I read it in an article in some entertainment magazine back in the late 90's or early 2000's. It was either Berman or Piller explaining why Insurection failed.
Most of Insurrections budget was spent on building the Ba'ku village.
Can anyone provide the article that details this or maybe some storyboards, etc.? There should be some evidence since this type of effect would have to have been carefully planned out (including budget-wise vis-a-vis the Ba'ku village) prior to live action photography; VFX-wise I don't think you would just shoot blue walls in the background and then deal with it later. The plain blue panels in the background struck me as an incomplete effect as well back when I first saw the film in the theater, but I've thought about it since then and wonder if this is really true.
Can someone experienced in VFX technology of the day (circa 1997/1998) comment on this? Back then wasn't bluescreen used mainly for miniature photography (ships, etc.) and greenscreen used for CGI-composited background effects (like what would have been used for the collector)? For example all of the behind the scenes stuff from Phantom Menace seems to show greenscreen being used for the elaborate CGI backdrops. Also, in many shots the walls are partially obscured by smoke; how would that have affected the process? I can't think offhand of a case where practical smoke or other diffuse effects were effectively used in conjunction with blue/green screen (unless they also were CGI). IIRC there were other blue elements in some shots that probably would not have been there if a bluescreen effect had been planned (you could correct for it but why?). Even Frakes' photography (the motion, the camera angles, the focus, etc.) just doesn't seem consistent to me with that type of effect, as with Lucas' (apoprychal) claim that in 1976 he planned to matte a slug-like creature over the live actor playing Jabba the Hutt in the deleted hangar scene in Star Wars. In that case, other than Lucas' claim no supporting documentation of this intent exists (and there's a TON of production documentation for that film) and VFX experts have commented that the live action was not shot in a way that would in any way facilitate that effect using 1976/1977 VFX technology (and it arguably looks pretty awful even with modern CGI). There was a luminous blue motif used on the So'na ship as well, so I wonder if it really was just planned that way -- not that it wouldn't have looked cooler to see the collector's fins (ever-so-slowly of course) deploying during the fisticuffs.
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