Price wars - Post Script - Video post industry is involved

Post, April, 2003 by Marc Loftus

With the economy still struggling, many throughout the post industry have resorted to slashing prices in order to get business and stay afloat. The animation industry saw it last year when Alias\Wavefront, Side Effects and NewTek dramatically reduced prices of their 3D applications. Avid and Apple are also duking it out with price reductions on their NLEs.The good news is that there are a lot of values out there for professionals looking for pretty powerful, low-cost tools. The bad news is that their studios are seeing some repercussions from these price reductions, as well as from tight client budgets. What's that doing to their rates?

NYC-based broadcast designer Steve Marchand saw these struggles first hand while operating a larger facility and as a result, recently decided to launch his own boutique, Marchand Media (see News p.16), where he'll use low-cost Adobe tools along with Discreet and Quantel gear.

"I think it's important to keep a standardized price," he says of his billing. Marchand realizes that price is always an issue for clients, but feels that they continue to come to him year after year because of his workmanship.

Audio creative director Gary Arnold of Gary's Chop Shop, located within NYC'S Blink.fx, sees tough competition offering similar services. While there are a dozen or so local facilities competing for audio post clients, Arnold believes only about four of his competitors are pulling it off at what he calls "a Madison Avenue level."

"Sometimes, it comes down to price," says Arnold on winning a job. "[But] I never nickel and dime my clients or give them the feeling that I'm watching the clock I'd rather give them a couple of extra hours of my time without a rate than to lower the actual hourly rate of the room."

And in Santa Monica, production/post house Radium sees at least 10 local competitors (including ex-Radium staffers who formed Zoic), six of which executive producer Matthew McManus says compete with Radium head on.

"We try not to charge people by the hour or the day. We charge by the project," he says. "I don't say, 'Here's my Flame rate: I say, 'Here's my bottom line number to do this job.' I really try to avoid getting in the undercut sort of situation because I don't think it really speaks well of us."