Color grading is the process of
altering and enhancing the color of a
motion picture or television image,
either electronically,
photo-chemically or digitally.  

Digital formats are capable of
recording vast amounts of information.
 In some cases, that information takes
the form of image detail that can be
manipulated through color grading.  
Things like skin tones and textures,
scenic shadows and highlights, and the
full range of colors can be enhanced
or suppressed through the color
grading process.  Thus the ultimate
potential of the captured HD images is
maximized, yielding vibrancy and
brilliance that was captured, but was
hidden until manipulated by the
grading process.

Correction is often times a necessity
to improve mistakes made in the
productions phase, such as
reflections, white balance,
brightness, equilization from shot to
shot, etc.
video example
An Important Tip Prior To Shooting

If you are planning to shoot material with the plan to create the desired
look in a post production color grading session, there must be special care
taken.  The key to maximizing the potential of the post production color
grading process is for the director and DP to ensure that on set lighting has
the desired effect on the subjects and the environment. But they should be
careful not to ”overexpose” the image.  HD retains an enormous amount of
information, but much of the available information is lost forever when the
whites and high end of the picture are blown out. When that happens, it is
very difficult, and sometimes impossible to recover the image details that
are lost.
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