animation opportunity 2009

Hollywood and Animation: An Intensive forCG Artists on the Business of CG-Animated Filmmaking

Lance L. Young

A Weekend Seminar

Animation2009

Opportunity

Strategies to CreatePremium CGI Animated

Films

The Animation Opportunity 2009

About The Seminar

This Two-Day Intensive offers an in-depth look at the inner workings of the CG-AnimationStudio in Hollywood. It focuses entirely on development and production and targets studentswho are looking for a career making CG-Animated Features. Presented by a veteranexecutive who spent six years at DreamWorks and consulted internationally in the field, theseminar offers a rare and candid look at how key decisions are made at all levels. It beginsby analyzing why there remains only two CG Studios, Pixar and DreamWorks, whoconsistently produce successful features. Why have all but two Major Distributors failed tosource and distribute these films which are the least risky and most profitable genre of alltime? Over the two-day seminar, these questions will be answered along with an in-depthstudy of studio operations, how management interfaces with the artistic and technical staff,and the key elements that lead to success and failure. How these studios source theirideas, develop them with writers, and ultimately green light them is revealed along with itsconsiderable cost. The digital pipeline will be analyzed to give the student a thoroughunderstanding of the role of junior and senior artists and programmers and how theyeffectively interface together. The Animation Budget will be demystified including abreakdown of the pay rates for each discipline and exactly how a movie budgeted between$65-80 Million inevitably ends up costing well over $120 Million. Changing technologystrategies, legacy costs, and the 3-D revolution (This time it’s here to stay!) are all analyzedin depth. Most importantly, the Seminar will give each student new awareness on how tonavigate the “people and politics” that govern these large institutions.

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About the Presenter:

Lance L. YoungLance L. Young is an entertainment executive and acclaimed writer/filmmaker withover 20 years of industry experience. Most recently he has served as a consultantand advisor (both live action and animation) to large and small media companiesaround the world. Formerly, Mr. Young was Head of Creative Affairs andProduction for DreamWorks Animation from 1999-2007. At DreamWorks, Mr.Young maintained oversight in development and production of films from inceptionthrough release. During his tenure DreamWorks Released 8 films including Shrek,Shrek II, Shark Tale, Shrek the Third, Bee Movie, and Madagascar. Before that,Mr. Young was a writer on several produced films and the writer/director Bliss, acritically acclaimed love story for Columbia Pictures. He began his career atParamount Pictures and Warner Brothers where he served as a senior executive onover 30 major motion pictures including Top Gun, The Hunt for Red October, Daysof Thunder, Black Rain, The Pelican Brief, and Dennis the Menace. Mr. Younggraduated from Harvard Business School and the USC Cinema/Television programwhere he subsequently taught as a professor in the Peter Stark Program.


The Seminar — Table of Contents

DAY 1: The Structure & Economics of the Premium CG-Animation Studio

Introduction

Definition: What is a “Premium” CG-Animation Studio

Distribution Capacity and Why There Remains a Shortage

CG-Studio Economics

Animation Studio Reporting Structures

DAY 2: Managing Content, Process, and TechnologyContent Strategy: The Narrow Parameters of StoryContent Sourcing: The Animation Development ProcessThe Production Schedule with Multiple PipelinesManaging the Front End: The Workshop EnvironmentTechnology Strategies and IssuesManaging the Back End: Process and FlexibilityThe Premium CG-Animation Budget: Money & Man HoursThe 3-D Evolution: All The Rules ChangeRecruiting and Training

An “Artist 1st” CG–Animated Studio Strategy The Toughest Business in The World?

Examples of Interactive Slides


Introduction

“Premium” CGAnimation

Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution

Recruiting &Training

Premium CG-Animation

The Universe of all “Premium” CG films and their TheatricalBox Office Revenues

$ Millions

Introduction


Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution


Shortage of Capacity is Based on:(d) Diverging Management Outlook

Lower

6-8 Years

4 Years Minimum

Long Term Contracts and Freelance

Executive/Producer/Director

3-4 Years

Low Tech and High Tech

Internal

2 CG-Animated Films

Animated material, live-action & animationtalent relationships, talent management,pipeline process management

Live-action material, liveaction, talent relationships,talent, management

EXECUTIVE EXPERTISE

12 - 15 Live Action FilmsANNUAL PRODUCT GOAL

Largely ExternalPRODUCT GENERATION

Low TechPRODUCTION PROCESS

3-4 MonthsPRODUCTION TIMELINE

Director/StarPRODUCTION CONTROL

FreelancePRODUCTION TALENT

1 YearPRODUCT HORIZON

Extremely HighTALENT PARTICIPATION

1 YearPORTFOLIO HORIZON

CG-animation productionLive-action production

Distribution conglomerate

Major motion picture studio

Studio head (live action)

Introduction


Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution


($ in millions) A B C D E F G

REVENUES

Domestic Theatrical 60.0 90.0 105.0 112.5 120.0 150.0 180.0

Int'l Theatrical 60.0 90.0 112.5 127.5 135.0 180.0 210.0

Network Television 9.0 12.0 13.5 15.0 16.5 18.0 18.0

Domestic Syndication 5.3 6.8 7.5 7.5 7.5 7.7 7.5

Int'l Free TV 7.5 9.0 10.5 12.0 13.5 15.0 16.5

Domestic Video/DVD 157.5 202.5 229.5 244.5 259.5 324.0 390.0

Int'l Video/DVD 75.0 97.5 111.0 120.0 129.0 168.0 216.0

Domestic Pay TV 6.0 7.5 9.0 10.5 12.0 13.5 15.0

International Pay TV 6.0 6.8 7.5 9.0 9.8 10.5 10.5

Pay-Per-View 4.5 6.0 9.0 9.0 9.0 9.0 9.0

Non Theatrical 3.0 4.0 4.5 5.3 5.3 5.3 5.3

Merchandising 3.0 3.0 3.0 3.0 5.0 5.0 5.0

Total 396.8 535.0 622.5 675.8 722.0 906.0 1,082.8

DISTRIBUTION COSTS

Domestic Media 60.0 67.5 75.0 82.5 90.0 97.5 105.0

Domestic Print 11.3 11.3 12.0 12.8 12.8 12.8 13.5

Domestic Other 1.5 1.8 2.3 2.3 2.3 2.3 2.3

International Media 30.0 37.5 37.5 42.0 45.0 52.5 60.0

International Print 9.8 9.8 10.5 10.5 10.5 11.3 11.3

International Other 1.8 2.4 3.0 3.0 3.0 3.2 3.2

Dom. Video/DVD 30% 22.5 29.3 33.3 36.0 38.7 50.4 64.8

Int'l Video/DVD 35% 2.1 2.6 3.2 3.7 4.2 4.7 5.3

TV Costs 0.9 1.1 1.4 1.4 1.4 1.4 1.4

Total 151.8 178.1 199.1 215.0 228.8 256.9 287.6

DISTRIBUTION FEE 12.5% 49.6 66.9 77.8 84.5 90.3 113.2 135.3

CG-Animated Film UltimatesMadagascar

“TheGold”

Introduction


Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution


Old Disney

Children (G)

Adult (PG-13)

Comedy DramaDWS

Pixar

MarketingEnvelope

The Marketing Envelope

The CORE AUDIENCE is kids ages 5 to 12. Always.Period.

Achieve CROSSOVER to older audiences with TONE, orby dealing with FAMILY ISSUES. NEVER make a movie with solely a child protagonist.

COMEDY is King. Both physical and verbal humor.

Introduction


Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution


One Facility = Two Pipelines

Shared Design and Story Resources

Each Production team is unique

Film Studio not Film Factory

Pipeline #1:

StoryboardingPre-VisualizationModeling and RiggingLayoutAnimationLighting and EffectsEditorial (Primary)

Pipeline #2:

StoryboardingPre-VisualizationModeling and RiggingLayoutAnimationLighting and EffectsEditorial (Primary)

Administrative and Key Creative Offices:

AdministrationStory DevelopmentVisual Development

Introduction


Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution


Extended CG Production Schedule

Lighting

Sound Effects

Music Score

Final Delivery

Layout

Animation

Visual Development

Modeling

Character Rigging

Voice Recording

Screenplay

Storyboarding

Treatment

Development Pre-Prod. Production Post-Production

Variable Year 1 Years 3 - 3.5

Pre-Visualization Team

Extended ScheduleExtended Schedule

OvertimeLoad

Introduction


Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution


Pre-Visualization Teams

Tim

eTi

me

Pre-visualization TeamsPre-visualization Teams

Modelers and char. riggersModelers and char. riggers

Layout (cinematography)Layout (cinematography)

DigitalDigital

VisualVisual designers/char. designersdesigners/char. designers

AnalogAnalogIdeaIdea

3 page story3 page story

Final 3 page storyFinal 3 page story

Launch treatment writerLaunch treatment writer

1st draft treatment1st draft treatment

Approved treatmentApproved treatment

1st draft screenplay1st draft screenplay

Working screenplayWorking screenplay

1st screening1st screening

2nd screening2nd screening

3rd screening3rd screening

4th screening4th screening

WriterWriter

Storyboard artistsStoryboard artists

Executive / ProducerExecutive / Producer

Director(s)Director(s)

Introduction


Shortage ofCapacity

Economics

Reporting

Content

Schedule &Pipelines

The Front-End

Technology

The Back-End

The Budget

3-D Evolution


The 3-D Cube

StereoScopicWindow

+ 50 PIXELS (STRESSFUL)

The Screen

+ 25 PIXELS (COMFORTABLE)+ 15 PIXELS (SAFE)

- 45 PIXELS (SAFE)

- 75 PIXELS (COMFORTABLE)

- 250 PIXELS (STRESSFUL)

DEPTH

BRACKET

animation opportunity 2009

Entertainment & Humor