Monday, December 28, 2009

It's the Tax Break, Stupid

Universal-NBC GE (soon to be Universal-NBC Comcast) has been a feeble player in the animation game. Universal Animation Studios essentially closed shop this month, and the company has been a non-presence in theatrical animation, as well as a chronic under-performer in live-action.

Now, of course, it's done a deal with Chris Meladandri and is partnered with Mr. M.'s Illumination Entertainment to make CGI animated features. For a period of time I wondered where Illumination was going to set up its studio, but then I found out the business model: Illumination works out of offices in Santa Monica, freelancing development and doing productions overseas.

It's first animation feature, Despicable Me was produced in France. Not India. Not China. But the land of champagne and camembert. And why is that? ...

... 3D toonpic "Despicable Me," which is produced by Chris Meledandri, [is] among the first five recipients of France's tax rebate for international shoots.

Paris VFX house Mac Guff handled animation modeling, texturing, rendering and compositing on "Despicable Me," which is the first film from Universal's family film unit Illumination. .

When you are a pretender to animation's throne and not named Pixar, DreamWorks or Blue Sky, you have to watch your pennies, especially when you're dealing with a tight-fisted conglomerate like General Electric.

So Illumination-Universal will get its big French rebate, and the picture will roll out next Fall, and we will see if Mr. Meladandri's lower rent business model results in profits for Universal's shiny new animated feature.

If it does, other companies will likely sniff after the same sort of game plan. And if it fails, there will be small interest in replicating Illumination's blue print.

18 comments:

Anonymous said...

It's first animation feature, Despicable Me was produced in France. Not India. Not China. But the land of champagne and camembert. And why is that? ...

True, but I would argue that its also because the French can fucking animate. Time and time again, people are blown away by the students and films Goeblins produces every year.

Havent seen anything close to that from India or China.

Anonymous said...

If there were no tax breaks, there would be little reason to do it in France. Don't kid yourself.

Anonymous said...

Chinese animators did a damn good job on Astro Boy.

As for Despicable Me, the characters are absolutely hideous, and the story seems repugnant, judging by the trailers.

More of THAT kind of movie is going to lead to audience wariness and weariness of CGI movies in general, which could hurt the entire industry, even Pixar.

Anonymous said...

The Goeblins students make things move smoothly, but they've got a long way to go to convince anyone they can do CHARACTER animation. They've not done it well yet.

And the animation in Astroboy was about as good as the average he-man cartoon. That is, not very good. And characterless.

Anonymous said...

This is nothing new.

Been going on for awhile and more and more animation will continue to stream out of La and America. Heck thereba bunches on Americans training their replacements right now in just about every corner of the globe. You can live anywhere

Anonymous said...

Imagi outsourced to China? Sorry if I appear clueless. I dont know much about Imagi...

Anonymous said...

"Been going on for awhile and more and more animation will continue to stream out of La and America. Heck thereba bunches on Americans training their replacements right now in just about every corner of the globe"

Hopefully they'll be able to speak better English than you "write" it. And no doubt what you say is true. Unless you want GREAT animation.

Anonymous said...

Variety (I'm sure we're all aware of that venerable showbiz journal) said that the animation in Astro Boy was "stunning" and "as about as close to Pixar as you can get".

And characterless animation sure as hell wouldn't make me tear up, as that movie did to me in certain scenes.

So stuff it, Anonymous #4.

Anonymous said...

Oh god, you're the fanatical Astro Boy fan who keeps posting here.

Wow.

Well...have fun with that.

Anyway, I don't think there's much doubt that France has the talent. They have superb animators. I'm not quite sure how American producers feel about their 32-hour workweek, or their 6-week annual paid leave. But yeah, it's only a matter of time before a great deal of feature work is done outside of America, as it's already happening.

Anonymous said...

Would be great if we had some sort of organization that could keep U.S. production companies from farming out jobs overseas.... Oh....wait a minute...

Anonymous said...

Well, defending a good animated film is my way of supporting the hard work its talented animators put into it.

Yeah, I DO have fun with that.

"He-Man"...sheesh...

Anonymous said...

outsourced is outsourced, whether its france or mongolia; it's less american jobs. how come any other factors should come into it as far as one's views towards it?

Anonymous said...

"Would be great if we had some sort of organization that could keep U.S. production companies from farming out jobs overseas.... Oh....wait a minute..."

-----

Yep.

Just pay and obey, pay and obey ... don't think about it too hard. Pay and obey. Good lad .

Steve Hulett said...

Would be great if we had some sort of organization that could keep U.S. production companies from farming out jobs overseas.... Oh....wait a minute...

Unions regularly agitate for job protections, and or course there clout is ENORMOUS.

They represent 7-8% of the workforce in what we call the "private sector."

For around a century, having a "protective tariff" was a core tenet of the Republican Party. The GOP threw that one over long ago.

Anonymous said...

So...what can we do about it? Honestly? I hate seeing jobs go overseas. I dont mind other countries making films (more power to them), but I hate seeing American films being SENT overseas to be produced...

Anonymous said...

"For around a century, having a "protective tariff" was a core tenet of the Republican Party. The GOP threw that one over long ago."

---

Well, maybe since the GOP isn't the party officially in power anymore the present political party in power can enact some sort of protective tariff to help American workers ? Just a thought.

Or maybe the Republican leadership and the Democratic leadership aren't so far apart on issues like off-shoring American jobs , since they both gave up on protecting American jobs a long time ago. (NAFTA and GATT came in on Clinton's watch) . Both major parties in this country are beholden to the multinational corporations.

Anonymous said...

It's always funny when people want for themselves what they don't want for anyone else. Name a country where domestic production is completely protected. Name a country that doesn't consume vast amounts of animation created or produced in the USA.

And these "U.S. production companies" which should be only allowed to hire American workers - how many of them are really U.S. companies, and how many are multi-national conglomerates?

But hey, don't let those inconvenient facts keep you from blaming others.

My 2 Cents said...

"But hey, don't let those inconvenient facts keep you from blaming others."

What "facts?" Those are debating society points. We know the difference between and American film and a foreign film, no matter what the size and scope of the corporation that produces it. The point isn't blame, it's jobs and what to do about it.

We now know that nothing is gained, economically speaking, when jobs are lost,especially on a massive scale. The best way to combat this, IMHO, is to fight fire with fire. Give the production companies the same incentives and tax breaks they get overseas to keep production here. It will be a short term loss, (maybe) but a long term gain; a healthier livelier economy with far less need for stimulus money or entitlements.

Site Meter