I am Hollywood

Chapter 339: Chapter 340: Monopoly Proposal



[Chapter 340: Monopoly Proposal]

John Lasseter and Ed Catmull were dedicated to creating 3D animation, both sensing the promising future of this animation form. When they heard that Eric had confidence in the future of computer-generated effects, neither could think of any rebuttal. After all, the 3D animation they were advocating had yet to yield results, while Eric's vision in film had already been validated through several movies.

After discussing for a while, Eric laid out a detailed plan in front of Ed Catmull, who began to realize Eric's intentions. Although he was currently working on 3D animation, it was still a form of computer-generated effects. Ed had initially worked at Lucasfilm, where he was responsible for the computer-generated scenes in Star Wars. It was evident that Eric hoped he would lead this new team.

John Lasseter recognized this as well, looking worried. Having collaborated for so long, their teamwork had become quite seamless. If Eric moved Ed to lead the computer effects department in Digital Domain, what would happen to Pixar?

"Eric, you've got to understand that while most of the technological issues with Toy Story have been resolved, Pixar still relies heavily on Ed..."

Eric nodded, acknowledging John's concerns. "I understand your worries, John. I don't mean for Ed to leave Pixar; I merely plan to establish a technical team dedicated to researching computer-generated effects and engineering the related software. Ed is not only an exceptional computer technology expert but also more familiar with computer-generated effects technology than most of Hollywood's special effects personnel. After all, he's been involved with these effects for over a decade. That's why I hope he can serve as the Chief Technology Officer for Digital Domain, leading this team."

While Eric spoke with John Lasseter, Ed Catmull had been furiously contemplating the implications. Now hearing Eric mention his role, he felt a spark of excitement.

From Eric's proposal, Ed sensed Eric's ambition regarding computer-generated effects. Although he remained skeptical about the potential of the plan Eric presented, that did not hinder his understanding of its grand scope. If the trend in visual effects developed in the direction Eric suggested, then Digital Domain, which would prioritize computer-generated effects research more than any other special effects companies, would undoubtedly become an industry leader.

Moreover, there was the initiative to engineer the software solutions for effects processing. Even though this plan would require substantial manpower and resources, once it accumulated to a certain level, Digital Domain would undoubtedly dominate the effects industry, holding an unshakeable position.

When a newcomer entered the visual effects industry, facing a problem that was already addressed by Digital Domain's detailed software solutions, they would have to choose between assembling a tech team of dozens or even hundreds to re-develop a solution or directly purchasing the software from Digital Domain.

The answer was obvious.

After a moment of reflection, noticing John Lasseter's expression, Ed Catmull, who had initially intended to agree, said, "Eric, I hope that this technical research team of Digital Domain can have its headquarters in San Francisco. This way, I can balance my responsibilities at Pixar, and while Los Angeles is the heart of the film industry, San Francisco, with Silicon Valley, can attract the top computer talent."

Eric nodded, "Of course, that was my intention. We could even base the team in Emeryville, perhaps becoming neighbors with Pixar."

They spent a few more hours discussing the details, leaving the specific plans for Stan Winston and Ed Catmull to work out.

...

Once Eric left Pixar and got into that Chevrolet van, he let out a sigh of relief. Another important piece was in place. No one understood the evolution of visual effects better than he did; computer-generated effects were set to become the mainstream of the effects industry. Even Industrial Light & Magic, which originally thrived on model effects, had closed its model effects department -- responsible for many of the virtual characters in Star Wars -- to focus primarily on digital effects.

Moreover, his insistence on creating engineering solutions for effects software was not a rash decision. It stemmed from a well-thought-out understanding of another trend within the effects industry.

After the turn of the century, with the rapid advancement of computer technology, the entry barrier into the visual effects industry had dropped significantly. Companies around the globe began to spring up like mushrooms after a rainstorm.

In this context, the survival environment for the former giants of the visual effects industry became increasingly grim. To compete with Hollywood's established effects giants, other states in the U.S. and even countries overseas began offering significant tax rebates and other financial support for effects companies.

Under such fierce competition, classic Hollywood effects companies began to fold one after another.

Eric had no intention of letting the fate of John Lasseter mirror that of that time line. He also didn't seek to rescue the entire effects industry, as, from a filmmaker's standpoint, his economic interests often conflicted with those of the effects companies.

Eric's plan was to maintain a technological edge over other effects companies through an accumulation of knowledge and an engineering approach to commonly used effects solutions. Finally, by selling both the solutions and software, he aimed not only to keep Digital Domain at the absolute forefront of the industry but even hoped it could become an oligarch in the effects sector, establishing a technological monopoly.

This proposal wasn't without feasibility. After all, computer-generated effects were just beginning to take off, and the big-name effects companies remained the aristocrats of the industry. If a film company wanted to produce a project with special effects, their options were somewhat limited. In this context, Digital Domain would undoubtedly have no shortage of special effects projects; as long as they were willing to invest, they would accumulate plenty of solutions.

Years down the line, when the barrier to entry in the effects industry lowered, those latecomers would encounter many of the required technologies already developed into mature software solutions by Digital Domain. These newcomers would surely opt to purchase the software rather than invest heavily in developing their own solutions. What? You want software that we don't have? Don't worry, we have a strong technical team. For the right price, Digital Domain can quickly and affordably develop the technology you need. It's much cheaper than trying to maintain your own tech team, isn't it?

Like many industries, once a monopoly is formed, it is very difficult to break.

In the past, Industrial Light & Magic possessed this kind of potential, especially in the early '90s when computer-generated effects began to flourish. At that time, Industrial Light & Magic dominated the special effects industry, and any of the seven major film studios wanting top-notch effects would turn to them first. Unfortunately, after the success of the Star Wars trilogy, George Lucas acquired more wealth than he could spend in a lifetime and lost his ambition to transform Industrial Light & Magic into a giant.

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