To be able to produce high quality, reasonably priced and timely CGI is not an easy business. Mainframe found this out 3 years ago with ReBoot 1. You'll see from the prospectus that after that first season when they used commercial off-the-shelf software (like everyone else does now) timeliness was a problem and that's when they began to write their own proprietary software to incorporate into things like SoftImage etc... that speed up the hardest parts. Nobody else has this software. In the prospectus they mention a half a dozen programs that hit all the tough areas (GRIN helps syncronize and automate facial movements to words, BEEPSCAN matches up dialogue to production, they have one that maximaizes intense rendering CPU power etc...) This is the stuff that guys like Warner Bros would kill for (call up the SoftImage guys and ask them about Mainframe's software and usage of their software). It would take WB many years and mucho $ to be able to do this. I'm sure they thought it would be easy and they just threw money at it. They probably thought the special effects stuff would support it, but that stuff is high production/low margin.
I think the best thing is that Warner Bros is currently working with Mainframe and is aware of their production ability. Even traditional animation can be cranked out effeciently (and with a keener, updated 3D look) with Mainframe's tools. Who know's what, if anything, will ever come of it, but as a general business principal, in a growing market that is in demand, if you're proven and profitable, there's bound to be good business prospects.
My current view: Mainframe is only priced for what's known now. The huge upside of a movie or two, another RideFilm, the potential hit CDROM game, another strategic alliance or more TV shows are all in it for nothing. After the sloppy shakeout, those who understand the company and are getting the inside read from the analysts will be snatching it up before the reports come out in 2-4 weeks so they can make an easy 25-30% from here. |
