As technology advances and competition grows more intense, post facilities often need to examine business models and explore new ideas and trends. In this week’s Special Report, several execs from post houses discuss those ideas. Each answered a series of questions: What are the latest trends in postproduction? Has HD finally become a major player in the post arena? How are remote operating systems helping post shops? What is the next big technological advance? How are post facilities diversifying (i.e. moving into cinema advertising, feature film work, television, video games, etc.)? How do you view the current creative climate? Below are their answers:
Ralph Belfiglio
Founder/creative director
Fish Media, New York
In today’s market, a successful shop needs to have a reputation as a reliable and consistent source of fresh ideas and inspiring creative solutions. The trend is to set the trends, while at the same time provide outstanding client services. Clients need to feel confident from the moment they entrust their project to your shop that every facet of the postproduction process will be a positive experience.
Adding to the very competitive atmosphere in the post arena is the steady stream of talent that is taking advantage of today’s affordable technology by breaking away from staff positions to open their own shops. This influx of new players has helped raise the creative bar by making everyone else try a little harder to stay on top. The competition is what will drive good work out of everyone.
HD is entrenched in the broadcast industry, and the commercial market is well on its way to becoming its next conquest. Those of us with an eye towards the future of commercials have geared up for HD, and welcome it. Clients return to a visual effects shop because of the caliber of its talent. However, they need to feel confident that they’ll also find the kind of comfort level that only comes with a shop that they know is committed to embracing new technology, and presenting them with the most up-to-date creative solutions that technology has to offer.
Technology seems to always advance with faster machines, more efficient software and upgrades, and at the same time become more affordable to facilities. Who knows what the next big thing is? I hope they figure out a way that I could work efficiently from the Caribbean.
A lot of post facilities are branching into other areas of the business. For example, editorial houses are trying to get into graphics, production companies into editing, etc. Everybody is moving into other areas to diversify and expose themselves to new clients and offer new services. It’s a smart idea when it’s done properly. It’s one thing for an editorial house to buy a Flame to enable them to do some basic graphics in-house. But when the flame is manned by an operator, rather than a designer, and they start to bill themselves as a editorial/effects house, it can damage the company’s overall reputation. It is great to diversify, but a company should excel in the areas they are moving into.
The work that I come in contact with seems to have moved away from the silly, try-to-get-your-attention advertising, to smarter, well thought-out campaigns. I’ve also noticed much more production value going into spots. I have seen a lot more creatives embracing technology and using it more effectively in their spots. Today’s creatives are better educated as far as what can be done in post, and don’t seem to be afraid to experiment with it in order to create new looks or enhance the look and feel of a spot.
David Binstock
CEO
Multi-Video Group, New York
With regard to longform, as more and more networks are now broadcasting in high definition, clients are choosing to finish with 5.1 surround mixes, as opposed to stereo mixes, and are mastering in high definition vs. standard definition.
I don’t see the commercial world responding to shooting in high def. We’ve seen a few test commercials shot with the Panasonic DVC Pro HD and then finished in standard definition. Longform and feature work has taken off. We have had several clients shoot high definition in both formats and also finish in high definition, usually mastering to D5 (a lesser compressed format).
We can get files faster and also share jobs [while] working in separate locations by partnering with other studios, and it keeps overhead controlled when workload is lighter.
There doesn’t seem to be any new or revolutionary technology coming out any time soon, but the existing technology is improving and getting faster.
In the past, post houses were often pigeonholed into one sector of the business, whether it be commercial or broadcast and feature work. Over the past several years, the lines have been crossed. Now with HD, people are shooting low-budget features and finishing the same way.
Jim Bohn
Partner
Sea Level, Venice, Calif.
The explosion of specialized desktop software applications on different platforms has had the greatest influence on the way we work. Not so long ago, we did most of our work on our bigger systems, but now we perform a variety of supportive tasks on smaller systems. We use these different platforms to best pair combinations of artists and software with each task. Ultimately, when we have a room full of creatives, they are able to work in a more interactive environment—less watching paint dry, especially when combined with the horsepower of the big machines.
We have had an increase in HD commercial projects, especially in the second half of 2003. For the end of 2003, we had as many HD projects monthly as we had the entire previous year. Many of the commercials we finished in high definition were for both cinema and broadcast delivery. Even though our clients are enthusiastic about having a finished commercial that’s high-definition quality, they are still wondering if those extra few dollars could be spent somewhere else—especially given the small number of viewers watching HD.
So the emphasis of our development has been on minimizing the additional cost and time spent on an HD project. Being at the end of the process, we’ve also learned the crucial role we play in informing our clients about the HD process before production.
Whether it’s across town or across the country, most of our clients have frequently needed to review and/or approve our progress remotely through the use of our Telestream, FTP, and Point to Point IP Networks. We rely on these facilities every day. We look to the day when we can [send] anything from rough tests to finished spots to any remote site.
Our focus is on visual effects and finishing for commercials. Our emphasis has been to strengthen this core business by adding CGI capabilities, more HD equipment, cross-platform storage solutions, and more special applications.
I think that the current creative environment is more interactive. Our clients are coming to us much earlier in the process. Whether it’s a conversation during concepting, an opportunity to pre-visualize before shooting or various tests throughout the process, our close working relationships have made our process more collaborative.
Peter Corbett
President
Click 3X, New York
The major trend for us has been the dramatic increase in HD and digital cinema work. This has required us to ramp up both the storage and processing capacity at Click 3X several-fold.
A key follow-on from this trend has been the way we archive projects. Last year, we moved to a completely digital archive process using high capacity tape drives. This now means that we can permanently store the entire project and reload it with all the settings and layers intact for future changes. I don’t think this has really impacted the industry yet—but it will.
We have noticed a trend to different media. Two of our larger projects have been a package of Intel "commercials" that were delivered as AVI files to be embedded into the cinematics of video games, and a large project for Samsung to build content for the superscreen in Times Square. These non-traditional outlets in conjunction with some Web-deliverable work significantly broadens our view beyond TV and cinema.
Last year was not a great climate for great creative, but the innovative work in non-traditional areas more than made up for the lack of great TV spot creative projects.
Tom Duff
President
Optimus, Chicago
Creating work models where anyone working on a project can have access to the most recently created work, or follow a path back to the original, untouched source media [is a trend]. This workflow is affecting not only editing, but finishing, color and audio, as well. In our house, we’re looking forward to continuing to find ways for all of our artists, editors, engineers and finishers to share media more extensively.
As a format, HD has much to offer. Most facilities like ours have absorbed some form of HD into their infrastructure. From a post perspective, working in HD is not about how many homes have an HD receiver in them, but rather using the higher resolution of HD to produce higher quality images and graphics, while at the same time creating a single master element that many other formats can be derived from. We see it as an interim solution for our clients that do not want to scan film, but want to multi-purpose their media.
We are seeing far more production created on HD-cams and we’re working on several large projects that originate in Haddam 24P. What’s great about it is that the process largely stays the same. Our clients get the tools and the artists they expect, but Haddam becomes another option for them to capture their stories on.
We are seeing a need to create scenarios in which our clients can work in Santa Monica at CO-OP, our editorial facility there, and create work here in Chicago at the same time.
We also have a need for our Chicago-based clients to be able to talk and work with our editors in Santa Monica. We do not believe technology is ready to create finished work, but rather "offline" elements to be used in the process.
Digital intermediates are being talked about a lot. It won’t quite be the same in commercial postproduction [as it is on feature films], but creating elements at the highest resolution possible—and letting everyone in the process have access to work with them, change them and create new media—is essential. More importantly, leaving the original image untouched while creating multiple versions is imperative. It creates a virtual "undo button" that we’ve never had before.
We have touched some different types of moving pictures besides basic :30 commercials. Longer format pieces such as Web episodes and two- to three-minute "mini-stories" for airing in theaters are becoming more prevalent.
Also, in our graphics area, we find ourselves doing much more upfront design work, essentially collaborating with the agency creatives for anything from title and/or logo design to actually participating in creative review sessions in the actual development of the idea itself.
The last couple of years, we saw a lot of re-edits, promotional type stuff. We are now seeing a lot of fresh ideas, and as a result, the creatives themselves seem rejuvenated, as well. It’s like spring time for advertising—everyone’s walking and thinking with an extra bounce in their step.
Heidi Habben
VP/director of marketing
Crash & Sue’s, Minneapolis
These days, when a spot comes through the doors of a post house, it can no longer be assumed that it was created solely for broadcast TV distribution.
A growing number of spots need to be distributed on HD or PAL, or repurposed for cinema release or the Internet.
In the past, such eventualities were often dealt with after the fact. However, agencies are increasing their efficiency by dealing with the distribution needs of a wide range of mediums at the onset of jobs. Planning ahead for titles and product labeling in different languages, as well any global trafficking services that might be required, is also part of the trend towards servicing multi-tasked advertising.
Some post houses diversify organically, evolving into an expanded role and offering new services with the same commitment to high-end talent and quality that they had when they launched their primary service.
Other facilities just seem to want a bigger piece of the pie, hoping that the convenience of one-stop shopping will make up for less than stellar talent as they try to break into a new market.
Not all shops that diversify are committed to maintaining the same level of commitment to the quality of their new services. They need to take one last, hard look at how the quality of their new services is going to impact on the reputation that they worked so hard to build.
Today’s climate seems energized. Our clients are bursting with ideas and open to exploring innovative new ways to execute them.
Rick Hassen
Managing director
A52, Los Angeles
It appears that the board flow has increased a great deal, and from that perspective, things are great. There is certainly a trend toward accelerated schedules and challenging budgets.
Technically, I would say that there is a very mature set of software out there in Discreet and Avid. Final Cut Pro is having more and more of an impact in both offline and finishing. Clients are traveling less, so remote services and visual asset management is becoming more important. To say nothing of companies opening additional locations, like the newly opened New York facilities of London-headquartered shops like The Mill, Smoke and Mirrors and Framestore CFC.
More and more, I see design companies delivering finished spots using After Effects, Photoshop and Final Cut or Avid. It’s a great template for the future. Concept, creative, production and post through delivery under one roof … and so many of these companies are really great boutiques doing fantastic work. I feel this will be a growing trend, especially as we see more spots being delivered via the Web.
High definition has become more of a player than in the last two years; we have become more HD adept in the last year, and I see it becoming more of a factor in our work environments and our deliverables.
[Remote operating systems] are allowing our clients to work and interact with us more without getting on a plane. This trend has allowed companies to reduce the overall capital investment to open a location in a different city. Also, it’s changing the culture of our business—and this is no easy task. Technology has always changed our business, at least from a creative and efficiency perspective. Now with remote operating systems, there is a very specific focus to the time you are spending online with an artist or editor, and that focus is more defined. The culture of the room and the interaction with an artist is eroding—or changing into something else. Travel is not as easy. From my perspective, I feel the cultural aspects of traveling, the sense of community and dare I say the playfulness in the creative process are all eroding slowly, driven by shrinking budgets and advertisers taking more control of their advertising dollars.
I think we will see these mature software companies introduce greater efficiencies with networked solutions, background rendering, less expensive workstations, floating temporary licensing and, of course, some kind of integration for remote viewing and interactivity.
I think the larger companies have been diversifying quite extensively over the last decade, some of them through acquisitions. That can obviously be a very tricky thing, because it’s really based on an understanding of the language of a new market, and you cannot simply be seen as another potential revenue stream. We are in the visual effects industry, and while gaming, film, television, etc., all utilize our services, each of these realms has very different pipelines, politics and economics. Being able to do great commercial work does not necessarily translate into other areas, although it certainly can. It’s important to diversify to the extent that your expertise, personnel and facility continue to produce good work and remain profitable. We are looking at all the areas mentioned and approaching each one selectively, only after gauging the expectations of each industry realm before accepting a job.
Creative is conservative and cautious. We are so hungry for good creative that at times we will do anything to get the job, as will many of our competitors. If you consider the last round of Super Bowl spots, how many fart jokes and Punk’d-type antics can you do? Where is the magic and the seduction? The advertisers who have always taken risks, like Apple and Nike, continue to do so. Then there are some more traditional brands taking risks, like Cadillac in their Super Bowl ad, where they let a talented young director go for it all the way through the process to create his vision. Those rare exceptions to the rule are an inspiration, I just wish we got more of them and then had more time to work on them.
Jonathan Keeton
Co-founder/creative director
Radium, San Francisco
Desktop compositing and the power and speed of these systems are making an ever-increasing inroad into the high end. HD, as well as feature film work and high-resolution work in general, are continuing to increase, and we expect that trend will continue. The integration of CGI and compositing is the main unheralded story of these years, and this will continue to evolve.
Potentially, Apple’s acquisition of Shake—depending on what they do with it—could really change things in a big way. Mental Ray’s development and its subsequent integration into shops that previously used only Maya or attempted to use RenderMan is making some big changes, as are the other new renderers out there, such as Brazil.
Competition is probably more intense than it has ever been in the past 30 years, which is about as old as the industry. As has been the case for some time, it’s only fun if one is doing and being bid on (and recognized for) high-end work. Most shops are diversifying into longform and other areas, especially as the long-term viability of television and certainly traditional advertising is giving everyone the jitters. Some of the other areas of advertising, such as the BMW films-type programs and some of the cannier product placement in fictional venues, are pretty intriguing.
There is a fair amount of fear out there, and that tends to not generate bold work or allow bold work to be shot out of the sky before it hits the air or gets produced. Corporations seem to be much more conservative in what they will accept—all the more [reason] to fight hard for good creative and make sure it looks great when it’s there. It’s still fun to work in partnership, and that seems to create the best result.
John Montgomery
Visual effects artist
Avenue and SOMERsault, Chicago
It was quite interesting watching the Super Bowl in high definition—there still wasn’t a huge trend to post the commercials in HD. This is conjecture, but it seems as though the relative lack of HD sets in homes doesn’t provide motivation to finish spots in HD. However, I’ve been pleased with the desire of agencies to use high-definition finishing for spots that are being completed both for broadcast and/or projection in theaters. Finishing this way is great for our clients because they’re used to the process—it doesn’t differ much at all from finishing at standard-definition resolution. However, it provides a high quality output for theatrical release (where the resolution makes a huge difference in the quality of the final product), as well as an easy road to a down-converted commercial for broadcast use.
John Myers
Partner/executive producer
Ring of Fire Studios,
West Hollywood, Calif.
We now have more time, bigger budgets, and can knock the work out in our sleep … not! It’s really faster, cheaper, better, never seen before. That is one trend that doesn’t seem to change, ever. From our perspective, the trends are about placing the bar higher. We (the all-encompassing "we"—clients, associates, competitors, co-workers, etc.) all push each other to exceed "the last time out" with technology, talent and crossover so accessible we strap in and go as hard as we can every day.
Slowly but surely, we are doing more HD projects. I wouldn’t say it has become a major player, but we inch towards the inevitable.
From our perspective, the only remote operating system in our production pipeline is a simple FTP posting. The global industry that we all work in now, remote operating systems, will eventually work into all of our systems. It still has to come down to trust.
Diversification—our favorite subject. Constant reinvention without watering down your core business. Any successful company is always looking to figure this one out. As convergence was a big term introduced into production and post dialogue a few years ago, I think we can all actually see it happening in our work everyday: crossover. Find out what you do really well and chase down potential clients to do it with, generating business. Do it efficiently, so you can continue to do it.
Steve Schofield
Partner/executive producer
Zoic Studios
Over the last few years, visual effects have become more prominent in film and TV. The majority of shows are still shot on film. This means more film is being scanned and transferred to DI (digital intermediate) formats. HD is now the major player in this process. We are also beginning to see this trickle down into the commercial world. Production companies are now seeing the technical, as well as the visual benefits of doing transfers to D5 and other HD formats compared to standard definition. Dealing with HD allows you to deliver in many formats, while maintaining a high-resolution master. With that, there is an increase for the need of larger/ faster storage systems and networks.
Systems based around Linux and FreeBSD have helped keep these costs down to facilitate the postproduction process of animators and compositors dealing with DI footage. Some of the newer technologies on the horizon such as 10Gigabit Ethernet and 4GB Fiber Channel will help us play catch-up to the increase in DI workflow.
Zoic’s COO/CFO Tim McBride said it best: "In order to have a sound business, we need multiple revenue streams, such as commercials, feature film, television, games and music videos." Commercials are booming, and we’re working on our fifth cinematic for the games industry. Should you diversify? I hope I have already answered your question! How to do so? I have a rule: Never hire anyone who can’t bring their own dinner to the table. Look for strengths in people you’re hiring. Don’t be afraid, believe in your talent, and go for it.
As always, it’s busy in the first quarter. But is the creative any good, and what will we be doing in April and May? The answer depends on who you ask or who they are working with. The best way to judge the work climate is by asking yourself if you’re working with the best people, and what you can do to produce better creative. Let’s start with asking: What have I presented to my client lately? Have I shown our newest work? How can I best help them reach their goals? Most of us are in the service business, so service your client. Make him/her want to work with you. Research your clients’ work and determine what your company could bring to the table.
Marc Schwartz
Managing director
Fluid, New York
I think the "latest trend" in our business is actually business management-related, and not creative or technological issues. The playing field is relatively even; there are many talented people, we can all afford the same boxes, and new companies spring up frequently. The difference, or challenge, is that we now look more seriously at our creative companies from a business perspective of: Is this a well-rounded and healthy business model? Can it produce efficiently and support itself on the busiest day of the year? Can it survive, and for how long, during a slow period?
Post houses have sales reps, marketing efforts, PR and events. We talk about cash flow and ROI. It used to be that we came to work, made cool stuff, and there was enough to go around. Competition is fierce today, and it has forced us to respond by acting like responsible management professionals. It’s been tight long enough now that we’ve almost all unconsciously adjusted our thinking from managing creative to creative management.
We’ve finished a few spots in HD, though it’s still infrequent. Maybe it was all the build up and hype that caused us to expect a HD explosion, but we haven’t seen it. Perhaps when the cost of a HD set is less than that of a small car, we’ll see more.Remote laptop systems are amazing. People are composing and cutting on set, at home, and on their commute. In-house, we can optimize our physical space by using these systems for unsupervised sessions.
More frequently than ever, I find myself looking at our people, gear and workflows, and thinking about what else we can make with all this stuff. Truth is though, providing our services to the advertising market is a full-time job. And as quickly as technology advances, delivery times shorten. Making a DVD or posting to a Web site is relatively "instant," and sometimes that doesn’t feel fast enough. [The state of creativity] depends on what day you ask me. Some clients want us to deliver more (a good day), some begin by thinking they want us to deliver more but then get reined in by their client (starts out as a good day), and some want us to deliver the board (good or bad day depending on the budget).
Staying ahead today means quickly identifying which category you are working in, and then creatively servicing the project to that end. In general though, it feels like there are few spots out there that cut through the clutter.
Krystn Wagenberg
President
Mad River Post, New York, Detroit, San Francisco and Dallas
The success of an editorial house can be measured in several ways. Editorial houses can be judged by gross sales, technical equipment, space, location, client services, brand products or their talent. We can speak about the trends in post, or if HD is going to be the top finishing choice, what kind of machines will we edit on, etc. What defines an editorial house is its talent and relationships with directors and agency creatives. Talent, talent, talent. I believe that an editor who is at the top of their game can edit on any type of machine. With that said, the fact that technology is making it easier to be remote and have more editorial options cannot be overlooked.
An editor can take a director’s footage and either get the best out of it or miss it entirely. The art of picking selects, music and sound design, and the timing of the cuts is a gift that is not easily attained. The creative process comes from the editor’s ability to explore all aspects of the film and develop the idea that the client is trying to sell. An editor needs not only the technical means, but also a supportive environment. An editor needs to be nurtured, guided and supported so that they can have the freedom to do their job. The editor’s task is also very much dependent on what the director has shot. The relationship of editor and director needs to work in tandem. Technology is making that easier. The most powerful creative, in my opinion, comes from that strong bond between editor and director.
The kind of vibe an editorial house projects is the second most important factor to its success. People like to feel appreciated, important and listened to. If the staff isn’t happy or having fun working together, a client will pick up the tension in the air. A team of people working together and really caring about what they do enhances the editor’s ability to be creative.What technology has given us is the ability to edit remotely and work in many different environments. The success of the DV Pro system has opened up more choices and more options. The days of 3/4-inch tapes are almost obsolete. The clients can now request that their work be edited at the same time they are shooting. Technology has also given the editor many more options that were one time only possible in the finishing stages. The easy ability to composite, animate or color correct footage is now a norm in our world.
Has technology made the editing process faster and less complicated? Not necessarily. The more toys that can be played with only give more choices and ability to explore. The ability to take pieces of the footage and composite them after the shoot gives an editor more flexibility to enhance an idea or create an illusion. The possibilities are endless and thus time consuming. The best editors will help discriminate between the many choices available.
The ability to tap into talent internationally is a trend that has become a big part of our creative process. Our relationship and proximity to Smoke and Mirrors gives us the ability to not only work with an editor here, but to use the talent of the entire company in London as well. The use of high-resolution tiff files and the ability to send files from London to New York has made that possible. The quality control and the ability to hold more data and take it right into the session is a wonderful asset to the creative process.
The use of the DVD format is amazing. The quality, the size, the durability and packaging has given a whole new meaning to reels. We have just begun to explore the potential of that new group of editors who is able to program and create visual storytelling. A new definition of an editor is about to emerge from that potential.
The current climate in our industry is still one of feast or famine. The ability to have editors that specialize in comedy, visual, documentary or dialogue styles helps. Last year, it seemed that comedy wasn’t on top and clients weren’t taking risks. The safe way of nice visuals took its place. This year, the creative is getting ediger and comedy is on top again.
