The future of production is virtual, according to the annual Nostradamus report from analyst Johanna Koljonen, with the process expected to become the norm in the industry over the next five years.

Currently, the Nostradamus report details, threshold for hands-on experience with virtual production is low, with tools becoming more and more accessible. Installations that currently require a significant investment will also lower in price over time.

Also impacting virtual production, according to Koljonen, is the shifting of production pipelines. She says that current post-production processes are moving into pre-production. In addition, similar production processes will converge different formats and media, creating new opportunities for multiplatform storytelling, creative talent and creative technology skill sets.

“The term Virtual Production covers a real range of applications from previsualization and fully CG animated projects to the LED-wall in-camera visual effects made famous by ‘The Mandalorian,’” said Alex Stolz, Future of Film. “What’s exciting is that it is already possible for filmmakers to use this technology, just not necessarily yet in a huge professional studio volume. There’s a knowledge gap and there’s an education gap, but there’s not an accessibility issue—with the underlying game engine tools like Unreal Engine available for free.”

Virtual production is not limited to big productions like “The Mandalorian,” Koljonen points out. Virtual production techniques are already being used in broadcasting, particularly in news studios.

The pandemic has helped accelerate some of these trends as virtual production has provided an alternative method in these times.

The Nostradamus report also forecasted that in five years “all ‘TV’ will be streaming first, with video on demand understood as the standard viewing option and linear channels the specialized alternative.” As a result, household SVOD spending will become even bigger.

The full 2021 Nostradamus Report is available from the Göteborg Film Festival. 

GÖTEBORG, SWEDEN—The annual Nostradamus Report, which speaks to key figures within the TV and film industries, has predicted Netflix will look to buy TV channels within the next five years.

In the report, presented at the Goteburg Film Festival, Walter Iuzzolino, co-creator of Walter Presents, said, “I think some TV channels will literally become joint ventures with the giant streamers and Netflix will buy channels. Because Netflix are brilliant at colonizing the world, but they don’t have the marketing real estate in terms of being able to shape the national conversation.”

"I think a big streaming giant will buy channels, or vice versa, or they will completely merge. I think that’s absolutely inevitable," Iuzzolino added.

Marike Muselaers, co-CEO, Lumière Group, suggested blockchain will make a major impact on the industry, particularly for producers and content makers: "They will use a technology like blockchain to reach out to their consumers directly—so it’s transactional. 

"These kind of technologies are perfect for makers to regain power," she added. "What you can do in a blockchain is basically what the music industry does: you put everyone who worked on the production on a smart contract. And when a film is bought online, everybody will immediately get a piece of the pie. No more middleman."

The full report can be found at the Goteburg Film Festival website.

This story first appeared on TVT's sister publication TVB Europe.