News Analysis: Will LA Audio Post Rise or Fall Following the Todd-Soundelux Bankruptcy?

In an audio post development that took the entertainment industry by surprise, Todd-Soundelux filed for Chapter 11 bankruptcy protection this week.

The storied Soundelux faces an uncertain future.

The holding company, which was formerly known as CSS Studios, includes some major names in the audio post world: Todd-AO, Soundelux, and POP Sound (Pacific Ocean Post). As reported by David Robb of Deadline Hollywood, and Bryant Frazer of Studio Daily, the immediate impact with significant: Soundelux’s Hollywood and Santa Monica facilities were closed on Wednesday, May 21. Be sure to visit both of their articles for deeper details on the financial action.

Soundelux released a statement saying it is filing for Chapter 11 bankruptcy protection “to streamline the company’s cost structure while preparing the company for sale. The company will continue to operate the business throughout the restructuring process and honor its commitments to clients and their projects. This action has been necessitated by a significant decline in revenues, primarily in the feature film segment, which has impacted the independent post production sound business in the Los Angeles area.”

Fortunately, the company’s Burbank operations remain running. But approximately 30 of the total 200 employees received pink slips.

A “Seismic” Shift?

This development represented what one LA audio post professional says could be a “seismic” shift in post. Little wonder: over its 50 year history, Soundeluxe has been the sound service provider to thousands of films and TV shows. Just a few credits include the Hunger Games, Sky Fall, Django Unchained, plus  HBO’s “Game of Thrones,” “Big Love,” and “Girls.”

Everybody can relax, however, because Leslie Cohen, the company’s bankruptcy attorney said, “There are no further imminent layoffs expected at this time. The company is still in business and intends to stay in business, and will satisfy all of its commitments to its customers, pay its creditors, and will sell the business as a going concern. The bank is consenting to the company’s further operations and restructuring efforts.”

No matter what else does or doesn’t happen at Soundelux, a lot of audio post work is suddenly going to come into play. And just like when New York suddenly lost Sound One in 2012, shockwaves both good and bad will reverberate throughout the area.

Many capable mixers and support personnel are now jobless. But demand for their services hasn’t suddenly decreased – it’s simply that the host facility for their skills shut its doors overnight. These specialized personnel should see high demand for their services on the free market, as other audio post facilities strive to step up to the front of the line.

In fact, it wouldn’t be surprising to see a microburst of fresh new LA audio post facilities follow in the wake of this: in NYC ambitious facilities like Harbor Sound, Digital Arts, and Rumble Audio are proving agile as well as Dolby-certified: it’s a nimble wave of competition that’s also technically adept.

Speaking of Sound One a second ago, a common thread behind these big closures is the parent company, Empire Investment Holdings. The Miami-based firm which owns Todd-Soundelux also owned Sound One. Remaining open in Empire’s portfolio are POP Sound, Modern Music, and the sound effects provider The Hollywood Edge.

On the East Coast

Mark DeSimone, far left, shown with the loop group team for “Boardwalk Empire” in the Soundtrack control room: (l-r) DeSimone, Dann Fink, Ric Schnupp, and Fred Rosenberg.

As noted above, Los Angeles can look to New York City’s recent experience to see what happens when an anchor facility suddenly goes dark.

“I don’t think you can take a huge production studio out of play and not affect the landscape,” says the NYC-based Mark DeSimone, the Emmy Award-winning ADR Mixer (The Hunger Games, “Breaking Bad”) who mixes the likes of “Boardwalk Empire” at Soundtrack in Manhattan’s Flatiron District.  “I am sure some facilities will benefit, but in the end some competition is good for business, and choices are also good for the clients and a healthy competition. It is not as simple as another place taking all of the work and life will be good all around.”

DeSimone allowed that the closure of Soundelux in seemingly faraway LA could positively affect NYC audio post business, as well. “It could on a certain level because there has been more features and TV shot in NYC, we keep some of the mixing and post, but a lot still goes back to LA because the mother company is there. So we will have to wait and see. Sound One did spread some work and personnel around the city when they closed.”

Production, postproduction, distribution, and – oh yeah – the audience are all part of an interconnected ecosystem. A significant change in one part of the system is bound to affect everybody else.

The most immediate part of the chain to wonder about is production companies, which maintains their schedules on the assumption that preferred post services will be available as expected. So how might the Soundeluxe bankruptcy affect the big picture for production?

“I really feel it depends on what comes out of this situation and if there is a sale or just an end,” DeSimone says. “Hopefully there will be a place for all of the talented mixers and post supervisors to land in the short term, and then a more solid solution moving forward.”

— David Weiss

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