Special Effects & Other Video Post-Production Services
Description
Companies in this industry provide specialized motion picture or video post-production services, such as editing, film/tape transfers, subtitling, credits, closed captioning, animation and special effects. Major companies include Deluxe Media, and Disney's Industrial Light & Magic (all based in the US), as well as Animal Logic (Australia), Cinesite (the UK), Reliance MediaWorks (India), Sony Pictures Imageworks (Canada), and Technicolor Creative Studios (France).
The global special effects services market size is forecast to reach about $19 billion by 2033, at a compound annual growth rate of 11.6% during 2024-2033 period, according to Business Research Insights. Canada has incentives for the development and screen production, according to Canada.ca. While countries in Europe such as France and the UK have video game development tax incentives as well.
The US post-production services and other motion picture and video industries includes about 2,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Demand is driven by the film and video industry, which depends on consumer spending and leisure time. The profitability of individual companies depends on creative and technical expertise, accurate bidding, and a steady volume of work. Large companies have advantages in breadth of services and timely delivery of complex projects. Small companies can compete effectively by providing specialized services and focusing on local markets and lower-cost projects.
The US industry is concentrated: the top 50 companies account for about 60% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include postproduction services for audiovisual works accounting for about 20% of the industry revenue. Other services include nonlinear editing (about 20%), linear editing (about 15%), and visual effects (about 10%). In contrast to special effects (also known as practical effects), which are recorded by a camera and achieved through make-up, prosthetics, or other physical materials, visual effects (VFX) are completed in post-production, through digital manipulation via a computer.
Special effects and other post-production services providers depend on the expertise and skills of artists, technologists, model makers, supervisors, PR/marketing specialists, and producers. Professionals may contribute to a wide range of entertainment fields, including film, television, commercials, music videos, games, and new media.
In the motion picture and TV production industries, demand for VFX services is rising, driven by growing audience preference of genres that are heavy on special effects, such as action, adventure, science-fiction, and fantasy. The industry is also seeing a rise of effects in genres that have not historically been effects-heavy, such as comedy and drama, in part due to production houses seeking to reduce costs.
The majority of top-grossing feature films at the US/Canada box office were studio-produced, high-budget projects, including animation and special effects (VFX)-driven films, according FilmL.A.'s 2020 Feature Film Production Study. On many films with budgets over $150 million, more than half of the jobs go to VFX.
The global special effects services market size is forecast to reach about $19 billion by 2033, at a compound annual growth rate of 11.6% during 2024-2033 period, according to Business Research Insights. Canada has incentives for the development and screen production, according to Canada.ca. While countries in Europe such as France and the UK have video game development tax incentives as well.
The US post-production services and other motion picture and video industries includes about 2,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Demand is driven by the film and video industry, which depends on consumer spending and leisure time. The profitability of individual companies depends on creative and technical expertise, accurate bidding, and a steady volume of work. Large companies have advantages in breadth of services and timely delivery of complex projects. Small companies can compete effectively by providing specialized services and focusing on local markets and lower-cost projects.
The US industry is concentrated: the top 50 companies account for about 60% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include postproduction services for audiovisual works accounting for about 20% of the industry revenue. Other services include nonlinear editing (about 20%), linear editing (about 15%), and visual effects (about 10%). In contrast to special effects (also known as practical effects), which are recorded by a camera and achieved through make-up, prosthetics, or other physical materials, visual effects (VFX) are completed in post-production, through digital manipulation via a computer.
Special effects and other post-production services providers depend on the expertise and skills of artists, technologists, model makers, supervisors, PR/marketing specialists, and producers. Professionals may contribute to a wide range of entertainment fields, including film, television, commercials, music videos, games, and new media.
In the motion picture and TV production industries, demand for VFX services is rising, driven by growing audience preference of genres that are heavy on special effects, such as action, adventure, science-fiction, and fantasy. The industry is also seeing a rise of effects in genres that have not historically been effects-heavy, such as comedy and drama, in part due to production houses seeking to reduce costs.
The majority of top-grossing feature films at the US/Canada box office were studio-produced, high-budget projects, including animation and special effects (VFX)-driven films, according FilmL.A.'s 2020 Feature Film Production Study. On many films with budgets over $150 million, more than half of the jobs go to VFX.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Pricing
Currency Rates
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