IBC
While UK VFX and animation houses operate in the almost certain knowledge
that Brexit will dent their global competitiveness, facilities in Europe expect
to benefit.
European facilities
with well-established track records with Hollywood studios are primed to ramp
up capacity should expensive visas with unrealistic minimum salary thresholds
significantly add to UK facility operating costs.
“We expect more work which would’ve gone to
the UK being assigned to EU-based VFX houses after Brexit,” predicts Volker
Woerz, business development at Prague studio Dazzle Pictures.
Germany’s Rise FX
and Scanline VFX and Buf Compagnie in Paris, all with regular shot orders from
Disney, are the most likely to benefit in terms of film VFX.
Outside of London,
Amsterdam is Europe’s main creative hub for commercials finishing. If, as is
predicted under a no-deal Brexit, the UK’s economy nose dives so too will the
country’s advertising sector, in which case brands can be expected to shift
their budgets elsewhere.
Any boost in
investment will also increase the opportunities for smaller houses, facility
start-ups and will spread the talent pool.
No-one, however,
expects an exodus of work from London nor a brain drain of creative talent.
That’s not to say there will be no displacement of projects with artists who
are already heading overseas.
“We’re getting
calls from talented heads of VFX and CG at several companies in London, and
especially the ones with young families,” says Halbo van der Klaauw, founding
partner at creative design studio Ambassadors.
“It’s the same
across all departments, from copywriters to illustrators to developers. They
all just want to leave. It’s really that simple. I don’t know if that’s
necessarily Brexit, or the 30% tax ruling, or just the way of life in
Amsterdam. But it’s like Amsterdam is becoming Soho.”
Will Jeffers, head
of 3D, at Ambassadors, reports a much higher percentage of “senior,
experienced” VFX talent applying for jobs since the June 2016 referendum. “It
seems like European VFX artists currently working in the UK want to check out
what is going on in Europe and if the grass really is greener on the other
side,” he says.
Jiri Mika, managing
partner at Prague studio PFX, hopes that “less talent will leave for the UK for
work and will stay in the Czech Republic,” while Berlin-based VFX artist Mikko
Ruostila says that “since the EU makes everything easier in many ways, I’d expect
the already strong film industry in Berlin to gain popularity among workers.”
Staffing issues
Dazzle Pictures
worked on 100 shots for Fox feature Assassin’s Creed (2016)
and was outsourced compositing, rotoscoping and matchmove work by UK shop
Outpost VFX for 2018 horror Strangers: Prey at Night.
Woerz says the
company is receiving more enquiries from producers and VFX talent about work as
a result of Brexit and adds, “we see a tendency that partners we work with in
the UK are very hesitant in sending work to us at the moment due to high
uncertainty on their end.”
A major concern for
Amsterdam-based film production company PostPanic is staffing, in particular
that of the British citizens it already works with. PostPanic has a director’s
roster and its own in-house specialist VFX and CG teams. It employs thirty people
primarily from the EU as freelance, contract and permanent staff.
“Our staff are very specialised, difficult to
source and recruit,” explains Ania Markham, executive producer and strategy
partner. “A large part of our talent pool are British directors, designers and
producers (two of the firm’s managing partners including Markham are British).
Changing the status of a freelancer to non-EU has an impact on their flexibility
to come and work here in Amsterdam on shorter or longer term projects.”
UK staff will need
working visas or be employed as part of the non-EU highly skilled migrant
scheme which requires a very high minimum annual wage.
“It’s going to hurt
us but we can still search in the EU,” Markham adds. “The impact on British
freelancers is going to be dramatic.”
Many VFX and
animation artists worked in Soho before returning with that experience to set
up shop and produce high quality international work outside of the English, US
and Canadian mega studios.
Stockholm’s
Important Looking Pirates is a prime example. Its work since founding in 2007
includes the opening shot of Cantonica, the casino planet in Star Wars:
The Last Jedi and 100 shots for Jurassic World: Fallen Kingdom (both
via ILM) as well as VFX for Tom Clancy’s Jack Ryan, Lost in Space and Westworld.
“It will be
interesting to see what happens if more European VFX artists return home and
take the experience they have gained working at big studios in Soho with them,”
Jeffers says.
Amsterdam: the new Soho?
Visa hurdles alone are not enough to significantly undermine the UK’s post-production dominance. London’s ring of world class soundstages and the central lure of Soho have long been a magnet for US executives, directors or VFX supervisors who appreciate the thriving set-to-post culture and the proximity of many boutique facilities.
Visa hurdles alone are not enough to significantly undermine the UK’s post-production dominance. London’s ring of world class soundstages and the central lure of Soho have long been a magnet for US executives, directors or VFX supervisors who appreciate the thriving set-to-post culture and the proximity of many boutique facilities.
“Having worked in
London VFX houses and at Ambassadors for the past six years, it’s pretty clear
the Netherlands offers a better work/life balance,” counters Jeffers.
“Your 45-minute
commute on a packed Northern line is replaced by a quick bike ride through
Amsterdam, and if you’re working at a typically-sized Amsterdam studio of
around 100, you can have great personal creative input on a project too.”
Amsterdam is also
the home of Netflix EMEA headquarters which is currently recruiting for 50
staff and makes a virtue of its location “near the famous Museum Quarter and on
the edge of the historic Pijp neighbourhood….easily accessible by car, bike and
public transportation.”
Understandably,
no-one wants to suggest that people are swapping work to a facility for
practical reasons rather than being chosen as the right creative people for the
job.
Hollywood studios
themselves tend to locate work at a facility or region based on a range of
factors, the main two of which being depth of talent pool and access to
subsidies.
The pull of tax breaks
In the long-term, the most effective action the government could take to safeguard UK VFX jobs would be to make the UK comparable to other tax advantage regions.
In the long-term, the most effective action the government could take to safeguard UK VFX jobs would be to make the UK comparable to other tax advantage regions.
Montreal is the
strongest example with rebates as high as 40%, which is why four UK companies
(Cinesite, Framestore, MPC and DNeg) have established studios there in recent
years.
The stability of
the UK tax relief, in place since 2007 has directly contributed to establishing
the UK VFX industry. An amendment in 2014 further encouraged producers with a
VFX budget of 10%-25% of the total budget to come to the UK for their visual
effects.
In contrast,
Prague-based houses feel they are at considerable disadvantage even to
neighbours in Hungary, with far less competitive schemes on offer.
Animated
productions and VFX-intensive projects can tap 30% of a film’s spend in France
provided they pass a cultural test. This includes the involvement of French
companies, of French and European talent; and whether CG characters have a
European origin. Marvel’s Thor and Blade Runner 2049 qualified for this
incentive.
Germany is the most
aggressive in this regard, having recently beefed up its rebates for big budget
animation and VFX heavy shows. The new national rules administered by the
German Federal Film Fund (DFFF) untether VFX and animation from requiring a
physical shoot in the country to qualify for tax credits. Some German states
already offer VFX support in the form of 20% rebates, so productions working
with companies in Bavaria and Baden-Württemberg can now combine regional and
federal funding for rebates of up to 45%.
UK-based Cinesite
identified Germany as “a key market opportunity”, according to group chief
executive Antony Hunt. He led the acquisition of Munich-based Trixter last
August explaining that the DFFF incentive programme played a strong part in the
decision as well as its strong track record in high end feature VFX.
Founded in 1998 and
now employing 220 staff, it has worked on Captain Marvel, Black
Panther, Ant-Man, Thor Ragnarok and Spider-Man: Homecoming along
with episodes for Netflix’s Lost in Space and AMC’s The
Walking Dead.
Blurred borders
As shown by the fact that French multinational post services giant Technicolor owns The Mill and MPC - both with multiple international offices including HQ’s in London - as well as Paris VFX house Mikros Image, French animation producer OuiDo! and Toronto VFX studio Mr X, the lines are blurred.
As shown by the fact that French multinational post services giant Technicolor owns The Mill and MPC - both with multiple international offices including HQ’s in London - as well as Paris VFX house Mikros Image, French animation producer OuiDo! and Toronto VFX studio Mr X, the lines are blurred.
“Globalisation of
creative services is happening - no matter what happens with Brexit or some
countries’ foreign policies,” says Jeffers.
“Clients have a
thirst for high quality content and they’re willing to scout the world to get
good quality and good prices. It’s no longer just the big networks that can
offer round-the-clock production and high-speed networks either, so the small
guys are stepping up.”
Any industry
selling abroad – whether content, books or VFX - needs multilingual and
multicultural employees, argues UK law firm Taylor Wessing. Lawyer Louise
Popple’s analysis of Brexit’s impact concluded that “the UK’s VFX,
post-production and animation sectors are labour intensive and rely heavily on
EU talent.
She said: “With
countries like Canada already having strong VFX markets, there is clear scope
for jobs and talent to migrate. While Brexit might offer the opportunity to
up-skill the UK workforce, that will not happen immediately and there is a fear
that a skills gap will emerge, with the loss of jobs and talent.”
Such a state of
affairs is lamented by several respondents to IBC356 from European facilities.
Halbo van der
Klaauw’s response is typical: “When I was a young VFX artist and eager to go to
Canada to get that different, big studio experience, it was really easy. Same
for London. I hope that this mix and ease of movement will stay, as it helps
foster creativity. You get to see how it’s done professionally and creatively
on the other side and take that back with you. I feel sorry for students in
London who might want to get that European experience and be held back. It’s
incredibly vital to have the opportunity to work in different markets - there’s
a lot to learn from in terms of different country’s professionalism and
creativity.”
Three of the biggest European VFX houses
Paris’ Buf has been a fixture on the VFX scene since 1984 claiming work on The Matrix and Fight Club, more recently on Blade Runner 2049, Kingsmen and Netflix show American Gods. It employees 150 people and owns a second facility in Montreal.
Paris’ Buf has been a fixture on the VFX scene since 1984 claiming work on The Matrix and Fight Club, more recently on Blade Runner 2049, Kingsmen and Netflix show American Gods. It employees 150 people and owns a second facility in Montreal.
Rise FX was founded in Berlin in 2007 and now has 100 permanent staff
with satellite offices in Stuttgart, Munich and Cologne. Credits include
Marvel’s Iron Man 3, Doctor Strange, Guardian of the Galaxy and Black
Panther; Sony Pictures’ The Dark Tower and Guy
Ritchie’s The Man from U.N.C.L.E. 2019 work includes Dumbo,
Avengers: End Game, Netflix’ series Dark and Shazam (trailer
above).
Munich-based
ScanlineVFX founded in 1989, has studios in Montreal, LA, Vancouver and
Stuttgart and is noted for its photorealistic effects and simulation work
including natural phenomena like fire, smoke, and water on films such as the
disaster epics San Andreas, 2012, and Independence Day:
Resurgence as well as work on several major sequences in recent
blockbusters Bumblebee, The Meg, Black Panther and Justice
League on which it handled multiple hero characters and vehicle
assets.
