In the “Flashback” section of SHOOT‘s last issue of 2005, under the “10 Years Ago” designation, the lead entry was that Frank Stiefel, then president of Stiefel + Company, had been elected to a one-year term as national chairman of the Association of Independent Commercial Producers (AICP).
Fast forward to today and it’s Déjà vu all over again as Stiefel, now executive producer/executive VP of bicoastal/international @radical.media, has been elected to serve for the next year as AICP chair. He becomes the first person to have two separate tours of duty in that capacity.
Elected along with Stiefel during last month’s AICP national board meeting in Los Angeles was AICP vice chairman Bob Fisher, executive producer/owner of bicoastal Celsius Films. Fisher also begins a yearlong term. Reelected to a two-year term as treasurer and for an additional year as secretary were, respectively, Sally Antonacchio, VP of bicoastal The Artists Company, and AICP legal counsel Robert L. Sacks, an attorney with Kane Kessler, New York.
Matt Miller continues as AICP president/CEO, an appointed position. Steve Caplan is executive VP of the AICP.
ISSUES
Among the areas addressed at the AICP board session were labor and insurance issues, production incentive prospects in various states, and means to improve communication not only within the organization but also between the AICP and other industry sectors.
On the labor front, Miller noted that a prime topic was the actors’ commercials contract, which is set to expire at the end of October. He said it would be premature for the AICP to publicly discuss specifics about its national board discussion on the issue. Suffice it to say that the SAG contract is of concern and that the hope is that the industry can learn from the past. In 2000, actors struck against the advertising industry, which spurred on production of U.S. spots in foreign countries. This exacerbated an already serious runaway production problem, exacting a heavy toll on the American economy.
Meanwhile, as chronicled in SHOOT, production incentives are emerging or being proposed in various states. The AICP board examined the prospects for these initiatives, which largely include commercials. A key recent example is the package of incentives that will soon be available in Massachusetts (SHOOT, 12/9/05, p. 1).
Also of particular interest is the bid to gain passage for a spots-only tax credit incentive in New York State. As previously reported, the AICP has lobbied vigorously for this measure, which has gained bipartisan support in both houses of the New York legislature. The industry hope is that the initiative will be introduced–and passed–in the current state legislature session.
On another front, the AICP can look to positive change in ’06 as its annual AICP Show expands to honor commercials created for such alternative outlets as cell phones, iPODs, PDAs, and computer screens. These spots will be eligible across nearly all AICP Show categories, which will continue to recognize the best in TV and cinema advertising (see separate story, p. 1).
INSURANCE
The AICP board has issued an insurance guideline to help members get a better handle on this area. With advertiser wrap-up insurance, for instance, there’s confusion as to what coverage the production house should carry. In some cases, certain coverage can prove redundant. However, other insurance can help to complete necessary coverage.
The AICP guideline reads, “Production insurance–encompassing commercial general liability, non-owned and hired automobile liability and physical damage, errors and omissions liability, umbrella liability, foreign liability and group travel accident insurance for the production–has traditionally been purchased by the production company, but may also be provided by the client or the advertising agencies in policies known as ‘wrap-up.’
“When the production company is providing the production insurance for the job, the production company should indemnify, defend and hold harmless the advertising agency and the client. Likewise, when the advertising agency or client is providing the production insurance, the advertising agency and/or client should indemnify, defend and hold harmless the production company from any and all claims arising from the production regardless of the limits set in their policy, and the production company should be added as a ‘named insured’ on the policy for that job.
“The production company is the preferred procurer of insurance for the production since it is in the best position to understand the need for special risk insurance and since it is in a contractual relationship with equipment vendors and/or locations should there be a loss.”
The guideline concludes, “Whether production insurance is provided by the production company or the advertising agency and/or client, the production company is actively involved in the insurance process and there are costs associated with this involvement. For wrap-up, the production company must identify special risks, have insurance certificates issued or directed to vendors and locations, and negotiate and process insurance claims should the need arise. In most cases, the production company is required by the advertiser or agency to maintain ‘usual and customary’ insurance coverage in addition to that provided under the wrap-up insurance program. It is therefore appropriate that the production company include in its estimate a charge for wrap-up administration, purchased insurance (including coverage required by the wrap-up policy), and/or any coverage costs associated with uninsured risks.”
DIALOGUE
Miller noted that over the past year the AICP engaged in outreach programs to different segments of the business. For example, the group held meetings in Chicago and Minneapolis with agency heads of production and heads of business affairs to discuss guidelines and industry practices.
There was also a session between AICP representatives and senior management at The Richards Group, Dallas. Additionally, there was letter writing back and forth between the AICP and the head of advertising at Mitsubishi regarding that advertiser’s guidelines.
Miller said that the AICP plans to accelerate efforts to initiate dialogue and share ideas with varied sectors of the industry, including agencies and clients. He reasoned that open discussion can prove valuable to all involved parties, and promote awareness of the big-picture impact made by policies and practices.
Beyond improving communication between the AICP and outside entities, the board hopes to do the same from within in terms of reaching its members, identifying, discussing and addressing their concerns. During the past year, the AICP has issued bulletins and updates on labor, business affairs, government affairs and other topics, with links to reference tools and resources. This organizing of info, said Miller, has made such communication more relevant to AICP members.
Miller said the AICP is looking to build upon this, taking communication to the next level, yielding greater interactivity through online conversation areas, blog-format communications, and forums to facilitate the expression of opinions. “We want to become more of a direct-info house, creating tools to help people as they run their day-to-day business,” related Miller.
Also under consideration is the formation of AICP committees or councils to address such areas as emerging technology and Hispanic advertising.
