Not so long ago, a company called Digital Domain closed its doors. Well, they defaulted on a $35 million dollar loan, filed for Chapter 11 bankruptcy, and were put on the auction block. Now another large studio seems to be in a jam. Rhythm & Hues has been a staple in the industry for a long time. I'd list all their films and projects, but that would be a very long list (http://www.rhythm.com/home/). One of their most recent films is Life of Pi. It did well, won a bunch of awards, and everyone is still talking about it.
So what happened? This studio that has been producing good work for the past 20+ years is facing financial difficulty? Why? How? I'm finding it difficult to comprehend how large, solid studios are getting their financial asses handed to them.
The economy sucks. I get it. But anyone who doesn't plan for fuck ups and financial hardship isn't planning well. People should do this on an individual basis, which is kinda another post now that I think of it. But I feel like that's part of what should be in a business plan. Plan for profit...but also plan for hardship. Right? (I have not taken any business class or majored in finance or anything like that. I'm just using my own logic at this point. If I'm wrong, let me know. Okay? Thanks!)
So, again, what the frak happened?!
I found the following links interesting and thought I'd share....
http://www.thewrap.com/movies/blog-post/rhythm-hues-we-could-be-going-frying-pan-fire-76326
http://www.awn.com/news/visual-effects/rhythm-hues-gets-20m-studio-infusion
http://www.variety.com/article/VR1118065654/
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