Chapter 340: Monopoly Concept
Chapter 340: Monopoly Concept
John Lasseter and Ed Catmull were both obsessed with producing 3D animation because they shared the same intuition about the promising future of this animation format. Hearing Eric speak so optimistically about the future of computer special effects, neither of them could think of any reason to refute him.
After all, the 3D animation they had devoted themselves to still had not achieved any tangible success, whereas Eric’s judgment in filmmaking had already been proven repeatedly through multiple films.
After saying all this, Eric placed the detailed proposal in front of Ed Catmull again, and Ed Catmull also realized Eric’s intentions.
Although he was currently working on 3D animation, 3D animation itself was still a form of computer CG special effects. Back when Ed Catmull had worked at Lucasfilm, he had been responsible for the computer CG scenes in Star Wars.
So it was obvious that Eric hoped he would lead this team.
John Lasseter naturally realized this as well, and concern appeared on his face. After working together for so long, the cooperation between the two had already become extremely seamless. If Eric transferred Ed Catmull to lead the computer special effects department at Digital Domain, then what would happen to Pixar?
“Eric, you have to understand—even though most of the technical problems in Toy Story have already been solved, Pixar still can’t function without Ed…”
Eric nodded.
“I understand your concerns, John. I have no intention of making Ed leave Pixar. I only plan to establish a technical team dedicated to researching computer special effects and engineering them into software systems.
“Ed isn’t just an outstanding computer technology expert—he’s also more familiar with computer special effects technology than most effects personnel in Hollywood. After all, he started working with computer special effects over ten years ago. So I hope he can concurrently serve as Digital Domain’s Chief Technical Officer and lead this team.”
While Eric and John Lasseter were speaking, Ed Catmull had been rapidly thinking things through in his mind.
Now that he heard Eric’s plans for him, he began to feel tempted.
From Eric’s proposal, Ed Catmull could sense Eric’s ambitions regarding computer special effects. Although he still had doubts about the future prospects of Eric’s proposal, that did not stop him from recognizing the scale of this enormous project.
If the future development of film and television special effects truly moved in the direction Eric described, then Digital Domain—which had begun focusing more heavily on computer effects research than any other effects company—would undoubtedly become the industry leader.
Moreover, there was also the software engineering plan for special effects solutions. Although that plan would consume enormous manpower and financial resources, once enough accumulation had been achieved, Digital Domain would unquestionably become the overlord of the special effects industry, and its position would be unshakable.
Because when a newcomer entered the visual effects industry and encountered a special effects problem, only to discover that Digital Domain already possessed detailed special effects software capable of solving that problem, would they choose to assemble a technical team of dozens or even hundreds of people to redevelop a solution from scratch, or would they directly purchase software from Digital Domain instead?
The answer was obvious.
After pondering for a while and noticing the expression on his partner John Lasseter’s face, Ed Catmull—who had originally already planned to agree—said:
“Eric, I hope the headquarters of this Digital Domain technical research team can be established in San Francisco. That way, I can still manage Pixar at the same time. Besides, although Los Angeles is the heart of the film industry, only San Francisco, with Silicon Valley nearby, can attract the top computer technology talent.”
Eric nodded.
“Of course. That was my plan from the beginning. Even setting the team headquarters in Emeryville would be fine. Maybe it could even become neighbors with Pixar.”
They spent several more hours discussing the details in broad terms. As for the concrete implementation, that would still need to be negotiated between Stan Winston and Ed Catmull.
After leaving Pixar and boarding the Chevrolet van, Eric finally let out a sigh of relief.
Another important chess piece had fallen into place.
No one understood the development trend of visual effects better than he did. Computer special effects would become the mainstream of future film and television effects.
Even Industrial Light & Magic, which had risen through model effects, shut down its model effects department—the department that had once created many of the virtual characters in Star Wars—after the start of the new century and shifted its primary focus toward digital effects.
Furthermore, his insistence on software engineering special effects solutions was not some impulsive whim. On the contrary, it was the result of careful consideration.
This plan originated from Eric’s understanding of another future trend in the special effects industry.
After the start of the new century, as computer technology rapidly developed, the barriers to entering the visual effects industry became lower and lower. Visual effects companies sprang up worldwide like mushrooms after rain.
Under such circumstances, the survival environment of the traditional giants in the effects industry became increasingly harsh.
In order to compete with Hollywood’s established special effects giants, other U.S. states—and even countries outside the United States—began offering generous tax rebates and other financial subsidies to effects companies.
Under this brutal competition, old Hollywood effects companies collapsed one after another.
Naturally, Eric had no intention of allowing Digital Domain to repeat the bankruptcy fate it had suffered in his previous life.
Nor did he have any intention of saving the entire visual effects industry. As a film producer, his economic interests were fundamentally opposed to those of special effects companies.
Eric’s plan was to rely on technological accumulation that stayed ahead of other effects companies, combined with the software engineering of commonly used special effects solutions.
Ultimately, by selling special effects solutions and effects software, he not only wanted Digital Domain to maintain absolute leadership in the industry, but even hoped for Digital Domain to become an oligarch within the special effects industry and establish a technological monopoly.
This concept was not without feasibility.
Because at present, computer special effects had only just begun emerging. Major effects companies were still the aristocrats of the industry. If film studios wanted to produce special effects-heavy movies, they did not have many choices for effects companies.
Under such circumstances, Digital Domain would certainly never lack visual effects film projects.
As long as they were willing to invest aggressively, Digital Domain would accumulate enough special effects solutions.
Then, ten years later, when the barriers to entry in the effects industry became lower, those late-arriving effects studios would discover that many technologies requiring the establishment of technical departments for research and development already existed at Digital Domain in the form of mature effects software.
At that point, those companies would definitely choose to purchase software rather than spend enormous sums developing the technology themselves.
What? We don’t have the software you need either?
No problem.
We have a sufficiently powerful technical team. As long as you pay an appropriate fee, Digital Domain can quickly and cheaply develop the technology you want.
That would be far cheaper than supporting your own technical team, wouldn’t it?
Like many industries, once a monopoly forms, it becomes very difficult to break.
In Eric’s previous life, Industrial Light & Magic originally had the potential to achieve this.
Because in the early 1990s, when computer special effects first became popular, Industrial Light & Magic completely dominated the visual effects industry. Whenever the seven major studios wanted to produce special effects-heavy films, their first choice was always Industrial Light & Magic.
Unfortunately, after the success of the Star Wars trilogy, George Lucas possessed more wealth than he could spend in a lifetime and no longer had the ambition to develop Industrial Light & Magic into a true giant.