Booming virtual production scene faces talent shortage

The market for virtual production technology is set to grow 20% year on year to $2.2 billion in 2023, up from $1.8 billion in 2022, according to consultancy Deloitte Global.

But there is a shortage of qualified virtual production talent and the industry landscape of virtual production studios is currently fragmented, the consultancy also warns.

Deloitte says the tools and techniques of virtual production are steadily transforming film and cinema production, increasing flexibility, shortening production times, and bringing real-time computer-generated imagery (CGI) and visual effects out of post-production and onto real-life sets.

Many forces are driving this growth: audiences demanding film and television genres that rely heavily on digital capabilities; streaming video services embracing these genres to fill production slates and reduce costs; greater reliance on digital tools as workforces become more remote and distributed, and the ambitions of some top game engine providers to better serve the film and video production market.

However, virtual production requires a significant investment. Even though, when planned well, it can cost less and be quicker than traditional techniques, the tools involved can be complicated and difficult to use, requiring significant training as well as sophisticated and expensive hardware. Qualified virtual production talent is currently scarce—and therefore costly.

In addition, the landscape of bespoke providers is fragmented. Larger and more established studios have assembled their own virtual production toolchains and are learning how best to integrate them into production—but smaller studios and streamers moving into CGI-based entertainment may instead partner with third-party providers that can provide the talent, software, and hardware in the same package. All these users will likely reckon with uneven standards, set-up and tracking challenges, and the nuances of seamlessly blending the physical and digital.

Virtual production also affects how productions are planned and financed. Because it shifts much of the work that was done in post-production into the preproduction phase, studios must do more up-front work to build digital assets, match colours, and properly set up hardware and software. This can deter investors who baulk at having to provide funding earlier in production.

Over time, however, the cost, expertise, and funding barriers will likely come down as the virtual production market grows. And as the industry matures and best practices are discovered, virtual production is becoming easier to use. The interplay of gaming and video production could potentially generate a feedback loop of content development as digital assets like sets, characters, and imagery can move more easily between mediums.

More studios are pursuing franchises built around “universes” that can be experienced through video and gaming—and more audiences are becoming used to engaging with rich, imaginative, and hyperrealistic virtual worlds. As entertainment becomes increasingly social and interactive, the technologies of virtual production will likely be seen as fundamental building blocks and enablers of the emerging metaverse.

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