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BEHIND THE SCENES – 127 HOURS footage-part-2.

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Presentation on theme: "BEHIND THE SCENES – 127 HOURS footage-part-2."— Presentation transcript:

1 BEHIND THE SCENES – 127 HOURS http://www.movieweb.com/movie/127-hours/behind-the-scenes- footage-part-2

2 HARNESSING FILM, TELEVISION AND MEDIA PRODUCTION AS AN ECONOMIC DRIVER. Association of Film Commissioners International Film Commissions Presentation: June 2012

3 FILM AS ECONOMIC DRIVER The Numbers

4 The Economic Argument High-paying Jobs Small Business growth Direct (out-of-state / foreign currency) investment Improved skills levels Improved government co- operation Multiplier effect Tourism Spin-off

5 Buoyant Business Model PWC Global Entertainment & Media Outlook 2012 – 16 Global spending on entertainment and media (E&M) rose 4.9 percent in 2011 - a little faster than the 4.5 percent increase in 2010, but below gains in previous growth years. During the next five years, E&M spending will grow at a 5.7 percent compound annual rate to $2.1 trillion per annum.

6 Dynamic Demand Thirteen countries in 2011 had E&M spending above $25 billion, led by the United States at $464 billion. China passed Germany in 2011 to become the third largest E&M market in the world. Brazil overtook South Korea in 2011 and during the next five years will pass Canada and Italy to become the seventh largest market.

7 Growing Market for Products Of the countries with more than $10 billion in consumer/end-user spending in 2011, the fastest-growing through 2016 will be China at a CAGR of 9.9 percent, followed by India and Brazil, both at 9.0 percent. The US will continue to dominate consumer spending through 2016.

8 Long Value Chain ConceptFinancingPre-ProdProduction Post Production DistributionConsumption

9 Economic Impacts The Film Sector is a dynamic economic driver. In particular, the production of film, television and new media productions on location can contribute significantly to the creation of local jobs, the stimulation of small businesses, and the support of economic activity throughout a host community.

10 Manufacturing-on-the-Move 24 percent or almost one-quarter of 154 American films released in 2003 were filmed outside the USA. One third of all DGA pilots for dramatic series filmed last year were made outside the United States. One quarter of all DGA dramatic television series broadcast on American television in 2003 were made outside the U.S. 69 Of 110 movies for all forms of television and miniseries filmed under DGA contract in 2003 were shot outside the USA. Virtually two thirds of all long-form television (movies of the week, movies for television, and miniseries), made for the American market last year under DGA contracts, were filmed outside the U.S. 68% of Television Commercial producers (AICP Members) have used international destinations

11 How the Film Industry contributes The greatest economic opportunities arise from large-scale inbound production. These can provide freelance work for more than 1500 people with work created for camera operators, sound and lighting technicians, caterers, plumbers, carpenters, animal trainers, truck drivers, make-up artists, graphic artists, photographers, set designers, painters and actors.

12 Not (just) about Bond in a fast car

13 Local Supplies, Local Skills

14 Direct Involvement Actors Camera Casting Agents Computer effects & graphics Crew / Labour Crewing Agents Distributors Equipment Rentals Film editing and projection Financing Grips Lighting & Sound Location Management Location scouting Make-up Music & sound Photography Production Accounting Scriptwriting Set construction Special effects Titles Transport accommodation Video post production Wardrobe

15 Indirect Involvement Accommodation owners Taverns, bars and restaurants Transport - taxi services, tours, trips, airport and other transfers Incidental Services such as florists, hair salons, beauty parlours, craft shops Laundry services -ironing only, full laundry, sewing and repairs Portering, Courier & Freight services Rugs, wall hangings, furniture, textiles, art Saddles, harnesses & leather goods Construction - collection of materials, thatching, building trades Maintenance services - vehicles, plant and equipment Metal workers Environmental services - gardening, bush clearing, composting Tour operator services Travel agencies Tour guides / Chaperones Marketing services Training services

16 Real People, Real Jobs “From what I earned on Blood Diamond, I was able to afford to pay for my youngest daughter’s first year at a nursing college. I would never have been able to afford this on what I used to earn in the clothes factories.” Seamstress Eunice Gumede, wardrobe department, Blood Diamond.

17 BEHIND THE SCENES: THE HOBBIT http://youtu.be/tzubEQek900

18 Case Study 1: The Last Samurai

19 Direct Spend

20 Breakdown of Spend Line Item% Crew38.07% Equipment12.90% Set Construction7.59% Vehicle Hire7.26% Art Department6.99% Stock6.80% Talent6.48%

21 Success Stories Illinois: $25 million contribution to the economy in 2003, 75$ million in 2004, Louisiana: $4 million contribution to the economy in 2001, $125 million in 2004, $600 million to June 2005 (3000 jobs created; 27 films shot in 2004) $1 billion by 2009 New York: Incentives introduced 2004. $325 million extra contribution to the economy British Columbia: $801 million contribution to the economy (2004). Increased film tax incentives (2005) and generated an additional $350 million. 30000 jobs created, 197 films shot in 2004 - transformed labour hire practices.

22 SO WHAT WILL MAKE FILMMAKERS CONSIDER SPENDING THEIR MONEY WITH YOU?

23 DRIVERS OF PRODUCTION Costs / Cost-effectiveness / Value Diversity of Architecture & Geographical locations Availability of local hire of skilled cast/crew/equipment/services. Availability of Hotel & Tourism infrastructure Accessibility from airports (also parking) Diversity of Talent pool Government support / access / permits etc. Incentives Studios / Studio space Plus a variety of unpredictable dynamics that are out of a location’s control, such as seasonal weather, star / director personal preference, or storyline.

24 Cost Risk

25 VALUE ON THE SCREEN

26 WHAT GOVERNMENTS WANT Bureaucratic Processes / adherence to By-laws New dollars into the area thereby adding to the economic base Create local jobs and opportunities Pay higher-than-average wages in the area thus contributing to raising standard-of-living Investment in poor neighbourhoods, counties or areas Skills Transfer and local Training Tourism and Marketing Promotion

27 HOW TO REACH THAT BALANCE?

28 ABOUT FILM COMMISSIONS

29 Global Response Over 350 governments, at National, State, Provincial, Regional and City Levels, have understood to potential of film & media production as an economic driver. To handle their interests they have each created a Film Commission or Film Office.

30 What is a Film Commission? A “special purpose organisation” that contributes to the development of a buoyant, competitive, sustainable economy by developing, coordinating and marketing the film industry and film-related activities in a specific region.

31 Challenge 1 HOW WILL FILMMAKERS KNOW WHAT YOUR AREA OFFERS?

32 Challenge 2 HOW WILL YOU MAKE THE MOST OF ANY PRODUCTIONS THAT DO COME?

33 Challenge 3 HOW WILL YOU PREPARE THE GROUNDWORK SO THAT THE EXPERIENCE OF PRODUCTIONS IS POSITIVE?

34 Challenge 4 HOW WILL YOU TROUBLE-SHOOT SHOULD THERE BE PROBLEMS IN PRODUCTION?

35 Primary Responsibility “to attract film and video production to an area in order to accrue locally-realized benefits from hiring local crews and talent, renting local equipment, using Hotel rooms, rental cars, catering services, or any number of goods and services supplied on location.”

36 Brief History The first film commissions were formed in the United States during the late 1940's, when Hollywood began to move away from studios and onto location. As a result, there was need for film companies to have a local government liaison to coordinate local services such as police, state troopers and highway patrols, road and highway departments, fire departments, park rangers and all of the other essential municipal and government services for shooting a production on location. At the same time, jurisdictions realised that there was potential economic value from attracting the film industry, and they required a vehicle to market their offerings.

37 Film Commission Pioneer Harry Goulding, Utah 1938 – John Ford’s Stagecoach

38 What’s in a name? The term “Film Commission” came about because these offices emerged from a form of municipal government that was once common in the United States known as “City Commission Government.” In a city commission government, voters elected a small team of Commissioners who, as a group, were responsible for taxation, appropriations, ordinances, and other general functions. As individuals, the same Commissioners were also assigned responsibility for a specific aspect of municipal affairs, such as public works, finance, or public safety (remember Police Commissioner Gordon in Batman?) Once Film was accepted as a Municipal responsibility, one of the Commissioners became the Film Commissioner, and the relative department became the Film Commission.

39 Film Commission Models Film Commissions are usually funded by various agencies of government but they are housed in a variety of models: the governor’s office, the mayor’s office, chambers of commerce, convention and visitors’ bureaus, tourism offices, business and economic development departments.

40 International Norms? (ie. there is no international norm) 75% of Film Offices are Government Agencies 24% are Non-Profit Organizations (in the USA the split is closer – 51% to 45%) 45% of all commissions are managed by Boards of Directors 30% are direct government offices. 74% of film commissions are small one person offices with operations budgets of less than $50000 per annum 8-10% of all film commissions conduct their own fundraising.

41 Main Challenges WILL FILMMAKERS KNOW WHAT YOUR AREA OFFERS? HOW WILL YOU PREPARE THE GROUNDWORK FOR WHEN FILMS DO COME? HOW WILL YOU MAKE THE MOST OF ANY PRODUCTIONS? HOW WILL YOU TROUBLE- SHOOT SHOULD THERE BE PROBLEMS IN PRODUCTION? THE FILM COMMISSION

42 Main Functions Coordinating Local Offering Lobbying for Improvements to Local Offering Marketing Local Offering to International Clientele Troubleshooting issues arising from production on location.

43 Main Activities Acting as official central point of contact Marketing of locations Marketing of Local Crew, Equipments & Expertise Scouting Support Assisting Inbound Productions / Troubleshooting Production Problems / Facilitating Government responses Building a Film-Ready Workforce & Community Reporting

44 Marketing & Promotion Film Festivals, Film Markets and Film Business Events Trade Publications – Advertising & Editorial Social Media & Online Relationship Marketing Special Events & Trade Show.

45 Marketing & Promotion

46 Preparing the Groundwork Sourcing and coordinating the goods, services, talent and crew available locally – ensuring that the maximum number of local people and businesses can be proposed to work Preparing / briefing the workforce for the unique demands of production Ensuring that training establishments develop and offer courses to fill the gaps in the workforce offering Building a locations database, offering a broad cross-section of available filming areas locally. Ensuring that private landowners and building owners are fully briefed in the unique demands of production Creating a list of all permit officials and ensuring they are briefed.

47 Case Study 2: Lord of War 14 international locations In SA 27 international and 50 local cast members were employed 388 local crew were employed in SA 22 550 meals were served and 6 218 take-aways were ordered 54 528 bottles of mineral water and 2 890l of cold drink were consumed 168kg of filter coffee was brewed 415 vehicles were used and R800 000's worth of fuel was guzzled 1 Rolls Royce Silver Spirit and 1 Mercedes Benz truck were blown up In a week the crew drank 27 bottles of Jagermeister at the Pofadder Hotel

48 Case Study 3: I Am Legend Six nights of filming 14 government agencies 250 crew members 1,000 extras incl. 160 National Guard members, three Stryker armored vehicles & several humvees a 110-foot cutter, a 41-foot utility boat, and two 25-foot Response Boat Small craft. scene alone cost the studio $5 million

49 CASE STUDY 5 – THE HELP http://youtu.be/CLDiS-WgFrs

50 Troubleshooting Assisting the production should problems arise. In particular, liaising with authorities to ensure filming can go ahead.

51 Benefits of a Film Commission to Film Industry clients Local Knowledge Local Contacts Local Facilitation Local Resources A Local Ally Vision Professionalism Integrity

52 Benefits of a Film Commission to Local Government & Community Industry Knowledge Industry Contacts Skilled Facilitation A Local Ally Vision Professionalism Integrity Economic Development

53 Behind the Scenes: The Hulk http://youtu.be/iDkbrfjgNdY

54 NEW OPPORTUNITIES More recently, destinations around the world have begun developing an even broader scope for the Film Sector support programs – not merely addressing on-location filming, but by becoming the hub of ALL film related activity within a jurisdiction. The activities of Film Commission and Film Offices now regularly include: Developing Film Incentive Packages Encouraging the development of distribution of local productions Increasing audiences for film product particularly via film festivals Encouraging the study of film Encouraging the acquisition of film related skills Supporting a climate of entrepreneurship within the sector

55 TOURISM OPPORTUNITIES Steven R. Miller and Abdul Abdulkadri at the Center for Economic Analysis at Michigan State University quote Ernst and Young’s 2009 New Mexico report that $2.50 is generated in film tourism for every dollar of in‐state production expenditure. 1998’s The Annals of Tourism Research noted that locations where a successful film has been filmed, there is a 54% increase in tourism visits over four years.

56 Case Study 6: Miss Potter Hill House location, Lake District 2006 - 64,500 visitors 2007 - Film released 106,500 visitors 65% increase 2008 - 105,000 2009 - 103,000

57 Miss Potter effect. 75% of the box office from outside USA Japanese tourists average spend at Hilltop is $132pp Before 2006, retail income stood at around $543,000 per annum prior to 2007 After 2007 retail income was $889,000, (61% increase.) It has not dropped lower than $868,000 per annum since then. In 2007 the 4m x 7m shop had the highest turnover per metre squared for any shop in the National Trust

58 Tourism Successes The Lord of the Rings trilogy transformed New Zealand into a vacation hot spot. The Da Vinci Code has fuelled attendance records at the Louvre Museum in Paris and sent tourists flocking to a Scottish church in search of the Holy Grail. Sideways put Santa Barbara's vineyards and wineries on the map. And 17 years after its release, the baseball flick Field of Dreams continues to draw 65,000 sightseers a year to a cornfield in Iowa where they collectively spend over $1 million a year at the t-shirt concession.

59 SHOW ME THE MONEY – INCENTIVES OVERVIEW

60 Incentives Incentives: stimulate the economy create high paying jobs boost tax revenues.

61 Show Them The Money Financial Incentives Tax Information and rebate details Co-production information Soft money Locally applicable discounts Free hotel nights / car hire for location scouts

62 Types of Incentive Direct financial Incentives Indirect Financial Incentives Tax-based Incentives including Tax credit programs Abatements/reductions Exemptions Special geographic tax programs

63 Tax Credits Refundable Tax Credits Non-refundable Tax Credits Transferable Tax Credits Rebates/Grants Sales and Use Tax Exemption Investor/Investment tax credits Loan Programs

64 FILM IS EVERYONE’S BUSINESS Producers Local Businesses Local Communities Labour Government & Agencies Media

65 CONCLUSION A Film Commission can offer Leadership Vision Professionalism Integrity Facilitation Opportunity Cost in pursuit of harnessing the benefits offered by the global film sector.


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