The fixed bid system, foreign subsidies and tax incentives are largely responsible for all the VFX studio failures that have occurred. This affects not only the studios themselves but also the VFX artists who work there. VFX artists face ridiculous hours with low pay, no health insurance, and no guarantee of secure employment. Without these artists, films would undoubtedly be very different from what they are today. It is therefore in the best interest of the visual effects industry to change the business model it currently follows. Paying on an hourly basis rather than a fixed auction model would be a start. Additionally, eliminating foreign subsidies and tax breaks would be extremely helpful. Unionization is also a possibility to help improve the working conditions of VFX artists. Regardless, the visual effects industry needs to make sure changes are made, otherwise the industry itself will collapse and leave VFX artists jobless. Works Cited: Skilton, Paul F. "Supply Chain Governance In A Creative Industry: Offshore Sourcing Of Special And Visual Effects." Proceedings of the Academy of Management Annual Meeting (2008): 1-6. Commercial source completed. Internet. April 3, 2014. “Views Emerging on VES 2.0, VFX Issues” Shoot 52.7 (2011): 1-17. Business Source Complete. Web. April 3.