Age of Stupid

Technicolor/MPC in near total collapse?

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Cartoon Brew: Technicolor, Owner Of Mikros Animation, MPC, And The Mill, On Brink Of Total Collapse

Update: Technicolor and its companies in the UK have now gone into administration, with 440 job losses

If so, it’d take out pretty much all of MPC, The Mill and many other studios that Technicolor acquired over the years. Having worked at MPC between 2001 and 2008, where the company changed hands between Carlton Communications and Technicolor, it was a generally good period. But after a couple of years, I remember that Technicolor filed for Chapter 11 protection and their troubles really didn’t get much better ten years later.

I decided to plug in this query into Perplexity AI’s Deep Research model and here’s what it had to say – and I love the quote “Global head of underpants”. Again, the output here is verbatim from Perplexity. Make of it as you will – its sources are quoted at the bottom.

If you want to read more about the “workforce retention” – I’d suggest a visit to Reddit’s VFX subreddit. My own experience getting back into VFX a few years ago involved interviewing directly at Technicolor (not at MPC), and it was an absolute shitshow from start to finish. This was a company, to me, that couldn’t organise a piss-up at a brewery or even at any of the local pubs in Soho of which there are plenty.

The Challenges Faced by Thomson/Technicolor Following the Acquisition of MPC

The acquisition of The Moving Picture Company (MPC) by Thomson (later rebranded as Technicolor) in 2004 marked a strategic expansion into visual effects (VFX) and post-production services. However, the integration of MPC into Technicolor’s portfolio exposed systemic issues that culminated in severe financial and operational challenges, ultimately leading to the company’s near-collapse in February 2025. This report examines the multifaceted problems that emerged post-acquisition, including financial mismanagement, labor inefficiencies, cultural integration failures, and external market pressures.

Financial Instability and Restructuring Failures

Overleveraging and Unsustainable Debt

Thomson’s acquisition of MPC for £53 million ($102 million) in 2004 was part of a broader strategy to dominate the VFX and post-production markets[3]. However, the financial burden of integrating MPC into Technicolor’s existing structure strained the company’s resources. By 2022, Technicolor Creative Studios (TCS), the division housing MPC, reported plummeting profitability, with EBITDA forecasts slashed from €120–130 million to €45–65 million due to mounting debts and operational inefficiencies[2]. The 2020 Chapter 15 bankruptcy filing further highlighted liquidity crises exacerbated by the COVID-19 pandemic, which disrupted film production and delayed revenue streams[5][13].

Failed Restructuring and Investor Reluctance

Despite repeated restructuring efforts—including the 2022 spin-off of TCS as an independent entity—Technicolor struggled to attract long-term investors. The company’s reliance on short-term financial injections from private equity firms like Farallon Capital and Pimco failed to address underlying structural issues[8][13]. By 2025, Technicolor admitted it had exhausted all options, stating, “Despite exhaustive efforts—including restructuring initiatives, discussions with potential investors, and exploring acquisition opportunities—we have been unable to secure a viable path forward”[1][6].

Operational Inefficiencies and Labor Challenges

High Attrition and Talent Drain

MPC’s integration into Technicolor was marred by chronic underinvestment in workforce retention. Technicolor reported attrition rates exceeding 30% in 2022, driven by low wages, excessive overtime, and a toxic workplace culture[2][16]. Employees frequently cited mismanagement, with one Reddit user noting, “Everyone I know who’s been around Technicolor hated it and wouldn’t work for them again”[2]. The lack of competitive compensation led to a talent exodus, leaving MPC unable to meet project deadlines or maintain quality standards[2][14].

Inefficient Bidding Model and Profit Erosion

Technicolor’s reliance on underbidding competitors to secure blockbuster contracts created a “race to the bottom” in pricing[16]. For example, MPC’s work on Disney’s The Lion King (2019) and Mufasa: The Lion King (2025) involved thousands of VFX shots bid at unsustainable rates[1][16]. This model, compounded by fixed-fee contracts, ensured projects rarely turned a profit. As one insider noted, “MPC was notorious for taking on work that was guaranteed to lose money just to keep the lights on”[16].

Cultural and Integration Failures

Clash of Corporate and Creative Cultures

The merger of MPC’s artist-driven ethos with Technicolor’s corporate hierarchy led to friction. Employees criticized the proliferation of redundant managerial roles, such as “global head of underpants,” which diverted resources from frontline creatives[2][16]. The 2022 merger of MPC Advertising with The Mill—intended to streamline operations—instead diluted brand identity and alienated clients who valued specialized studios[10][16].

Inadequate Post-Acquisition Support

Technicolor’s failure to integrate MPC’s UK and global operations into a cohesive framework resulted in siloed teams and duplicated workflows. For instance, MPC’s London and Los Angeles studios operated independently, leading to inconsistent quality control and communication breakdowns[3][10]. The lack of centralized oversight was particularly damaging during the 2023 writers’ strike, which exposed Technicolor’s inability to pivot resources across divisions[6][13].

External Market Pressures

Impact of Industry Disruptions

The COVID-19 pandemic and subsequent Hollywood strikes (2023) exacerbated Technicolor’s financial woes. Production halts led to a 40% drop in revenue, while the shift to streaming platforms reduced demand for theatrical VFX work[6][13]. Technicolor’s reliance on traditional film studios left it ill-prepared for the streaming era, with one analyst noting, “The company remained too focused on mainstream filmmaking while reliable revenue shifted to streaming”[9].

Competition and Technological Shifts

The rise of AI-driven VFX tools and boutique studios further eroded MPC’s market share. Smaller firms like Framestore and DNEG adopted agile workflows and competitive pricing, while Technicolor lagged in technological innovation[14][16]. A former employee remarked, “Executives were oblivious to AI’s impact, even as Marvel’s demand for human-driven VFX declined”[16].

Conclusion: A Legacy of Mismanagement

Technicolor’s acquisition of MPC exemplifies the pitfalls of aggressive expansion without sustainable planning. Financial overextension, poor labor practices, and an inability to adapt to industry shifts transformed a once-dominant studio into a cautionary tale. As the VFX sector moves toward unionization and ethical labor practices, Technicolor’s collapse underscores the need for systemic reform in how visual effects companies balance artistry, profitability, and worker welfare[2][16].

The company’s final communication to employees—a somber acknowledgment that “Technicolor is more than just a company, it is a community”—serves as a poignant epitaph for a failed vision[6].

Sources
[1] Technicolor-Owned VFX Firm MPC May Shutter Due to ‘Severe … https://variety.com/2025/film/global/technicolor-vfx-mpc-shutter-severe-challenges-1236316354/
[2] Technicolor Creative Studios issues profit warning and stock loses … https://www.reddit.com/r/vfx/comments/yxoe8q/technicolor_creative_studios_issues_profit/
[3] Thomson Set To Buy MPC From ITV For $102 Million – SHOOTonline https://www.shootonline.com/article/thomson-set-buy-mpc-itv-102-million/
[4] Technicolor To File For Administration In UK With Company On Brink https://deadline.com/2025/02/technicolor-administration-receivership-job-losses-1236299805/
[5] Vantiva – Wikipedia https://en.wikipedia.org/wiki/Vantiva
[6] Live Updates: Technicolor, Owner Of Mikros Animation, MPC, And … https://www.cartoonbrew.com/business/live-updates-vfx-industry-on-edge-as-technicolor-owner-of-mikros-animation-mpc-and-the-mill-on-verge-of-total-collapse-245995.html
[7] Thomson Reuters completes acquisition of integration point https://www.thomsonreuters.com/en/press-releases/2018/november/thomson-reuters-completes-acquisition-of-integration-point
[8] Technicolor ‘in talks over sale’ – TVBEurope https://www.tvbeurope.com/business/technicolor-in-talks-over-sale
[9] Technicolor, Parent Company of The Mill, MPC, and Mikros, Facing … https://www.lbbonline.com/news/technicolor-parent-company-of-the-mill-mpc-and-mikros-facing-potential-closure
[10] MPC Advertising to merge with The Mill | News – Broadcast https://www.broadcastnow.co.uk/tech/mpc-advertising-to-merge-with-the-mill/5166534.article
[11] [PDF] Cross border M&As in emerging market – Lund University Publications https://lup.lub.lu.se/student-papers/record/1625324/file/2435757.pdf
[12] David Patton joins MPC and The Mill owner – Campaign https://www.campaignlive.co.uk/article/david-patton-joins-mpc-mill-owner/1583458
[13] Technicolor: “Majority Of 440 Employees In The UK Made Redundant” https://deadline.com/2025/02/technicolor-440-employees-made-redundant-company-faces-global-implosion-1236300121/
[14] Analysis of Technicolor Restructuring, and a Serious Discussion … https://devoncroft.com/2020/10/28/analysis-of-technicolor-restructuring-and-a-serious-discussion-about-post-production/
[15] VFX Giant MPC and Parent Company Technicolor May Shut Down … https://www.reddit.com/r/movies/comments/1iwqr0j/vfx_giant_mpc_and_parent_company_technicolor_may/
[16] Technicolor likely closing all US operations as of Monday 24th Feb https://www.reddit.com/r/vfx/comments/1iv7wo8/technicolor_likely_closing_all_us_operations_as/
[17] Technicolor set to enter administration – TVBEurope https://www.tvbeurope.com/business/technicolor-set-to-enter-administration
[18] Technicolor Out of the Grading Business | Lift Gamma Gain http://www.liftgammagain.com/forum/index.php?threads%2Ftechnicolor-out-of-the-grading-business.15425%2F
[19] VFX Giant MPC and Parent Company Technicolor May Shut Down … https://www.aol.com/vfx-giant-mpc-parent-company-163627560.html
[20] M.2336 – THOMSON MULTIMEDIA / TECHNICOLOR https://competition-cases.ec.europa.eu/cases/M.2336
[21] Major Players in VFX M&A – HDRI Consulting https://www.hdriconsulting.com/timeline-posts/vfx-mna
[22] Technicolor Announces Important Shareholder Meeting, Former … https://www.reddit.com/r/vfx/comments/1361n0a/technicolor_announces_important_shareholder/
[23] Technicolor Sells Off Thomson Video Networks https://www.streamingmediaglobal.com/Articles/News/Featured-News/Technicolor-Sells-Off-Thomson-Video-Networks-74247.aspx
[24] Thomson Renamed Technicolor, As Restructuring Plan Approved https://www.nexttv.com/news/thomson-renamed-technicolor-restructuring-plan-approved-258507

In an effort to out trump Trump, the UK government has forced Apple’s hand: it pulls iCloud encryption in the UK

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There are days when I sympathise with the Klingon mantra: “today is a good day to die”.

Across the Atlantic, the lingering effects of the Trump administration continue to reverberate, with citizens confronting service reductions and leadership that confuses authoritarian regimes with democratic governments. Meanwhile, Britain’s policymakers demonstrate technological naivety through security proposals like mandated encryption backdoors – measures cybersecurity experts universally condemn as disastrous vulnerabilities. This pattern of myopic governance suggests institutions worldwide are failing to address 21st-century challenges with necessary nuance.

Today Apple has annouced it is to remove the Advanced Data Protection system for UK users. ADP is used to encrypt iCloud data and keep it safe. This is generally a good idea, though if you do this, you can’t access many Apple iCloud services via the web. So will it affect everyone? Possible not – but that’s not the point. Apple have done this in order to comply with a secret order to put a backdoor in its ADP encryption so that the UK government can access anybody’s iCloud data. And to repeat: anybody’s iCloud data – regardless of whatever citizenship they may be, and be located anywhere in the world.

This government policy is likely to affect other services such as WhatsApp and anything else that uses end-to-end encryption. It seems that the government doesn’t realise this kind of technology is also keeping its secrets in check, and should (and indeed will happen, because it inevitably does) the backdoor or encryption key is compromised – everybody is utterly fucked. Fucked. With a capital F. I cannot stress how important this issue is.

Of course the good guys using encryption also means that the bad guys are also using it. Goes without saying. But the argument that by weakening or breaking/disabling encryption entirely in order to protect a country and its citizens is the most pathetic, uneducated, misinformed, stupid and lazy excuse I’ve ever come across in my career.

Needless to say this is going to trigger a letter to my local MP. I’m in fighting fuckwits mood at the moment, so now is as good a time to do so. The age of stupidity continues unabound! What next?

DURR, I wonder what happens if I gently keep tapping this unexploded WWII bomb with this 5 pound lump hamm.. <EXPLODES>

O2 and the Communications Ombudsman

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Alternatively: I’m a Telecoms company that can’t communicate

The O2 Nightmare Saga ☕

So, I’ve been stuck in this endless loop with O2 over their legendarily bad customer service. It started with direct debit issues—they took payments one month, ghosted the next, and never explained why. No emails, no letters, nada. Naturally, I escalated it to the Communications Ombudsman.

Double Trouble with the Ombudsman

Turns out, two cases got opened somehow. In one, O2 offered £50 + an apology (still pending). The other case? They dangled £110 + another apology, so I tentatively marked it “resolved”… except their system doesn’t let you add caveats like “Yes, but…” to negotiate terms. I figured there’d be follow-up options, but NOPE. Instead, they told me to call O2 customer service—the very thing I’d complained about!

The Silent Treatment

After accepting the £110 “goodwill gesture,” O2 emailed saying “reply if you have questions.” I did. Two weeks later? Crickets. Checked my email logs—nothing. Now they’re claiming it’s been “28 days since we asked if it’s resolved” (total lie—their offer came Feb 5th, today’s the 19th!). Meanwhile, the direct debit mess? Still unresolved.

The Nuclear Problem

Here’s the kicker: O2 terminated the accounts linked to those direct debits but never sent a letter explaining what I owe or how to pay. No debt collector calls, no letters—just radio silence. The “resolution” they offered? Doesn’t mention any of this. I’ve tried reopening the other Ombudsman case, but who knows?

Next Steps?

I’m stuck between:

  • Badgering the Ombudsman’s open case
  • Starting a new complaint
  • Writing a scathing letter to O2’s Complaints Review Board (though I doubt it’ll help—they ignored me for 8 weeks before!)
  • Going public. Imagine the headline: “IT Pro Battles O2’s Kafkaesque Hotline for Months Over Simple Billing Error.”

The Irony

I’ve built ISPs from scratch and worked in tech for 30 years… yet I can’t get a basic billing issue fixed because O2’s systems—phones, emails, customer service—are all stuck in 1995.

TL;DR: O2’s customer service is a black hole of frustration, and even the “solutions” create new problems. 😤

On a more serious note

I genuinely do not understand why O2 have not been able to reply back to me via email. It’s not as if I’m using a consumer grade service. I pay good money for my personal IT, and I use the business grade version of Microsoft 365 Exchange Online, as well as DDoS-protected nameservers.

This report from mailhardener.com should testify to that. (Though the only reason I can’t implement BIMI is that it’s for commercial purposes and costs a lot, and DANE is still being tested by Exchange Online/M365.)

But every time I email their supposedly monitored email addresses, I get nothing in return. Nothing shows up in the mail logs, so I assume the problem is strictly internal to Virgin O2.

We’re truly living in the age of stupid..

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Last night I was standing outside the office minding my own business and some bloke comes up to me and asks, “are you a bum?”. As you can imagine, I was somewhat taken back by this, and I asked him why? Is he going to give me a fiver? A free sandwich and a cup of coffee? Beat me to death? His response was that I was hanging around looking like a bum, possibly looking for other “bums”. I just told him that he was a bloody fool and to go [censor] himself. He wasn’t exactly looking like a million dollars himself.

Clearly a nearby Surrey village is missing their idiot, and I had the good mind to take a photo of the chap which I’ve incorporated into this lovely image of him playing in the muddy puddle next to the Village Idiot sign. So if you see this guy hanging the bike racks in the Guildford area, don’t forget to patronise him as he seemingly likes to do others.

In other news, it’s been revealed that the UK government has ordered Apple to incorporate a backdoor into iCloud accounts worldwide so that the government can get at people who are hiding illegal and naughty things because it’s too hard for the security services to crack the encryption. The same encryption which keeps everybody’s data safe – including that of the government.

Never have I read such utter nonsense about a government apart from all the ridiculous things that Trump is currently doing. These are not security experts. These are government officials who do not have a bloody clue about technology and security, and if I were a gambling man, I reckon none of them have ever completed cybersecurity training. That’s the UK government for you!