lucastalent.com

April 23, 2009

RICHARD’S RANT - WHY AM I NOT WORKING?

“Why am I not working…what’s going on? I read in the paper that all the BC studios are busy and that it is going to be a terrific year.”

We are hearing this from a lot of clients lately. I know that everyone wants to “get out” more and that many of you are feeling the financial pinch, so I wanted to give you a comprehensive report on the current climate in our business.

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SAG STALEMATE: Since the SAG contract expired on June 30, 2008; there have been few to no STUDIO feature films (this does not include companies such as Lionsgate and the Weinstein Company who are not in AMPTP and as such have completion agreements).  Some analysts say there are up to 200 feature films on hold.   Around September, we started to see a mass movement of film actors to TV projects.  Due to the lack of studio feature film production, BOTH film and TV actors are now competing for a limited number of jobs in the episodic and pilot environments. The good news is that a tentative deal in this nine-month dispute has been announced (which still needs to be put to the membership for ratification).

PILOT SEASON: During the Writer’s Strike of 2007-2008, Studios adapted and used the void to eliminate pilot season as we know it.  Gone are the days of hundreds of pilots.  In fact, this year, there were only 67 pilots to have registered for production – of which only about 35 have been green lit for production. (click ‘more’ tab to continue reading)

And this year, due again to a sagging economy, studios and networks believe that by committing named stars to their projects, they would receive more money from this year’s up-fronts from ad agencies. They are banking on star power to leverage better buys at the all-important UPFRONTS.   So, stars like Richard Dreyfuss, Chevy Chase, Brittany Snow, Elle McPherson, Rebecca Romijn, Ashley Simpson, Skeet Ulrich, and proven TV talents like Kelsey Grammar, Eric McCormick, Jenna Elfman etcetc….  You do the math, 37 pilots… top stars being sought.  While TV work has been steady, due to the conflagration of film and named actors doing Guest Starring roles, we have seen a horrible trickle down.  Many Guest Stars are now doing Co-stars and we are fighting for developing actors to be seen at all. In regard to American projects filming in Canada, we are feeling like there are more Americans being permitted to work, and for smaller roles.

ECONOMIC IMPACT: We are seeing the erosion of quotes. Due to the availability of so many talented actors, CD’s and Producers are in the driver’s seat in negotiations.  When they say, “well we got someone else who will do it for less”, they ain’t kidding.  And don’t think this is limited to actors…for example, casting folks have rolled their rates back 15 years and the DGC allows directors rates to role back as much as 70% on a low budget 2 hour project! In short, quotes have eroded and for many, the minimum has become the maximum pay.

I know it is easy to be sceptical over the studios, networks, cablers, production houses, show runners, etc, losing money, but it is a cold-hard fact right now.   These entities are truly in a difficult spot.  If you have read much lately, there have been dramatic cut backs at every studio and network, from firings to asking show runners to cut existing budgets. Furthermore, they are largely owned by conglomerates who have lost in the billions over the last year. Locally you can note cutbacks like huge number of employees at Insight studios and many of our casting directors giving up their offices and studios to work from home.

COMMERCIALS: One analyst said last year, that 2008 was the worst commercial market since maybe 1974. Think about it… three of the top products/services for ad agencies are banks, cars and other financial services – all of which were struck down in 2008/early 2009 by this recession.  This was confirmed when news struck that even the Super Bowl did not sell out advertising this year. And in Vancouver, the vast majority of 2009 commercials so far have been NON union gigs.

In short, our business is both in crises, and in a period of change. The film and television business in Canada, Hollywood and worldwide is being challenged on multiple fronts – labor uncertainty, paradigm shifting and the ‘great recession’. All I can say is that in my opinion the current system needed a good shake up and a reality check…Some industry sources I really trust believe we will move through this phase by the beginning of 2010. I hope they are right, as I know many of our clients are discouraged, and both artistically and financially challenged. I truly do feel light at the end of this tunnel, but for now, buckle up, the rest of 2009 may be a bumpy ride.

As always, our battle cry at the office remains … ”We’re here…we’re sober”

Until the next rant…Richard L

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WITH THANKS TO… Variety…Vanity Fair…anonymous LA agent letter…Vancouver Sun…Globe and Mail…Hollywood Reporter

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A QUICK OVERVIEW AND SOME FACTS TO PONDER…

THE BAD NEWS

-CTV has just laid off one third of the network’s workforce.
-Rival CANWEST has formally asked regulators to loosen the programming for prime-time rules so they can air less scripted drama and move to less expensive forms of programming.
-CBC is threatening to show more US programming as their ad revenues and funding tumbles.
-Other than SANCTUARY, there are NO BC series productions shooting this year and hope is slim for pick-ups for pilots like HICCIPS…MEMORY LANES…SHATTERED…THE CULT.
-In today’s Hollywood, showbiz is hitting the skids, jobs are hard to find and paydays are dwindling.
-Television broadcasters profits are plunging both in the US and Canada.

THE GOOD NEWS

-Cable television is what is generating audience excitement today and US broadcasters are having to find new ways to bring programming to air for less money…with the Canadian dollar sitting around 80 cents this is very favourable to seeing more US production in Canada.
-US networks are looking to reduce the cost of primetime programming costs as their advertising revenues are forecast to shrink by 11% this year. They are buying Canadian television to cut costs (FLASHPOINT and THE BRIDGE on CBS…THE LISTENER on NBC).
-At least one MAJOR Hollywood production company is rumoured to be relocating to BC
-FOX series FRINGE starring home-boy Joshua Jackson is moving to Vancouver next season-hopefully will be more to come!
-In efforts to continue to attract business, in 2008 the BC government raised tax credit rates and expanded eligibility for domestic “credits”.
-BC government, the BC Film Commission and the Motion Picture production Industry Association of BC ALL predict that 2009, once we get going, should be “a good year”.
-Although “Hollywood’s malaise is akin to those of the whole economy, history tells us that the entertainment business can do well in a recession or depression.