Virgil Edward

DaVinci Color Management

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DCM is a non-destructive way to transform to another color space, meaning you can go back and forth as many times as you want without experiencing any quality loss.

LUTs are normally built with a more pleasing tonal curve than what DCM provides. Designed for a better visual result. 

LUTs are destructive and values that are clipped can't be recovered in nodes after the LUT. That is not the case with DCM transforms. 

 

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If you use Luminance Mapping or Saturation Mapping color transform is not 100% reversible. But like Abby explains this is the main difference between LUTs and RCM/ColorTransforms.

I prefer to use "manual RCM", for instance P3-D65 to P3-D55 it will clip highlights, so I do it with a luminance compensating (just a tuch of lowering the gain) and similar manual tricks...

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