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What I'm seeing is that the work is going to people and firms who either have some other skill set or are aiming outside of traditional entertainment. For instance our projects focus on military training. The production people we work with either have some previous experience or at least sensitivity to the specific approaches, or are very willing to learn. I've taken a production designer who worked on a previous film project for us and have transformed him into an immersive educational designer. He has worked his arse off though, and is really energetic and has engaged the whole thing. He was art lead on the last season of a major show at CBS so he's not a newbie.
Degree doesn't mean much unless it is in an unrelated area (ie not design/art/film) that he can tie into work. For instance if he was a history major and got onto something where he could use that to his advantage.
A good friend is a killer demo/promo cutter and he is sitting idle right now. For creative types you have to be looking at non-traditional markets and clients.
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