Business

Jellyfish Pictures Suspension Reveals Outsourcing Opportunity, Says BruntWork

Published

10 months ago

March 16, 2025

Jellyfish Pictures, a well-known UK visual effects studio, has temporarily shut down due to financial struggles. The company, recognized for its work on major films and streaming projects, is searching for buyers or investors while halting all ongoing work. This situation has raised concerns across the visual effects industry, which is already dealing with economic pressures, labor disputes, and production changes. BruntWork, one of the top outsourcing companies, sees this as an opportunity for companies to reassess how they operate and how outsourcing can help VFX studios lower costs and stay financially stable.

A Leading Studio Brought to a Standstill

Jellyfish Pictures started as a small operation in 2001 and became a respected name in visual effects. With multiple offices in London and a portfolio of high-profile projects, the studio built a strong reputation. However, rising costs and growing competition from lower-cost studios made it harder to stay profitable. Financial pressure mounted, forcing the company to suspend operations.

Clients relying on Jellyfish Pictures are now left searching for alternative vendors to complete their projects. The suspension has also put hundreds of employees in a difficult position, leaving them uncertain about their future. Company leaders have stated they are looking into all possible options, including selling the business or bringing in outside investors.

Why VFX Studios Are Struggling

Visual effects companies have long worked with tight profit margins. The financial setbacks caused by the COVID-19 pandemic made things even tougher. Many VFX studios kept projects moving remotely but struggled with delayed payments and cancellations. In 2023, the global VFX industry was valued at $11.3 billion, but continued production delays and tighter budgets are making it difficult for companies to grow.

The writers’ and actors’ strikes in 2023 added more complications. With productions on hold, many VFX studios found themselves with fewer projects in the pipeline. A recent industry survey found that 72% of VFX companies faced financial struggles due to the combined effects of the pandemic and the strikes. Mid-sized studios with high fixed costs, like Jellyfish Pictures, have been hit the hardest.

Winston Ong, CEO of BruntWork, believes this situation exposes weaknesses in traditional business models. “Studios operating in expensive cities like London face overwhelming costs that outsourcing could help reduce,” he says.

The Role of Outsourcing in Keeping VFX Studios Afloat

Some experts believe outsourcing can help visual effects companies manage financial risk. According to Ong, studios that rely entirely on in-house teams in high-cost cities struggle to keep expenses under control, while those that blend in-house work with outsourcing can operate more efficiently.

The shift to remote work during the pandemic showed that collaboration across different locations is possible. Data from outsourcing firms suggests that studios using a mix of in-house creative direction and outsourced production can lower expenses by 40-60% without sacrificing quality. Some companies have already moved in this direction, allowing them to stay competitive without driving up costs.

Beyond production outsourcing, some VFX studios are also exploring ways to streamline marketing efforts. Hiring a digital marketing virtual assistant allows companies to manage campaigns, social media, and client outreach more efficiently. This helps studios maintain a strong industry presence without the overhead costs of full-time marketing teams.

Still, outsourcing comes with potential risks. Some industry veterans warn that relying too much on external teams can lead to quality issues and production delays. Studios must find the right balance between saving money and maintaining the level of quality audiences expect from high-end visual effects.

What Comes Next for Visual Effects?

Jellyfish Pictures’ troubles have sparked discussions about how VFX studios can stay in business. More flexible production models, outsourcing, and smarter budgeting could become the standard technique. Advances in technology continue to make remote collaboration smoother, allowing studios to complete projects without keeping all operations in expensive locations.

“This reflects a larger problem across the industry,” says Ong. Studios that adjust their operations and use outsourcing effectively may be better prepared for economic swings. Companies that maintain strong creative leadership while using global production teams seem to have an advantage.

For many, this also extends to marketing. Some of the most successful VFX firms are those that recognize the benefits of outsourcing digital marketing to specialists who can handle branding, social media, and client engagement without the high costs of in-house teams. This allows studios to maintain visibility and credibility even in uncertain market conditions.

Larger firms may continue to acquire struggling studios, but smaller businesses that improve their financial strategies could stay independent. The challenge is finding a way to keep artistic vision intact while managing expenses.

Moving Toward Stability

Jellyfish Pictures’ shutdown is a warning for the visual effects industry. High operating costs and unpredictable changes in production schedules show why studios need flexible business strategies. Some will turn to outsourcing, while others may merge with larger firms or adopt hybrid models to stay competitive.

For mid-sized studios, financial stability must be a priority without sacrificing creativity. The next few years could bring more studio buyouts, with bigger companies taking over smaller ones. However, independent studios that adjust how they work could still succeed by reducing costs without lowering the quality of their output.

“Adaptability is what matters. Studios that adjust their structures and use global talent wisely will be the ones that remain strong in this industry, ” Ong concludes.

Business

Inside the $4.3B Quarter: What’s Fueling Black Banx’s Record Revenues

Published

5 days ago

January 16, 2026

Matthew Wiles

Every quarter brings fresh headlines in fintech, but few make the kind of impact achieved by Black Banx in Q2 2025. The Toronto-based global digital banking group, founded by Michael Gastauer, reported an extraordinary USD 4.3 billion in revenue and a record USD 1.6 billion in pre-tax profit, while improving its cost-to-income ratio to 63%.

These results not only highlight the company’s operational efficiency but also mark a pivotal moment in its journey from challenger to global leader. The big question is: what’s fueling such impressive financial performance?

Customer Growth as the Core Driver

One of the clearest engines of revenue growth is Black Banx’s expanding customer base. By Q2 2025, the platform had reached 84 million clients worldwide, up from 69 million at the end of 2024. This 15 million net gain in six months demonstrates both the attractiveness of its services and the scalability of its model.

Unlike traditional banks, which rely heavily on branch expansion, Black Banx leverages digital-first onboarding that allows customers to open accounts within minutes using just a smartphone. This approach is especially effective in regions underserved by legacy institutions, where access to affordable financial tools is in high demand.

More customers don’t just mean higher transaction volumes—they generate a compounding effect where network size, brand trust, and service adoption reinforce one another.

Real-Time Payments and Cross-Border Solutions

A major contributor to Q2 revenues is the platform’s real-time payments infrastructure. Black Banx enables instant cross-border transfers across its 28 supported fiat currencies and multiple cryptocurrencies, helping both individuals and businesses bypass the traditional bottlenecks of international banking.

For freelancers, SMEs, and multinational clients, this means faster liquidity, reduced foreign exchange costs, and simplified global operations. The demand for real-time financial services is growing rapidly—Juniper Research projects global real-time payments turnover to hit USD 58 trillion by 2028—and Black Banx is strategically positioned to capture a significant share of this market.

Crypto Integration as a Revenue Stream

Another key revenue driver is crypto integration. While many traditional institutions remain hesitant, Black Banx embraced digital assets early and has built infrastructure to support Bitcoin, Ethereum, and the Lightning Network. In Q2 2025, 20% of all transactions on the platform were crypto-based, reflecting strong customer appetite for hybrid banking services that bridge fiat and digital assets.

Revenue comes not only from transaction fees but also from value-added services like crypto-to-fiat conversion, staking yields (4–12% APY), and blockchain-enabled payments. For customers in markets with unstable currencies, these services act as a financial lifeline, further expanding the platform’s relevance.

AI-Powered Efficiency and Risk Management

Record revenues would be less impressive if costs ballooned at the same rate. But Black Banx has proven adept at balancing growth with efficiency. Its cost-to-income ratio improved to 63% in Q2, down from 69% a year earlier, thanks to heavy reliance on AI-powered automation.

AI now drives fraud detection, compliance, and customer onboarding—areas where traditional banks often struggle with cost inefficiencies. By automating these processes, Black Banx can process millions of transactions securely while maintaining profitability at scale. This level of efficiency is rare in fintech, where high growth often comes at the expense of margins.

Regional Expansion and Untapped Markets

Geography also plays a role in fueling revenues. Much of the Q2 growth came from Africa, South Asia, and Latin America—regions where demand for mobile-first banking continues to soar. In 2024 alone, Black Banx reported a 32% increase in SME clients from the Middle East and Africa, signaling the strength of its positioning in underserved markets.

By extending services to populations previously excluded from formal banking—migrant workers, rural communities, and small businesses—Black Banx taps into vast pools of latent demand. The strategy proves that financial inclusion and profitability are not mutually exclusive but mutually reinforcing.

Diversified Revenue Streams

Another factor behind Q2’s record revenues is Black Banx’s diversified business model. Income is not tied to a single service but spread across multiple streams, including:

Transaction fees from cross-border transfers and payments.
Crypto trading and exchange services.
Premium account features for high-net-worth clients.
Corporate services for SMEs and international businesses.

This diversification insulates the company against volatility in any single segment, creating stable revenue growth even in shifting market conditions.

Michael Gastauer’s Strategic Blueprint

Behind these results is Michael Gastauer’s long-term strategy: scale aggressively but with efficiency, innovation, and inclusion at the core. His vision has always been to create a borderless financial ecosystem, and Q2 2025’s performance is evidence that this vision is not only achievable but sustainable.

By balancing mass-market accessibility with premium features, and by blending fiat with digital assets, Gastauer has positioned Black Banx as a category-defining player in global finance.

The Road Ahead: Toward 100 Million Clients

Looking forward, the company’s goal of reaching 100 million customers by the end of 2025 will likely be the next catalyst for revenue growth. More customers mean more transactions, more data insights, and more opportunities to refine and expand its service offering.

If current momentum holds, the USD 4.3 billion quarterly revenue milestone could be just the beginning of an even larger growth story. The challenge will be ensuring systems scale securely while maintaining trust in an environment where privacy and compliance are paramount.

A Record That Signals More to Come

Black Banx’s Q2 2025 performance—USD 4.3 billion in revenue, USD 1.6 billion in pre-tax profit, 84 million clients worldwide, and a lean 63% cost-to-income ratio—is more than a financial milestone. It is a signal of how the future of banking is being rewritten by platforms that are borderless, crypto-inclusive, and data-driven.

What fueled this record-breaking quarter is not one innovation but a combination of strategies—scalable onboarding, real-time payments, crypto integration, AI efficiency, and expansion into underserved regions. Together, they form a model that doesn’t just challenge traditional banking but actively builds the foundation for global dominance.

For Black Banx, the road ahead is clear: the $4.3 billion quarter is not an endpoint but a launchpad for even greater scale and profitability.