SANTA MONICA-525 Studios has shut down its 12-year-old Hollywood facility and at press time was in the process of consolidating that operation’s creative talent and resources into the new 525 Studios, Santa Monica. Virgin Digital Studios (VDS), the parent company to 525, originally planned to maintain both 525 sites. But over the past month and a half as the Santa Monica studio got up and running, it became clear that consolidation made the most sense, according to VDS president Steve Hendricks.
Hendricks cited several factors behind the decision, including the high volume of business already being handled at a Santa Monica shop that won’t be officially launched until June. "Most of the business-especially in commercials-is on the Westside. That’s where our clients want us, and that’s where the big sword fight is on among competing facilities," he related.
Also tipping the scales in favor of consolidation were, continued Hendricks, "the strain and drain on management of maintaining two facilities. To focus on three buildings [the Hollywood headquarters and annex as well as the Santa Monica operation] in two Los Angeles locations was very hands-on demanding and ultimately not necessary in the big picture."
Hendricks said he resisted that reality for some time because of his ties to and personal feelings about the art deco Hollywood building. Hendricks co-founded 525 in Hollywood. "I have a great attachment to the Hollywood location," he explained. "It’s difficult for me to close 525 Hollywood but it’s the right business decision." Hendricks added that he hopes to possibly place a new Virgin-supported company-perhaps a graphics design, E-commerce or Internet content creation venture-in the Hollywood space.
Hendricks estimated that 525 will lay off about 20 Hollywood staffers whose support and administrative roles have become redundant with the coming together of the two 525 operations. But 525’s contingent of creative talent remains intact and will relocate to the 17,000 square foot Santa Monica quarters. The bottom line, he said, is that the vast majority of Hollywood employees will continue at 525 Studios, Santa Monica. They will complement a 525 Santa Monica ensemble of talent and resources that include such recent additions as colorist Jais Lamaire and C-Reality, Cintel’s HDTV telecine (SHOOT, 3/19, p. 7). 525 Studios, Santa Monica, continues to be headed by CEO Eric Bonniot.
VDS’ facility holdings include: 525; Rushes and West One Television, both in London; Lost Boy Studios, Vancouver, B.C.; and Virgin Television de Mexico in Mexico City. VDS is part of the U.K.-based Virgin Group.
