The company filed for Chapter 11 bankruptcy in early 2013. It was then purchased by an affiliate of Prana Studios, 34x118 Holdings, LLC, but retained the same name.
Rhythm & Hues Studios was established in Los Angeles, Californiain1987 by former employees of Robert Abel and Associates (John Patrick Hughes,[3] Pauline Ts'o, Keith Goldfarb, Cliff Boule, Frank Wuts and Charles Gibson).[4] The company used its own proprietary software for its photo-realistic character animation/visual effects—as well as for those that are more stylized.
Director Ang Lee approached Rhythm & Hues in August 2009 to discuss a planned film adaptation of the fantasy novel Life of Pi.[6][7] R&HVFX (Visual Effects) Supervisor Bill Westenhofer noted that Lee "knew we had done the lion in the first Narnia movie. He asked, 'Does a digital character look more or less real in 3D?' We looked at each other and thought that was a pretty good question."[8] He also stated that during these meetings, Lee said, "'I look forward to making art with you.' This was really for me one of the most rewarding things I've worked on and the first chance to really combine art with VFX. Every shot was artistic exploration, to make the ocean a character and make it interesting we had to strive to make it as visually stunning as possible."[9]
Rhythm & Hues spent a year on research and development, "building upon its already vast knowledge of CGI animation" to develop the tiger.[16] Artist Abdul Rahman in the Malaysian branch underscored the global nature of the effects process, saying that "the special thing about Life of Pi is that it was the first time we did something called remote rendering, where we engaged our cloud infrastructure in Taiwan called CAVE (Cloud Animation and Visual Effects)".[17]
The resulting film, Life of Pi, was released in theaters in November 2012, and was a critical and commercial success. The British Film Institute's Sight & Sound magazine suggested that, "Life of Pi can be seen as the film Rhythm & Hues has been building up to all these years, by taking things they learned from each production from Cats & DogstoYogi Bear, integrating their animals in different situations and environments, pushing them to do more, and understanding how all of this can succeed both visually and dramatically."[18]
On February 11, 2013, Rhythm & Hues Studios filed for bankruptcy under Chapter 11, three months after Life of Pi was released.
On March 29, 2013, an affiliate of Prana Studios, 34x118 Holdings, LLC, won the bidding on Rhythm and Hues in a bankruptcy auction.[19] The sale was "valued at about $30 million".[20] In February 2015, founders Hughes, Goldfarb, and Tso were sued for having “pillaged” the VFX house, including conflicted technology and real estate transfers.[3] As of January 2024, the outcome of the lawsuit hasn't been made public.
After the bankruptcy and sale, Rhythm and Hues continued to successfully work on award-winning film, television, and themed entertainment projects, winning multiple Emmy and Visual Effects Society awards for their work on Game of Thrones.