Peter Jackson’s Special-Effects Firm Looks to Become a Content Producer

Weta—named after an insect endemic to New Zealand—is also on the hunt for acquisitions in the special effects and animation space, part of a strategy to pivot into content creation as new streaming platforms look to stock up on fresh programming.

“We have a crew of over 1,200 people, very skilled, very talented people doing the best special effects I think that anyone does,” Mr. Jackson said in an interview. “And so we thought, how can we give this crew exciting projects going forward that go beyond just providing some shots for other people’s films.”

Mr. Jackson sees a big opportunity to provide animated programming for streaming services as well as movies and cable channels. “There’s a demand that’s tending to outstrip supply right now,” he said. Another plus for animation is that it is Covid-proof. While fears of the spread of coronavirus have made it challenging to shoot on TV and movie sets, animation work can be done remotely.

Mr. Jackson is banking on Weta Digital’s independence as a selling point to animators. Much of the animation industry is controlled by a handful of companies including Disney’s Pixar and NBCUniversal’s Illumination and DreamWorks Animation. The products those companies make is used to feed their own content platforms. Mr. Jackson said his company can supply programming for streaming services “without having to be part of an in-house club.”

Weta Digital, whose other credits include “Mulan” and “The Umbrella Academy,” has been the movie and television industry’s go-to for high-end special effects for decades. When Covid-19 halted production in the U.S. earlier this year, New Zealand’s low infection rate allowed Weta to keep its facilities running at full capacity. Producers made pilgrimages there to finish films.

Weta is working on the highly anticipated “Director’s Cut of Justice League,” a four-hour limited series for HBO Max, as well as the sequels of director James Cameron’s “Avatar.”

Mr. Staggs, who spent more than two decades at Disney, is familiar with Weta, having worked closely with the company on the development of the “Avatar” theme park attraction at Disney World.

Also joining Weta’s board are Ken Kamins, head of the management and production company Key Creatives, which represents Mr. Jackson, and Jeff Huber, a former senior executive at Google and eBay.

Charged with executing Mr. Jackson’s vision are Chief Executive Prem Akkaraju and Vice Chair Sean Parker, the co-founder of Napster and former Facebook Inc. president who is also a large Weta Digital stakeholder. Both joined the company earlier this year. Mr. Jackson and his collaborator and partner Fran Walsh are majority owners.

In an interview, Mr. Akkaraju said Weta “will be doubling or tripling the size of the company through acquisition and organic growth.” He said the growth will be “a result of executing a strategy of significantly increasing market share and services, launching of original content and expanding investment in next generation AI-based tool sets.”

Weta’s plans are in contrast to the trend of cost-cutting and downsizing at other entertainment companies such as Disney, AT&T Inc.’s WarnerMedia and Comcast Corp.’s NBCUniversal.  “We’re kind of moving in the opposite direction,” he said. Those companies have taken a hit in the pandemic with the closure of movie theaters and theme parks, among other challenges.

Weta also is on the hunt for special-effects and software companies so it can expand further into virtual and animation production. Mr. Akkaraju said the special-effects business has grown significantly during the pandemic. The privately held company doesn’t disclose its financial information.

In September, Weta partnered with Amazon Web Services, a unit of Amazon.com Inc., to create a cloud-based visual-effects hub that Mr. Akkaraju said will clear the way for the company to scale up production globally.

Growth could allow Weta Digital to spread the costs of its expensive technology across more shows and lower prices for customers, said Mr. Parker. “There’s a lot of 3-D animation that gets thrown into the market that doesn’t pass the bar, and kids and parents can tell it’s not very good,” he said. “Unless you’re sitting inside Disney or Universal, you’re not necessarily going to have access to these tools.”

The coronavirus crisis put Weta’s expansion plans on a fast track. “It has accelerated a lot of our thinking in terms of the future of visual effects and what animation production pipelines are going to look like,” Mr. Parker said.

Write to Joe Flint at [email protected]