understanding our vendors.”
We summarized all this in a document titled “It’s Time to Re-think Current Ad Industry Post Production Business Practices,” which can be found on the AICE website. It provides an overview of the business and offers suggestions on how post houses can deal with these concerns. Most importantly, it recommends better educating all involved on the value of independent editorial and post companies and the benefits they provide. We think it’s worth sharing with colleagues, peers and clients.
(Moody is AICE exec director.)
