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What would happen if I did an animation that is going to be viewed from a dvd in a television, and did not NTSC color proof it?
it wont look right
If it is not being broadcast nothing tragic will happen. It'll still play.
Video has a relatively limited, and somewhat muddy color range. NTSC is essentially color information transmitted through a black and white signal. This was done so people who owned black and white sets wouldn't have to buy color ones.
What this means 50 years later is that the NTSC color spectrum is out of whack. I'm sure a good web search will find the exact information, but, for example, the signal is composed of something like 68% green.
Ultimately, your reds may "blow out". Bleeding into the other colors and your yellows may wash out to white or glow.
The worst possible thing is that your whites could be too hot causing you frame to skip. This is highly unlikely.
No matter what, your color on TV will not look as good as it does on your computer monitor. But working with NTSC in mind can make it look better than it would if you ignore the technical limitations.
If you are using Flash, download this free NTSC color safe palette:
Flash Character Packs, Video Tutorials and more: www.CartoonSolutions.com
SInce the tools are there for anyone to make and distribute their work, it seems to me the problem is creating a business model that will actually generate profit so you can live and pay overhead. How do most people who have started their own studio do it? The sites I have been to usually showcase their work free of charge unless you want extra downloads or the actual DVDs. How do they make money? Is it from ancillary product sales?