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INTRODUCTION

What exactly does an animation producer do? Are all artists called animators? I want to develop an animated movie; where do I start? How do you put a production plan together? What is the most important element to ensure the success of an animated project?

Questions such as these initially inspired us to write Producing Animation. When we started our careers in the animation industry, there were few resources available that provided guidance to anyone interested in this highly creative and complex business. When searching for books to recommend to people interested on the topic, we quickly realized there wasn't a suitable title out there. Although there were many well-written and useful books that discussed the technical process and art of animation, there were none that outlined the actual nuts and bolts of producing commercially focused content for major animation studios and/ or distributors. As this was a significant missing piece of the picture, we decided to use our combined knowledge and experience and take on the challenge of providing it.

The process of writing the book was a far greater undertaking than originally anticipated—but isn't that the reality of any creative project? Once it hit the marketplace, we were both thrilled with the response, and the stress of all the work it took quickly dissipated thanks to the positive feedback from our many readers. Although we could only have hoped for this result, the book has had a far larger global influence and reach than we had ever anticipated. Since it was published, we have received emails from places such as New Zealand, Brazil, and Tanzania. The book has been translated into Korean and Chinese. It is being used as a textbook in many schools in North America and is even being studied by film students in a school in Kenya. Over the past ten years, Catherine has traveled to the Far East to visit many studios in Asia and has been surprised and thrilled at the number of people aware of the book and using it as a guide. Animation production is now taking place globally, and the fact that Producing Animation is being used around the world is incredibly rewarding and exciting to both of us. With that in mind, you may have noticed that our new book cover illustration reflects this reality. We would like to express our deep gratitude for Animation World Network (www.awn.com) for providing us with a global reach through their dedicated link to portions of our book, in addition to hosting our website. And thank you to everyone who sent us correspondence: we really appreciated hearing from each of you and have used your feedback to help us shape the second edition.

Our goal in the original edition was to create material that was written in as timeless a way as possible. Given the state of the industry and the pace of technology, this has been a truly challenging task. Although much of the information contained in the original book has withstood the test of time, there are areas as we anticipated that have not. From the time that we started the book until it was delivered, there were so many changes happening that it was almost impossible to keep up with all of the industry innovations. We had no option but to finally put a stake in the ground and say it was completed. At that time, the animation industry underwent phenomenal changes through technology and the Internet. When we started, computer-generated (CG) films were few and far between and traditional 2D was commonplace. In the more than ten years since the book was written, the industry—as expected—has flipped: CG is commonplace and the process of traditional 2D is now considered a rare technique. Stereoscopy, or 3D, was not a common concept and has since become a household word. At the time, the majority of feature work was done domestically, and TV projects were produced in partnership with subcontractors in Asia and Europe.

Since delivering the manuscript for that first edition, the pace of change has increased exponentially in all areas of the business, from processes to distribution. Thanks to technological innovations, the options for production and distribution of content are now endless. As such, we have found that attempting to provide a clear definition between different formats is almost impossible. A project can now be produced by one person in a basement, or by hundreds of artists at a single location or globally, in multiple locations with multiple time zones, cultures, and languages. It can be marketed, sold, and distributed in any length, at all types of budget ranges from hundreds of millions of dollars for a feature to a budget of less than a million. The quality ranges are equally as extreme, from stick figures to fully fleshed-out characters that seem to live and breathe. Projects can now be distributed by an individual through the Internet or by a major studio theatrically—in either case, reaching millions of viewers. Content can be viewed on a screen that takes up an entire theater wall, or on one the size of a watch, or on the complete range of sizes in between. Creatively, the industry has become highly fractured, as has the money allocated. What has been consistent is that the majority of the budgets have decreased, and this change has forced producers to seek innovative and cost effective ways of producing content. More and more studios have set up offshore locations and created “virtual studios” to help keep costs in check and competitive while tapping into the industry's rich international pool of talent.

Although we both wanted to revisit the book over the years, our heads would swirl every time we attempted to consider it. It seemed that no matter when we started, we would be out of date before the book went to print. On a personal note, there has been a positive side to this delay. We have each continued our lifelong education in this phenomenal industry, which has provided us with more insight to share. Over the years, we have found that the amount of information to absorb is truly endless, which is why we both love it. With that said, as more than a decade had passed and our children have grown, we felt it was time to tackle this next edition and that we couldn't wait any longer.

When we first set out to write Producing Animation, it was a much simpler process to define the differences between the formats in order for the book to be as universally applicable as possible. It was easy to differentiate clearly between feature, DVD, and television production processes and methodologies. Given the current landscape and all of these many changes and options for delivery, we made the decision to write the new edition using “feature production” as an umbrella term to cover all projects that run longer than 60 minutes, such as theatrical releases, DVDs, and high-end specials, and “television production” covering short-form content that runs less than 60 minutes, ranging from material made for television broadcast, mobile phones, Internet viewing, and anything in between.

Along with the challenge of defining key formats, we discovered that it was no longer possible to offer a generic production pipeline based on a “best practices” evaluation. Since there are multiple pipeline model choices applicable for all different circumstances, there is really no one established model or approach that fits all; rather, the industry is filled with constantly shifting and improving options. Once again, we made the decision to put a stake in the ground and offer a model that was based on feedback from industry colleagues and our combined knowledge. Our goal is to provide a workflow for CG, traditional 2D, and digital 2D projects that is as generic as possible. We have defined processes in a way that enables a reader to tailor them to his or her individual project, scaling up and or down, depending on the availability of resources.

Although animation is truly collaborative and no one person is responsible for getting a project done, a great producer is instrumental in creating an environment that leads to a positive experience for everyone involved. Everyone has the same end goal to produce a product they can be proud of; projects that flail are typically missing the leadership of a strong producer with proactive communication skills and an in-depth understanding of the process. Many of the lessons we have learned over the years are fundamental to the business, regardless of the format or methodology. Although the change in the industry over the past ten years or so has been significant, the information pertaining to the role of the producer from the original book has remained the same. The integral concept—that producing animation is based on the ability to think logically, proactively, and creatively—still holds. It is a cerebral act that combines a technical knowledge of the animation process with individual style, experience, and gut instinct.

Part of the problem of defining what an animation producer does is that the job function is truly amorphous. Throughout the animation industry, there is still no single definition of what a producer does. And the role that animation producers play on each project changes constantly. A producer's domain varies from production to production, as well as from studio to studio. The positive side of this variability is that producers are often able to shape the production to fit their own experience and expertise. On the flip side, it can lead to untested modes of production that can result in costly overages and frustrations for all involved.

In our opinion, the producer is the one person with the full overview and responsibility for a project from a creative, financial, and scheduling perspective. Based on the creative expectations and fiscal parameters of the project, the producer pulls together a team of artists, technical directors, production management staff, and all other types of talent in between. Partnering with the director, the producer has the role of keeping everyone inspired and on track with regard to the project's overarching vision. While balancing and understanding the creative needs of the story being told, the producer sets up and manages both a production schedule and a budget, aiming to deliver the product at the agreed-upon level of quality. The producer is also in charge of keeping both the executives (or buyers) and the production team enthused and motivated. As this role is all-encompassing, the knowledge base and skill set required to become a producer is quite extensive, thereby keeping the job both exciting and enticing because it is never the same.

Our combined experience in the animation industry has been quite varied. Both of us progressed up through the ranks, and between the two of us, we have worked in almost all production capacities at most of the major studios. Our combined job titles have included coordinator, production manager, overseas production manager, associate producer, line producer, co-producer, producer, executive producer, production executive, senior vice president of production, and company president. We have been involved in many different kinds of projects, including feature films, direct-to-video releases, television series, television specials, and short films.

For this edition, we are fortunate to have a third member added to our team: Tracey Miller-Zarneke. Tracey joined us as technical editor. She has been a formidable force and has played a fundamental role in helping us pull all of the aspects of the book together. Tracey has a background in animation production and an avid interest in the art itself, having written numerous books about the development and making of feature projects. She has been a tremendous help and support throughout this exciting undertaking. In a few words, we simply couldn't have done it without her.

Whether it's a new property or well-established brand, the goals are the same: to create timeless, relatable characters that touch people and make them laugh. Over the years, I (Catherine) have had the opportunity to work with and have been influenced by some incredible talent from visionaries such as George Lucas, Chris Meledandri, Peter Chung, and Ralph Bakshi to many other creative talents, both established and up and coming. Although each of these storytellers had his or her own unique approach to telling animated stories, they had one thing in common: a clear vision of the project, with an innate understanding of the characters they were bringing to life and a true respect for the parameters we were working within. What I have gleaned from these experiences is that regardless of the budget or timeline, a strong story with compelling characters whose fate you care about is key to success. More importantly, I learned that a project should not go into production until all of this information is developed and agreed upon by all key stakeholders, and that it is my job as a creative producer and/or executive to make sure this is the case. If a project is an established brand, such as Star Wars, Ice Age, and Barbie, it is critical that the rules of the characters in the medium of animation are understood and respected by all. It is of the utmost importance that animation enhance and further build on the original material in a timeless and thoughtful way, as opposed to one that allows for short-term gain yet ultimately is damaging to well-known and loved characters. This type of foresight and planning will help ensure a property's longevity and status. Once these many key understandings and elements are in place, I get no greater thrill than putting teams of people together to realize a vision to either build or to further establish timeless brands in the marketplace.

Launching an animated project, studio, or business enterprise in a successful manner requires that the producer be given enough time to determine the best way of proceeding, as opposed to rushing forward without a clearly laid out plan. When I am operating as either a producer and or executive in this industry, I find that there is no one magic formula to be followed, but rather a wide range of possibilities, each with its own merit and value depending on a project's goals. No matter what choices are made, the critical step is developing and implementing a communication strategy that gets everyone clearly on the same page. The communication needs to be updated constantly as the rules change and creative priorities shift. Balancing all of this is a never-ending puzzle that requires an ongoing stream of strategic analysis, creative thinking, and problem solving that doesn't stop until the final frame is delivered. Leading teams and keeping them inspired takes unwavering commitment, especially when times are tough. As everyone is looking to you to lead them through the maze of decisions and challenges, it takes strength, fortitude, and a lack of ego to determine a path. More importantly, creating a “fear-less” environment—in which everyone can speak up, as opposed to a “fear-based” one in which the team keeps their thoughts to themselves for fear of being shot down—is necessary in ensuring that the whole crew is invested in and passionate about key decisions made. This sort of atmosphere allows everyone to be focused on the important issue of how to get the project done and thus poised for success.

Since writing the first edition, I (Zahra) have had the pleasure of working on large-budget productions, consulting on independent feature films and television series, and producing and directing my own short projects. Each project has had its own intrigue and path that followed. “There is no such a thing as ‘can't be done’” is one of my favorite quotes because animation allows you to realize any creative vision. It is just a matter of pinning down that ever-elusive dream of possibilities. Though creativity can and should spin in multiple directions, as a producer, it is my job to partner with my director and together find the right course for the project within the confines of our time and budget. Finding that “truth” in the story that resonates with the audience and allows them to be emotionally transported is a necessary journey. It can be a fun adventure or highly treacherous, and anyone who tries to take a short cut pays a price. Akin to a marathoner, you have to reach inside to find that reserve and dig deeper and deeper as challenges arise. Do this and I assure you that all your hard work will pay off.

An animator once told me that he literally couldn't wait to jump out of bed every morning and come to work. He added that his whole crew felt the same way and that the weekly paychecks were just an added bonus! Hearing that comment was a gift to me because it confirmed my strong belief that it all starts when you create an environment in which a collaborative atmosphere is encouraged and everyone's contribution is appreciated. In other words, even though the artists typically don't have a financial stake in the film, they are still fully invested in its success, take pride in their work, and want to give their all to support the director's vision. Partnering with your director, you create a family that must be nurtured and nourished. Together you can push towards new creative boundaries while the project's fiscal limitations allow you the opportunity to perfect your juggling skills and develop more efficient processes and procedures. On a personal level, I am completely intrigued by how digital 2D has enabled me to explore childhood stories and collaborate online with an animator who is brilliant enough to wear multiple hats, not just generating gorgeous artwork but also taking a project from concept to final delivery. I am incredibly proud of how our book has triggered newcomers to enter this arena and the way technological innovations have leveled the playing ground to the point where you no longer need a substantial budget to reach an audience: it's amazing how a good idea showcased on the Internet that hits the right spot can go viral and provide the stepping stones for a successful future career.

In our previous edition of this book, we shared many firsthand anecdotes of our experiences, and these were well received. Taking a new approach, we decided to open the book up to other people in the industry and have included what we have called “sidebars” or points of views from animation professionals from all corners of the business. We have been fortunate to get feedback from an amazing cross-section of experts from most of the major studios in the industry, each of whom provide incredible insights and unique perspectives. Information shared includes, for example, what an agent or manager looks for when choosing clients, or how to maximize your core team, or what a producer needs to think about when creating content for a stereoscopic theatrical feature, to name a few topics.

The intended audience for Producing Animation is broad, ranging from film students to industry professionals. Keeping in mind that each situation is unique, in this book we have attempted to define and clarify the process and procedures of producing animated projects with the focus on large-scale projects, with the assumption that the information can be applied with different levels of complexity according to a production's budget and plan. Our primary goal has been to create a basis from which a producer can springboard and structure a production based on its individual needs. This book takes the reader through all the steps necessary to set up a project, including selling an idea, developing and preparing a concept for production, as well as the actual production process. For the entrepreneur producer who is trying to sell his or her project, this book will describe the role of and identify the types of industry professionals to contact. For the student or line producer who may be strictly interested in the production phase, we offer detailed information on how to budget, schedule, and track a project, as well as actual charts that can be used for such tasks. For professionals needing a basic knowledge of the animation business, this book provides answers to commonly asked questions, along with an overview of animation methodologies.

We sincerely hope that by sharing our experiences, as well as those of others, we can help pave an easier path for future animation producers. Additionally, it is our goal that the information in this book will entice new producers to enter the industry, and along with professionals already in the business, together they will continue to push the frontiers of animation to more exciting and unforeseen territories.

Welcome to the wonderfully creative, consistently unpredictable, and always exciting world of animation production. After reading this book, we hope you feel better prepared for its unexpected and expected challenges, as there is nothing more satisfying than seeing the results of your hard work moving on the screen and watching the audience respond to it in a positive way.

Commonly Asked Questions about Producing Animation

How do you become an animation producer?

The best schooling for a future producer is to begin as a production assistant and work up through the ranks of the production team. Starting from the ground up on an animated picture gives you the advantage of learning the process on a practical basis and often helps you gain a deep appreciation and respect for the talent of both the artistic and the production teams. As a production assistant, you work directly with the artists, which allows you to get firsthand experience on how artwork is generated and handled. You will discover the detailed nature of animation, and why even the slightest mistake such as misnumbering a storyboard panel or labeling an asset with the wrong code can quickly derail the production.

The next step up from production assistant is called coordinator, or assistant production manager/production department manager (APM/PDM). The titles used for this position vary depending on the studio's structure and the project's format. In this role, you are the liaison between the production manager, the department supervisor, and the artists. It is your job to keep the artists on schedule and track the flow of artwork. This position is highly beneficial, as you will begin to develop the ability to create schedules and also better your negotiating skills. You will be able to estimate how many artists are needed in order to meet the weekly quotas and gauge an approximate amount of time required to complete a given piece of artwork. Establishing a good relationship with the artists and knowing how to motivate them is another key lesson you can learn in this position.

During weekly meetings held to review the artwork with the director, you get to see why a shot may require revisions and what creative solutions are used to fix the problem. Having successfully managed your team of artists, you may then be considered for the role of production manager.

The production manager takes on increased responsibilities, such as directly managing members of the production crew and artists from a budgeting and scheduling standpoint. With the aid of coordinators or assistant production managers, it is up to the production manager to keep the entire production on schedule. Although you may not be privy to the actual dollar amounts allocated to each category, with guidance from the producer, your primary goal is to stay on budget based on the allotted number of weeks scheduled. You will use these figures as a guideline to meet the production's objectives. As a production manager, you will wear many hats as you begin to work with both the creative and the business sides of a project. You will have the power to hire freelance artists and make deals with them in accordance with the budget. Most important, this role offers the ideal opportunity for you to shadow the producer and learn as much as possible. (For more information on roles of the management team, see Chapter 7, “The Production Team.”)

Proving that you are able to meet deadlines, understand the production process, and complete a project within the allotted time indicates that you are prepared for the next challenge: taking on the duties of an associate producer or line producer. In this position, you are responsible for the overall financial aspect of a production, along with keeping it on schedule. Having now worked on numerous projects, you are knowledgeable about the creative needs specific to each show. By attending casting and recording sessions, you have learned what qualities to look for in a performer during an audition. You can assess what makes a good story. You are able to recognize strong character design and understand the importance of color choices. In this position, you can further sharpen your deal-making skills as you get exposed to how the producer and the business affairs department negotiate contracts with artists, voice talent, and writers. By now, you have had sufficient training and should be able to create budgets and schedules and put together crew plans.

Each of your varied experiences should have taught you to think strategically, understand story structure, and balance both the creative and business ends of the process. You should be able to troubleshoot by quickly coming up with alternate options when faced with a problem. Once you have reached this point in the production hierarchy, your next advancement is to step into the shoes of a producer. (For more information on the different types of producers and their respective duties, see Chapter 2, “The Animation Producer.”)

Are all artists called “animators”? What exactly is an animator?

It seems logical to call all artists working on an animated project “animators,” but it is not accurate. An animator can take a design of a character or an object and bring it to life through creating its movement and action. The animator's role can best be likened to that of an actor. Just like any other performer, whether it is in the theater, the opera, or the ballet, he or she takes center stage. But it is through the combined efforts of many talented individuals—such as visual development artists, storyboard artists, editorial staff, layout artists, modelers, surfacers, technical directors, and many other staff members—that a show gets completed and presented to the public.

What skills are required to get into the field of animation?

People often ask how to receive training in three main job categories: (1) an artist; (2) a member of the production staff; or (3) as voice talent.

Artists

The most important tool artists can have is a portfolio, or a sampling of their best work. The portfolio is typically kept online on a professional website (not a personal blog), on a reel that can be passed along via DVD, in a hard copy folder, or some combination thereof. In any method of presentation, it is the most informative calling card an artist can present. If you do not have a portfolio, you must prepare some initial artwork to start building one. Taking classes offered at animation colleges or at the animation union are good places to begin accumulating samples of your work. When considering schools, make sure their program aligns with your area of interest: if you hope to be a generalist or don't know which area interests you, find a program that offers a broad curriculum so that you can investigate your options and discover what best matches your skill set.

For those artists who already have a portfolio, it is important to keep it up to date with your most current work. Keep copies of artwork from previous projects you have worked on, but be sure to respect all confidentiality agreements, especially on projects that are yet to be released—you certainly don't want your potential new employer to see that you are irresponsible with such nondisclosure situations. Recent sketchbooks should also be included, but note that many studios will not return materials submitted, so be sure to offer copies or originals that you are willing to part with. If you have many years of accumulated artwork, it is always wise to get help from fellow artists to select your strongest work. You should also research the show you are applying for and make sure that your portfolio includes artwork that is suitable for the project.

Video compilations should be no longer than two minutes in length, unless otherwise designated in the submission instructions. If presented on DVD, they should be formatted to play on a computer or DVD player, not in data mode. If you present your reel via your website link, know that such a submission can be hit or miss if the playback isn't great. Be sure to provide a reel breakdown, outlining each shot on your demo reel and what work you did for the shot (modeling, animation, etc.). It is handy to provide a thumbnail of the shot on the breakdown summary to allow a reviewer to quickly identify the work.

Every studio has its own specific requirements based on the status of its projects in production and pre-production. Initially, the best thing to do is to contact the recruiting office or Human Resources department of a studio and request information on its application requirements. Follow the guidelines closely. Depending on your skill set (for example, whether you are an animator or a modeler), the requirements for your portfolio pieces will vary. When you have all your artwork and paperwork prepared, submit your application after having reviewed it multiple times—you only get one chance to make a first impression, so it had better be errorfree! In some studios, you may also be asked to take a test, when applying for a story artist position, for example. A standardized test is often a fair gauge of judging an artist's aptitude for the project.

Some studios have weekly or monthly artist application reviews and will continue to accept updated portfolios even if there are no current openings. Despite everyone's best intentions, the volume of applicants sometimes makes it impossible for recruiting departments to get back to every applicant in a timely manner. All recruiters would love to be able to acknowledge each candidate personally, but often at the big studios it's just not possible. On a positive note, big studios are generally well organized and will keep reels and résumés on file to review as new positions open up beyond the immediate project's needs.

Production Staff

There are several ways to get into production. Whereas a portfolio is an artist's calling card, a résumé or curriculum vitae (CV) should be used when applying for a production staff position. Make sure to have a strong résumé that emphasizes your abilities to organize, work with artists, communicate, and multitask. It is important that your résumé is easy to read and can be understood at a glance. It should not be more than two pages long. If you have listed individuals on your résumé as references, it is wise to speak with them in advance to prepare them for a possible call. By doing so, you give your contacts a chance to review your work experience, and hopefully, they will give you a glowing referral when the time comes.

If you have little or no production administration in your background, consider applying as an intern, production assistant, or a producer's assistant. If you attend a community college, you may be able to design a class in which you can get school credit in exchange for doing an internship at a studio. Computer skills are also an important asset. Having a working knowledge of software programs such as FileMaker Pro, Excel, and Photoshop can give you the winning edge by setting you apart from other candidates applying for the same position.

Voice Talent

Most voice-over actors have agents who present their voice clips around the industry and send their clients to auditions. If you don't have an agent, it is important that you assemble a sample of your work that demonstrates your voice range and talent. This sample can be made available through a personal website, public video/audio-posting websites such as youtube.com, or a number of online voice talent banks where you can upload MP3/MP4 files of your work for casting agents and producers to access directly. Whichever approach you choose, be sure that your recording quality is professional.

Potential work may be found by utilizing an agent, staying in touch with studio contacts, and researching opportunities online, as some casting directors and producers post casting calls, especially for nonunion projects, at sites like voices.com, castingnetworks.com, and others.

On larger scale projects, when a voice-over actor is hired, the agent negotiates the deal and helps the actor with all of the contractual paperwork. The agent is then paid a percentage of the actor's negotiated fee. The average voice-over session takes approximately four hours, depending on the role. Pay rates vary based on the type of voice-over work being done, and whether the project is union or nonunion (that is, Screen Actors Guild [SAG] or not). For union work, it is best to contact SAG directly to get the updated minimum rates. For nonunion work, the amount paid is whatever you or your agent can negotiate.

Whether you have an agent or not, it is a good idea to take a voice-over acting class, as doing so will help you hone your skills and make potential contacts. Many of the voice-over coaches are professional voice-over directors who are looking for fresh talent. (For more information on auditions and casting, see Chapter 8, “Pre-production.”)

How do i know whether my project is better suited for traditional 2D, digital 2D, or CG?

The simple answer is that much depends on your resources: your artistic vision, plus the skills and available funds to explore different stylistic options. Each technique has its own pros and cons, yet when you have a strong story, whether the animation is in CG or 2D becomes secondary. Sometimes a concept is based on source material that has a graphic component and you can use that imagery to guide the visual exploration for the project. Other times, you have an original idea and you can make the determination about what kind of animation technique is the best choice by considering its intended target audience and ultimately where it is to be shown. For example, is this an idea that should be a theatrical release? Or can it find a niche audience on the Internet? Or should it be developed as an application for the iPhone? Consider that the production cost for a CG theatrical feature film can run anywhere from $10 million to $175 million and that an outsourced 11-minute digital 2D television show has an average animation cost of $25,000. Depending on your end goal with the property, these kinds of financial ranges will definitely play a role in helping determine your direction.

As you will discover, this book is set up to provide you with specific steps on how to put pitch material together in preparation for taking your idea to the market place and find the right home for it. As it is often the case, once a project is sold, the decision on the style of the show will be open to discussion based on what the buyer considers to be the right choice, while the budget, schedule and marketing consideration also play an integral part in the final decision. (See Chapter 3, “How to Identify and Sell Projects,” for more details.)

I have a project. should i set up my own animation studio or find a studio for hire?

One of the dilemmas of independent animation producers is trying to decide whether they should consider setting up a studio of their own instead of hiring an existing one. The short answer is much depends on your specific expertise, your content and the scale of your project. The thinking behind this approach is that all available resources for the project will go directly towards the making of the product rather than towards the subcontracting studio's producer fees and overhead that may seem extraneous to the actual production costs. Ostensibly, setting up your own production company can provide you with direct control of how the funds are spent; the creative freedom to explore various artistic choices; and finally, the ability to hire your own staff. Yet what this approach does not take into consideration is that running a studio is an entirely different business than producing a film. Setting up a studio from scratch requires a substantial investment (initial startup funding, finding space, office/furniture/equipment rental/hardware/software leasing, pipeline development, hiring of artistic talent and production staff, etc.). As a studio owner, your primary focus will have to shift from how to make your project to how the studio will be run from day to day and how to sustain it. If you are not experienced at this type of business—or even if you are—there are always going to be surprise costs that cannot be anticipated. Ultimately, the film will more than likely cost more money than you budgeted, as building a studio is an expensive proposition.

Unless you have a way to monetize the studio and/or have investors who are willing and able to fund your projects from a long-term standpoint, your resources are probably better utilized by exploring the plethora of existing studios whose expertise will enable you to see a myriad of different stylistic approaches towards your project, which will let you hone in on the best configuration of available talent and creative direction. Instead of learning by trial and error and wasting a substantial amount of time and money learning how to run a studio and create a functional production pipeline, you can focus your efforts on how to successfully produce your project. By hiring a subcontracting studio, you benefit from the expertise of seasoned artistic talent, a tested and functioning pipeline and production processes, and staff members who can execute your project expeditiously and cost effectively. (See Chapter 7, “The Production Team,” on how to select the right studio for your project.)

What are the average budget and schedule for an animated show?

It is difficult to say exactly how much a project might cost as there are so many variables that influence budgets. Key items that affect a budget include the project's purchase price; the cost of the key creative talent attached to the property; the type of story being told; the choice of art direction; the style, technique, and complexity of the animation; the format; where the animation is being produced; and the delivery schedule. (For more detailed information on how to budget, see Chapter 6, “The Production Plan.”)

On average, the budget range for a theatrically released CG feature film can be as low as $15 million, all the way up to $250 million. Sequel projects that are specifically created for the DVD market can range from $3 to $25 million. A television series, because it varies with the number of episodes produced and the complexity of animation, has a very broad budget range. A lowbudget traditional 2D show can start at $250,000 per episode; a more high-end animation prime-time show can reach over $1.5 million per episode.

What is the balance for a boutique animation studio between doing work for hire and creating projects for which they own the intellectual property?

It is typically every studio's dream to invest in intellectual property (IP) and own their own characters. Creating animated characters and producing original product has a much greater potential upside than strictly being in the work-for-hire business. With that said, there is no guarantee that a project will be a “hit,” and there is an inherent risk to be considered when creating a studio's business plan with regard to development. There is no right answer, as this decision is a very individual one based on a studio's goals and vision. It is also significantly affected by a company's financial situation and its ability or inability to invest in projects. The other factor is the size of the studio and its capability to juggle multiple projects. When determining your balance, the key thing to remember is that you need to budget the amount you invest in your project in such a way that it does not potentially risk your ability to cover your fixed costs such as overhead and labor. It is also key to be conservative in terms of what exactly you spend money on what your end goal of the item is in helping your project get sold. (See Chapter 5, “The Development Process,” for more details.)

What does it mean to have to bond a film project?

Due to the fact that a considerable sum of money is required to produce a theatrical feature film, when such a project is made outside of the established mainstream studio, its financiers/investors need a form of insurance that guarantees the project will be completed and delivered by the producer in accordance with their agreed-upon terms. This insurance is called a completion bond or a completion guarantee and is offered by a bonding company for a fee, typically a percentage of the overall budget.

When applying for a completion bond, the producer must provide a packet of the following types of materials: the script, the budget, the schedule, cash flow, the credits of the key talent, and information on the project's investors and their financial commitment to the film. The bonding company in return will scrutinize all of the project's components and evaluate the risk factors involved in the proposed scenario. For example, if the producer and director team have already completed projects of a similar caliber and have a consistent track record of delivering shows on time and on schedule, they present a minimal production risk. If this is not the case, it will be assumed that the risk of delivery is higher and the bonding fees charged will reflect this greater risk. Once the packet is approved for consideration, the bonding company typically sets up meetings with the production's principals in order to further evaluate the project's viability. After the initial assessment has been made, it is not uncommon for the bonding company to request adjustments to the budget and schedule. It is up to the producer to consider their revisions and update his or her packet.

Based on the assessments of the key members of the production team and the final packet, the bonding company will determine whether the film can indeed be completed and delivered to the distribution company as budgeted, scheduled, and staffed by the producer. If the proposal is accepted, the bonding company will draw up the agreement and the producer can access production funding. Once production commences and throughout the process, the bonding company will monitor the project's progress. If there is a concern that the project will not be delivered on budget and or schedule, the bonding company will take over the project and move in to manage it themselves, ensuring that their client's investment is protected.

I have the world's best idea for a feature film! What do I do now?

Well, buying this book is a good first step … and then reading it and having a grounded understanding of just how challenging it can be to bring your idea to reality is a wise way to proceed. With thoughtful development, well-executed research into the marketplace, a hearty gathering of talent, savvy networking, and a committed belief in your vision, anything is possible!