Saturday, 25 July 2015

In the clique of the boutique


Shots - July 2015

More and more Flame artists and VFX supervisors are choosing to become masters of their destiny by opening specialist shops, but will the success of the little guys mean they’ll get too big for their boutiques? Adrian Pennington speaks to the heads of several bijou studios to find out how big ambitions and small budgets are changing the market.

Small groups of entrepreneurial talent have been going independent for as long as there have been larger facilities for them to splinter from. Green shoots are, after all, vital for the regeneration of this business. But what’s noticeable about the recent trend in start-ups is the sheer number that have launched and thrived in today’s incredibly competitive market.
Most of these new businesses are happy to be classified as boutique, where the term refers both to size and a culture of personal service that’s apparently at odds with the factory mentality
of giant operations.
“Boutique is an attitude. It means more than one-size-fits-all,” says Paul Simpson, who pioneered the boutique movement with Realise Studio in 1999. “It’s really about running jobs from an artist-led, rather than a production or accounts, perspective.”
Derek Moore describes Coffee & TV, which he co-founded, as a “hippy commune”, adding “We support each other through successes and disappointments with a unified feeling you don’t get in a large facility.”
Will Cohen, co-founder and CEO of Milk, speaks for many when he notes, “We’re not listed on the stock market with a duty to return a dividend to investors. We still get everyone around the table and let them know the P&L of the business and where we are going with it.”
Scott Griffin, nineteentwenty’s MD, says he wants to inculcate “a small company feel but not a small company reputation”; while the essential
appeal of a boutique for Neon co-founder Tom Bridges, is “the palpable sense of enthusiasm, of collaboration, which our clients seem to enjoy. It’s not impossible to recreate this in larger facilities, but I think it’s exponentially more difficult.”
At a large company with more work and people to juggle, it’s not uncommon for a VFX producer to be looking after 10 jobs at a time, which means they’re being spread rather thinly.
“Jobs will often be shoe-horned in, last minute changes to existing jobs have to be accommodated, artists are being pulled off one job to finish another or to be sent on a shoot,” notes Chris Allen, executive producer at CherryCherry. A boutique operates on a different scale. “We can respond to client requests immediately. When you call us, it will often be me that answers the phone,” says Allen.
Hani AlYousif, VFX supervisor and founder of Filament, makes a similar point. “A producer and director don’t want to spend half an hour of their booking time waiting in reception. They know they can reach me. They know they can always get in when they want and that I will personally do the job.”
‘Boutique’ signifies a place that’s run a little leaner, is able to adapt a little quicker and offers an open architecture for different types of creative to gather in one space.
“It’s not just who you are but who you say you are,” says Jason Mayo, partner at New York’s Click 3X. “When companies say they are boutique they want to present a little bit of a
personality or atmosphere for a client to make them feel more comfortable.”
Artists with itchy feet will always seek to break out on their own, but the cost of doing so has previously been too high without venture capital backing. The shift from bespoke to off-the-shelf computing gear and from film to digital as an origination/distribution medium, has altered
the picture dramatically.
“When I was a colourist, the badge on the kit
really mattered,” observes Gary Szabo, MD of Smoke & Mirrors. “Now clients genuinely don’t care. They want delivery on time and on budget and above creative expectations.”
In 1995 a Flame cost a million pounds. Even three years ago you needed £200k, putting it beyond the reach of most wannabe owner- operators. In 2000, £270k would get you 240TB of storage, which today can be picked up for about £25k. Back then you would get little change from £1.5m if you wanted a telecine machine. Now grading software like Da Vinci is given away free.
Where hero hardware was once lauded above the operator, the industry now genuinely claims to prize the talent behind the machine.
AlYousif believes the catalyst for this was
the introduction of Smoke on a Mac in 2010. He bought two of them, sublet rooms in Soho and was off and running with a handful of loyal clients. After investing £90k in a Flame, Filament had to ramp up to beat MPC to the GoCompare campaign for Fold7 in 2013. “Once you have a Flame you can scale as much as you like by renting licences for Flare [a subset of Flame],” he says.
The democracy of tech is a universal phenomenon – VFX shops across the globe, from the US to Sydney to Amsterdam, have sprung up almost overnight. “You don’t need huge render farms on site,” says Simpson. “By plugging into the cloud you can scale to take on as much work as the bigger places.”
Kit costs are never this simple, of course. As Coffee & TV’s Moore observes, “The minute you have two people working on shared data you need shared infrastructure, which needs to be maintained and operate securely.”
Aside from the opportunities afforded by lower- cost gear, many founding fathers (VFX remains a male domain) also cite the bureaucratic hurdles in facility supermarkets as a reason to up sticks. Simon Wilkinson, managing director of The Flying Colour Company, recalls such frustrations at a former employer: “It took 35 business plans
just to sign-off buying a Baselight. I missed
the dynamism and diversity of being at the front of the creative process.”
Gripes like these may strike a chord with anyone seeking greater career control. “At a large outfit you’re just a number on a spreadsheet,” says AlYousif. “Now that I run the sales and admin side I don’t have to worry about an operating group outside the UK deciding to restructure my job.”
Bridges launched Neon as a reaction against financial targets and internal politics. “I wanted to focus on the work – and have that be the yardstick by which we get measured, rather than how much we spend on client lunches,” he says. “We make an expensive, highly bespoke, product. To me it’s madness to apply high volume, double-glazing- style sales techniques to that.” Neon is able to invest in R&D projects (such as pushing the technique of photogrammetry for short film Macro), “which no investor would have countenanced”.
An oft-quoted complaint from those formerly at big facilities is that the star artist will attend meetings to win the work but during the course of post will get shunted to another project.
“The client will get moved to the ‘B’ team or whoever happens to be free to work,” says Moore. “That has to happen to keep the machine running, but it means clients can feel lost.”
The more experienced an artist, the more likely they are to make a career move that will allow them to trade on their name. Setting up your own studio can be as much a lifestyle choice as it is about earning more of the pie. As Milk’s Cohen puts it: “Many have fantasized about the nirvana of owning their own place where everyone walks on pink fluffy carpets. We got our opportunity [when The Mill shuttered its TV programming VFX division] and now we have a responsibility to make it work.”
Aspiring to be a master of one’s own destiny is often just pub talk, but the recession may ironically have spurred more folk to walk the talk and actually walk out on their job security.
“Lots of people were doing crazy stuff for very little money just to keep money coming through the door,” says Moore. “When we came out of recession, budgets never went back up. That meant people found it hard to hit the margins, leading to a lot of the most talented staff feeling a bit disenfranchised and thinking they can do it better. What’s happened is a perfect storm of budgets dropping and technology becoming more affordable, allowing the best artists to prove to
themselves whether they can do it better or not.” Griffin admits he was one of those, co-founding nineteentwenty in November 2013 “to try and produce the best VFX for high-end commercials, but more economically.”
With the boutique genie out of the bottle the post production model has arguably changed forever. “More and more clients prefer the same great quality of work but with the more personalised service you get at a smaller place,” says Allen.
While some clients opt to route work through large facilities with whom agencies run bulk accounts, directors may stick to their guns for the choice of working with select talent wherever they may be [see box Big or boutique? below]. This is often the case if directors feel backed into working for an agency’s own ‘boutique’, such as WPP’s Gramercy and Publicis’ Prodigious.
“The market has worked in favour of dynamic businesses that can wrap their arms around production companies rather than simply supply them,” says Wilkinson.
None of this is to denigrate the work or reputation of international powerhouses like Framestore, MPC and The Mill. Most ex-employee- turned-facility-chiefs acknowledge the debt that they owe to their alma mater and the crucial role that these enterprise-class facilities can play in leading the market.
“MPC has a depth of creative talent not available in smaller studios,” says MPC Advertising’s global MD Graham Bird. “We offer more specialist talent in terms of digital intermediate – lighting, animation and world-class colour grading. The ability to deliver a project creatively from start to finish incorporating colour grading is a huge advantage.”
By definition, boutiques can’t offer that breadth of service, but being bijou shouldn’t lead to the misconception that they can’t take on volume.
“Boutique implies we’re not capable of the big stuff – and that’s not true,” says Moore, who’s not a fan of the term. “We won a very large-scale international campaign [H&M through Strange Cargo] because the client trusted us and wasn’t worried about our notionally smaller footprint.”
Allen agrees. “Smaller companies are just as capable of taking on creatively heavy VFX jobs. The difference being we just can’t take on as many of them simultaneously.”
In a saturated market often the greatest challenge for a start-up is finding and winning the work. “Loyal clients have stood by us and we can be competitive in terms of cost,” says Griffin. “We’ve been very careful to turn down a couple of larger jobs because at the time we felt we weren’t able to do them justice. An important part of the process is being honest about what you can and can’t do. One bad job would get around Soho like wildfire.”
Coffee & TV’s headcount has leapt from just four to 24 in two years. “Our original goal was to make the business robust. Now our goal is to prioritise the quality of work we do. We want to ring-fence the size of the operation, to stay together on one floor, because when you’re split between floors or buildings it is really difficult to communicate between teams.”
If size is part of being ‘boutique’, at what point do successful boutique brands lose that feeling – or what strategies can they employ to retain it?
“Someone once told me that after reaching around 20 people you need to start putting a lock on the stationery cupboard,” says Bridges. “That’s the point at which you start needing a layer of middle management, when going into work becomes just another job, when people can stop caring as much, and when financial priorities will
likely become more important than artistic ones. It’s not a hard-and-fast rule, of course, but I think there’s probably something to it.”
According to Allen, there’s a tipping point where a house goes from being a boutique to a beast. “Which is great, but of course some beasts need constant feeding.”
With growth comes greater financial pressure to meet the monthly payroll. As Allen observes, “The growth of a post house is very much exponential – doubling in size doesn’t necessarily mean your profit will.”
Milk began in 2013 as a largish boutique with 40 people. Now, having just opened a studio in Cardiff, the headcount is 120 – and rising.
“We were very vocal about not wanting to be big and that’s still the case,” says Cohen. “If you open somewhere else with 20 or 30 people you can very much replicate the culture you have in your main office rather than growing to 300 people at your main site.”
Opening small satellite companies seems to be the way many boutiques envision future growth. Coffee & TV and nineteentwenty staff London offices backed by a Bristol base. With studios in London and Istanbul, and plans to open another location soon, CherryCherry’s Allen says “You could call us a global boutique.”
In January, MPC opened a studio in Paris, far smaller than its LA and New York operations but along similar lines to its homes in Amsterdam and Mexico. Bird calls this “boutique studio within a network” unique and a way of keeping ambitious talent within the family.
“We help [talent] to realise their ambition by setting up a new business,” says Bird. “The studios have a boutique feel but they don’t have the limitations one might associate with some standalone studios since they are fully connected to MPC’s wider resources.”
Billing itself as the original boutique, the 20-year-old Smoke & Mirrors has seen its business treble in size in the last four years with a £19m+ turnover and a staff of 250.
“We’ve had to focus on not losing that boutique feel while overseeing a period of terrific growth,” says Szabo. “We have to manage growth to retain the personality of the company.”
That includes last year’s relocation to a new five-floor Poland Street home. “We’re breaking out of boutique and into the big league, but we’ve got to make sure our clients have that boutique feel – the commitment you give to their projects.”



Big or boutique? The directors’ perspective
“Directors want to surround themselves with a team they can trust and if the relationship you have with an artist is a good one then the size of the house is irrelevant,” says David Rosenbaum, LA-based director at Humble. “However, with budgets getting smaller it’s becoming more and more difficult to justify spend on VFX, so there’s something to be said for smaller facilities because they can usually match your budget.”
Having graduated from Digital Domain, Rosenbaum disagrees that the culture of giant
VFX shops is necessarily corporate. “Nevertheless, if you choose a big house there is a higher chance you may not be getting their ‘A’ team,” he says. “You may get their ‘B’ or ‘C’ team because other directors or clients take precedence over you.
“Directors are selfish beasts who want to know we’re the only ones in the room even though we realise we’re not. Since boutiques don’t have the structure to support that many jobs there’s an advantage in going there to get their ‘A’ team all of the time.”
When director Christopher Riggert started out he was attracted to the best known brands, but over time his opinion changed.
“I wasn’t making deep relationships with the people in the organisation,” he says. “Your sole contact is with one or two heads of department then you are pushed around internally. I found it very frustrating because if something starts to go wrong and you are on a timeline crunch you need direct access to operators. I’ve subsequently sought more boutique experiences because I want to know who the operators are. Ultimately
it comes down to the person making contact with the work and their commitment to it.”
Repped by Biscuit Filmworks and based out of LA, Riggert tends to use Rock Paper Scissors for editing and its sister VFX boutique a52. “I could still be working on an edit while a52 are blocking out 3D, so the workflow makes sense. And they know they have some allegiance from me.” He adds, “I’m not scared to work with people remotely in [Riggert’s native] Australia from here. We no longer have to be sitting in the same room.”

The view from the US
Having spent more than half its 22 years as a boutique, New York’s Click 3X has broadened into a creative digital studio and design company with around 70 staff. Partner Jason Mayo says its recent planned expansion is part of a macro trend in the US away from smaller shops.
“There’s a move toward places that can do everything in one package,” he explains.
“Those with smaller places might be able to handle specific jobs for less money, but they can’t offer all the things a client might want.”
He thinks the trend toward specialisms in VFX, graphics or editing may be reversing because deliverables are changing. “Outside of the TVC, clients want rich media content for digital ads, or pre-rolls, a Facebook game, versions of video for YouTube,
Instagram and Vine. People are trying to get twice the work done for the same amount of money and with fewer people it’s almost impossible to manage.”
While production companies are adding graphics and VFX arms or editing departments, edit boutiques are adding Flame and graphic design. Click 3X has appointed 10 directors and owns shooting stages as well as suites
for VFX, design, grading and digital. “Five years ago it would have been impossible to take on the size of job we can now,” Mayo says.
“Boutiques still work because the talent is more diverse and the software investment is attainable now. But you have to be very committed to a specialism and be selective in your work rather taking everything on at the same time.”


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