The Fight to Save California's Visual Effects Industry

At the 2013 Academy Awards, Bill Westenhofer accepted the Oscar for best visual effects for his team’s work on Life of Pi. The recognition was bittersweet. Two weeks earlier his employer, Rhythm & Hues Studios, became the latest in a string of Hollywood effects houses to file for bankruptcy. Clutching his golden statuette, Westenhofer used the occasion to call attention to his industry’s plight. “Sadly, Rhythm & Hues is suffering severe financial difficulties right now,” he said as the get-off-the-stage music began to play. “I urge you all to remember—” That’s all he managed to get out before his mic was cut off and he was ushered to the wings.

Outside, more than 400 digital-effects artists dressed in green were also protesting their troubles. Many pointed to a particular problem: Hollywood, which relies on pixel magic to transform actors into apes, make the White House explode, and conjure 32-foot robots from thin air, is increasingly turning to overseas effects houses that can undercut U.S. rivals, thanks to large government subsidies.