Don Groves is a Deadline contributor based in Sydney.
Late last year, OmniLab Media and George Miller and Doug Mitchell’s Kennedy Miller Mitchell disbanded their digital production joint venture Dr D Studios after making Happy Feet Two. Now, OmniLab Media is selling its visual effects and post-production businesses to Deluxe Australia, a subsidiary of Deluxe Entertainment Services Group. OmniLab will continue to produce films and TV series, notably holding onto production divisions Ambience Entertainment (Killer Elite, Tomorrow, When The War Began) and New Zealand-based Oktobor Animation (which supplied visual effects to the TV series The Penguins of Madagascar, Fanboy and Chum Chum and Kung Fu Panda: Legends of Awesomeness). Margins are tight in the local post business, amid a prolonged downturn in Australian film production and international films that location in Oz.