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http://freakonomics.com/podcast/no-hollywood-ending-visual-effects-industry/

No Hollywood Ending... 

An interesting overview of how spending on visual effects boomed, but the companies doing the work were left behind.  The problems included inability for the visual effects companies to manage projects, too few hollywood companies with too much power - each of these pitting the players against each other, and of course subsidies.

It seems to me, after listening, that subsidies for this industry make complete sense for those jurisdictions.   B.C. and England seem to have won out in luring these companies onshore.

Background links:

http://www.theglobeandmail.com/news/british-columbia/bc-to-slash-film-and-tv-industry-subsidy-after-consultations/article29826234/

https://en.wikipedia.org/wiki/Hollywood_North

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