Trouble in the Industry - Dreamworks and Rhythm&Hues

It's been a bad few days in the industry. First Dreamworks finds that it is unable to meet the 12 films in 4 years goal and now Rhythm&Hues will be filling for bankruptcy. Dreamworks originally had slated 12 films to be produced in 4 years which, while a daunting task, was great news in that it would mean more and continuous jobs for various people in the industry. Unfortunately "Mr. Peabody & Sherman" has been moved back a year to 2014 and  "Me and My Shadow" is going back into development phase. With the loss of a project, Dreamworks will not need as many people in the studio and probably not able to retain them, especially if the additional people have no work to do so talk of layoffs have begun.

It has been reported by Deadline that Rhythm&Hues is unable to meet payroll and is now filling for bankruptcy. However, as FXGuide clears up, it is important to note that the people who were being let go were mainly junior level employees or those on a contract basis and their projects are finishing. Also, Rhythm&Hues is filling Chapter 11, which means that the VFX house is not closing but looking for restructuring. While some people may be confused at why R&H is in trouble, being one of well-known VFX houses and do get a lot of work, it is important to know that VFX houses have a very low margin as they are a service industry. They don't actually create or own any orginal content and the only money they make are from whatever the client pays; the majority of that goes into maintaining the facility, software, renderfarms, and the employees.

On a bright side, here is a new trailer for Pixar's upcoming movie "Monster's University" [youtube]