Wes Lui, VP CASO Co-Founder of House of Cool Presenter: Wes Lui, President CASO; Co-Founder House of Cool Inc.
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1 Wes Lui, VP CASO Co-Founder of House of Cool Presenter: Wes Lui, President CASO; Co-Founder House of Cool Inc.
2 CASO Mission Statement The Computer Animation Studios of Ontario (CASO) is an association dedicated to promoting and growing the Ontario Animation and Visual Effects industry Non-profit Association founded in 2004 consisting of 9 Board members elected each year. Board of Directors are Ontario Studio Owners, Executives and stakeholders. Primary Functions: International Marketing & Promotion The promotion of a strong collaborative production community Member services Government relations
3 Industry Information Global: 50 of the top 50 highest grossing films of all time are VFX and Animation centric From Avatar (No. 1) to Ice Age 3 - Meltdown (No. 50) Rely heavily on VFX and Animation to produce quality of film Films are the most expensive to produce and most labour intensive Virtually all films in the modern age have some sort of VFX and Animation component Ontario: Total Production Volume for 2010 is roughly $125M The Industry has grown from $77M in direct operating revenues in 2008 to $125M in 2010 Compound annual growth rate of $17.1% Profit Margins have increased from 10% to 15% in 2010 for Animation and VFX companies Employment in , Full Time 71 Part Time 754 Contract Expenditures in 2010 $96,048,300 M Of that 68% is wages # of Companies 40 (rough estimate based on average revenues) VFX Over 80% of VFX work comes from LA Animation Ontario co-producing more with other counties, than in previous years. Less shows currently being produced in Canada.
4 Ontario VFX and Animation Visual Effects in Toronto Competitive Advantage: Educated skilled labour Both Technical and Creative Able to cross pollinate with other industries: Gaming, Transmedia, mobile, etc. Much of skilled labour is located in Toronto Average VFX studio is approx 11 years in business Able to reach decision makers at the major studio levels in LA Understand nuances of production pipelines Developing strong collaborations between VFX Studios More than VFX Shots in 2010 (Reference: Batman Darknight had 650 shots)» 24% compound growth from 2008 Weaknesses: Does not have infrastructure to handle large budget films Studios range from employee s. Need infrastructure that allows all studios to work with each other and communicate data securely to LA clients Opportunities: Not re-inventing the wheel. Largest VFX jobs are being completed in UK and LA. Know their infrastructure tools and software, create a new or utilize their existing infrastructure to attract larger VFX Films Focus on high quality and care, not compete on price Threat: Service based industry with lower labour cost countries beginning to compete at a global level BC is in the same time zone with LA, creating ease of use.
5 Ontario VFX and Animation Animation in Toronto Competitive Advantage: Top Schools in the world located here Sheridan College, Seneca College, Humber College, Centennial College» Working with CASO and Industry professionals to develop strong creative and technical curriculums» Labour able to move from varying industries: Gaming, Mobile, Web, etc. Global Leaders in Children s television space Large television and animated feature talent pool Largest producers of television animation in the western countries» Revenues in 2008: $36.79M, 2009: $36.08M, 2010: $58.29M Large number of content creators with access to broadcast and distributors Skilled producers in television Weaknesses: Limited purchasing power of Canadian broadcasters CBC, YTV, Teletoon, Family Channel are experiencing budgetary cuts and therefore can spend less on new show = less service work in the industry. Needs more platforms to distribute content which companies can monetize. Opportunities: Develop new streams in revenue in Transmedia and co-producing with emerging countries Apps: Mobile, Ipad, Android Co-production with Brazil, China Develop feature film industry with talent, off the shelf software and full production capabilities (Preproduction, production and post production) Continue to be IP content developers and rights holders Threat: Service based business with lower labour cost countries Producing quality product Vancouver has a developing animation sector: Pixar, Sony, etc. Artists and technicians leaving Ontario
6 Summary VFX and Animation Shots have grown from 2009: shots to 2010: shots Revenues grew from $77M in 2008 to $125M in 2010 VFX and Animation Shots have grown from 2009: shots to 2010: shots Revenues grew from $77M in 2008 to $125M in 2010 Margins have increased from 10% to 15% in 2010 Toronto has world-class post-secondary educational system such as Sheridan, Seneca, Centennial, Humber all located 30 mins from Toronto Toronto has world-class talent; many have worked in LA as supervisors and moved Margins have increased from 10% to 15% in 2010 Toronto has world-class post-secondary educational system such as Sheridan, Seneca, Centennial, Humber all located 30 mins from Toronto Toronto has world-class talent; many have worked in LA as supervisors and moved home to home start families to start families Toronto Studios have an excellent reputation in VFX and Animation Toronto has leading edge software companies that specialize in VFX and Animation Software Toronto Studio s facing economic pressures from other jurisdictions such as BC and Quebec along with global competition Toronto Studios have an excellent reputation in VFX and Animation Toronto has leading edge software companies that specialize in VFX and Animation Software Toronto Studio s facing economic pressures from other jurisdictions such as BC and Quebec along with global competition
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