1. Hollywood and Animation: An Intensive for
CG Artists on the Business of CG-Animated Filmmaking
Lance L. Young
A Weekend Seminar
Animation
2009
Opportunity
Strategies to Create
Premium CGI Animated
Films

2. Page 2
The Animation Opportunity 2009
About The Seminar
This Two-Day Intensive offers an in-depth look at the inner workings of the CG-Animation
Studio in Hollywood. It focuses entirely on development and production and targets students
who are looking for a career making CG-Animated Features. Presented by a veteran
executive who spent six years at DreamWorks and consulted internationally in the field, the
seminar offers a rare and candid look at how key decisions are made at all levels. It begins
by analyzing why there remains only two CG Studios, Pixar and DreamWorks, who
consistently produce successful features. Why have all but two Major Distributors failed to
source and distribute these films which are the least risky and most profitable genre of all
time? Over the two-day seminar, these questions will be answered along with an in-depth
study of studio operations, how management interfaces with the artistic and technical staff,
and the key elements that lead to success and failure. How these studios source their
ideas, develop them with writers, and ultimately green light them is revealed along with its
considerable cost. The digital pipeline will be analyzed to give the student a thorough
understanding of the role of junior and senior artists and programmers and how they
effectively interface together. The Animation Budget will be demystified including a
breakdown of the pay rates for each discipline and exactly how a movie budgeted between
$65-80 Million inevitably ends up costing well over $120 Million. Changing technology
strategies, legacy costs, and the 3-D revolution (This time it’s here to stay!) are all analyzed
in depth. Most importantly, the Seminar will give each student new awareness on how to
navigate the “people and politics” that govern these large institutions.
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3. Page 3
The Animation Opportunity 2009
About the Presenter:
Lance L. Young
Lance L. Young is an entertainment executive and acclaimed writer/filmmaker with
over 20 years of industry experience. Most recently he has served as a consultant
and advisor (both live action and animation) to large and small media companies
around the world. Formerly, Mr. Young was Head of Creative Affairs and
Production for DreamWorks Animation from 1999-2007. At DreamWorks, Mr.
Young maintained oversight in development and production of films from inception
through release. During his tenure DreamWorks Released 8 films including Shrek,
Shrek II, Shark Tale, Shrek the Third, Bee Movie, and Madagascar. Before that,
Mr. Young was a writer on several produced films and the writer/director Bliss, a
critically acclaimed love story for Columbia Pictures. He began his career at
Paramount Pictures and Warner Brothers where he served as a senior executive on
over 30 major motion pictures including Top Gun, The Hunt for Red October, Days
of Thunder, Black Rain, The Pelican Brief, and Dennis the Menace. Mr. Young
graduated from Harvard Business School and the USC Cinema/Television program
where he subsequently taught as a professor in the Peter Stark Program.

4. Page 4
The Animation Opportunity 2009
The Seminar — Table of Contents
DAY 1: The Structure & Economics of the Premium CG-Animation Studio
Introduction
Definition: What is a “Premium” CG-Animation Studio
Distribution Capacity and Why There Remains a Shortage
CG-Studio Economics
Animation Studio Reporting Structures
DAY 2: Managing Content, Process, and Technology
Content Strategy: The Narrow Parameters of Story
Content Sourcing: The Animation Development Process
The Production Schedule with Multiple Pipelines
Managing the Front End: The Workshop Environment
Technology Strategies and Issues
Managing the Back End: Process and Flexibility
The Premium CG-Animation Budget: Money & Man Hours
The 3-D Evolution: All The Rules Change
Recruiting and Training
An “Artist 1st” CG–Animated Studio Strategy
The Toughest Business in The World?

5. Page 5
Examples of Interactive Slides
The Animation Opportunity 2009

6. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
Premium CG-Animation
The Universe of all “Premium” CG films and their Theatrical
Box Office Revenues
$ Millions

7. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
Shortage of Capacity is Based on:
(d) Diverging Management Outlook
Lower
6-8 Years
4 Years Minimum
Long Term Contracts and Freelance
Executive/Producer/Director
3-4 Years
Low Tech and High Tech
Internal
2 CG-Animated Films
Animated material, live-action & animation
talent relationships, talent management,
pipeline process management
Live-action material, live
action, talent relationships,
talent, management
EXECUTIVE EXPERTISE
12 - 15 Live Action FilmsANNUAL PRODUCT GOAL
Largely ExternalPRODUCT GENERATION
Low TechPRODUCTION PROCESS
3-4 MonthsPRODUCTION TIMELINE
Director/StarPRODUCTION CONTROL
FreelancePRODUCTION TALENT
1 YearPRODUCT HORIZON
Extremely HighTALENT PARTICIPATION
1 YearPORTFOLIO HORIZON
CG-animation productionLive-action production
Distribution conglomerate
Major motion picture studio
Studio head (live action)

8. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
($ in millions) A B C D E F G
REVENUES
Domestic Theatrical 60.0 90.0 105.0 112.5 120.0 150.0 180.0
Int'l Theatrical 60.0 90.0 112.5 127.5 135.0 180.0 210.0
Network Television 9.0 12.0 13.5 15.0 16.5 18.0 18.0
Domestic Syndication 5.3 6.8 7.5 7.5 7.5 7.7 7.5
Int'l Free TV 7.5 9.0 10.5 12.0 13.5 15.0 16.5
Domestic Video/DVD 157.5 202.5 229.5 244.5 259.5 324.0 390.0
Int'l Video/DVD 75.0 97.5 111.0 120.0 129.0 168.0 216.0
Domestic Pay TV 6.0 7.5 9.0 10.5 12.0 13.5 15.0
International Pay TV 6.0 6.8 7.5 9.0 9.8 10.5 10.5
Pay-Per-View 4.5 6.0 9.0 9.0 9.0 9.0 9.0
Non Theatrical 3.0 4.0 4.5 5.3 5.3 5.3 5.3
Merchandising 3.0 3.0 3.0 3.0 5.0 5.0 5.0
Total 396.8 535.0 622.5 675.8 722.0 906.0 1,082.8
DISTRIBUTION COSTS
Domestic Media 60.0 67.5 75.0 82.5 90.0 97.5 105.0
Domestic Print 11.3 11.3 12.0 12.8 12.8 12.8 13.5
Domestic Other 1.5 1.8 2.3 2.3 2.3 2.3 2.3
International Media 30.0 37.5 37.5 42.0 45.0 52.5 60.0
International Print 9.8 9.8 10.5 10.5 10.5 11.3 11.3
International Other 1.8 2.4 3.0 3.0 3.0 3.2 3.2
Dom. Video/DVD 30% 22.5 29.3 33.3 36.0 38.7 50.4 64.8
Int'l Video/DVD 35% 2.1 2.6 3.2 3.7 4.2 4.7 5.3
TV Costs 0.9 1.1 1.4 1.4 1.4 1.4 1.4
Total 151.8 178.1 199.1 215.0 228.8 256.9 287.6
DISTRIBUTION FEE 12.5% 49.6 66.9 77.8 84.5 90.3 113.2 135.3
CG-Animated Film Ultimates
Madagascar
“The
Gold”

9. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
Old Disney
Children (G)
Adult (PG-13)
Comedy Drama
DWS
Pixar
Marketing
Envelope
The Marketing Envelope
 The CORE AUDIENCE is kids ages 5 to 12. Always.
Period.
 Achieve CROSSOVER to older audiences with TONE, or
by dealing with FAMILY ISSUES.
 NEVER make a movie with solely a child protagonist.
 COMEDY is King. Both physical and verbal humor.

10. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
One Facility = Two Pipelines
 Shared Design and Story Resources
 Each Production team is unique
 Film Studio not Film Factory
Pipeline #1:
Storyboarding
Pre-Visualization
Modeling and Rigging
Layout
Animation
Lighting and Effects
Editorial (Primary)
Pipeline #2:
Storyboarding
Pre-Visualization
Modeling and Rigging
Layout
Animation
Lighting and Effects
Editorial (Primary)
Administrative and Key Creative Offices:
Administration
Story Development
Visual Development

11. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
Extended CG Production Schedule
Lighting
Sound Effects
Music Score
Final Delivery
Layout
Animation
Visual Development
Modeling
Character Rigging
Voice Recording
Screenplay
Storyboarding
Treatment
Development Pre-Prod. Production Post-Production
Variable Year 1 Years 3 - 3.5
Pre-Visualization Team
Extended ScheduleExtended Schedule
Overtime
Load

12. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
Pre-Visualization Teams
TimeTime
Pre-visualization TeamsPre-visualization Teams
Modelers and char. riggersModelers and char. riggers
Layout (cinematography)Layout (cinematography)
DigitalDigital
VisualVisual designers/char. designersdesigners/char. designers
AnalogAnalog
IdeaIdea
3 page story3 page story
Final 3 page storyFinal 3 page story
Launch treatment writerLaunch treatment writer
1st draft treatment1st draft treatment
Approved treatmentApproved treatment
1st draft screenplay1st draft screenplay
Working screenplayWorking screenplay
1st screening1st screening
2nd screening2nd screening
3rd screening3rd screening
4th screening4th screening
WriterWriter
Storyboard artistsStoryboard artists
Executive / ProducerExecutive / Producer
Director(s)Director(s)

13. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
The 3-D Cube
StereoScopic
Window
+ 50 PIXELS (STRESSFUL)
The Screen
+ 25 PIXELS (COMFORTABLE)
+ 15 PIXELS (SAFE)
- 45 PIXELS (SAFE)
- 75 PIXELS (COMFORTABLE)
- 250 PIXELS (STRESSFUL)
D
E
P
T
H
B
R
A
C
K
E
T

14. Introduction
“Premium” CG
Animation
Shortage of
Capacity
Economics
Reporting
Content
Schedule &
Pipelines
The Front-End
Technology
The Back-End
The Budget
3-D Evolution
Recruiting &
Training
The 3-D Cube
StereoScopic
Window
+ 50 PIXELS (STRESSFUL)
The Screen
+ 25 PIXELS (COMFORTABLE)
+ 15 PIXELS (SAFE)
- 45 PIXELS (SAFE)
- 75 PIXELS (COMFORTABLE)
- 250 PIXELS (STRESSFUL)
D
E
P
T
H
B
R
A
C
K
E
T