Technicolor is to close its Pinewood-based Media Services division, claiming that the sector of the industry it operates in has become “commoditised”.
Broadcast understands that the majority of staff at the content preparation facility have been put on six weeks’ notice. The Pinewood unit handles content for clients including StudioCanal.
The Media Services facilities at the company’s Burbank, US facility will also be closed. However, the Soho-based digital cinema business and its broadcast post production operation are unaffected by the closure.
A Technicolor spokeswoman said it was “essential for the company to shed “commoditised businesses” in order to create “next generation, immersive, connected and interactive experiences”
The spokeswoman said: “For this reason we are planning to make the difficult, but necessary, decision to transform our Media Services department by closing our standalone physical Media Services facilities in the US and the UK and prioritise our nascent digital servicing platform.”
Broadcast understands that some of the functions provided by the LA and UK offices will eventually be picked up by Technicolor’s Bangalore office.
Technicolor added that it would now focus its efforts on “services and creative talent that build and enable the immersive media experiences our customers expect.”
A senior industry source working in a similar area said his company had already received CVs of Technicolor employees including media operators and fulfillment staff.
He said: “The race to the bottom is truly on. Corporate customers want the safety of working with another corporate, but they want to pay independent prices. It’s a huge factor in this closure,” he said.
Two years ago, Technicolor closed its Pinewood film lab owing to what it described as uncertainty in areas such as film stock. Approximately 30 staff were affected by the closure.
No comments yet