Sandra Walters and Mark Gravas of Kapow Pictures believe creative and financial collaboration go hand-in-hand.

Computer technology has transformed the animation industry, and it’s not just because of flashy computer-generated imagery. Advances and standardization in technologies such as telephony may have more impact on long-term industry economics than the CG images currently drawing box office dollars. These changes facilitate collaboration with partners from around the globe. In this smaller world, the term remote production takes on a far more significant meaning as more projects are produced in geographically separate facilities and new business models are developed.

Business reality drives animation producers to consider remote production of their footage despite the logistical difficulties this presents to the creative team and to quality control. Three business models are emerging to make the most of remote production: outsourced, partnered and distributed production.

Outsourced Production
There are many incentives for outsourcing production work, but the primary reason is to reduce production cost. Foreign subcontractors are often less expensive, as they maintain studios in countries with lower-wage structures. Furthermore, unless a producer has a continual stream of work, subcontracting reduces the burden of carrying production crew overhead on a budget.

Threshold found bandwidth an issue when transmitting data for its Foodfight! feature. © Threshold Digital Research Lab.

An outsourced production implies that subcontractors produce most or all of the animation. Sometimes components of a production can be outsourced, but this practice is more easily accomplished through a highly standardized process. The lack of standardization in CG technology and processes means that traditional animation represents the bulk of outsourced work. In spite of the hurdles, an increasing number of computer animation studios are looking to make subcontracting a viable production method for the CGI segment as well.

Despite labor costs, remote production locations may also be chosen for other financial reasons, such as currency exchange rates. Also, governments may offer subsidies, grants and tax credits to attract outside business to help grow their domestic industries. These government financial mechanisms essentially provide the same result — creating more production for less direct investment.

While financial consideration is often central to subcontracting work, other criteria may also affect the decision to outsource a project. For instance, production talent may be unavailable in a geographic area. Or a certain crew or studio may be better positioned to execute the work.

Partnering — Another Perspective
Sometimes outsourcing animation production falls short of making a project financially viable. Internationally, animated project budgets are shrinking. Making a project into reality may mean financial collaboration in addition to creative collaboration. As director Mark Gravas of Kapow Pictures notes, “Digital remote [production] goes hand-in-hand with finding your partner.”