The lesson learned in the Midwest is that the “I”‘s have it, the “I”‘s being incentives and infrastructure. Without one or the other in today’s competitive marketplace and economy, business prospects falter. Consider California which has production infrastructure of historic proportions–both talent and resources–but no financial or tax incentives program for filming.
The Golden State is losing production, particularly features and commercials as reflected in recently released year-end (2008) statistics in Greater Los Angeles (SHOOT, 1/16), with officials citing a lack of an incentives initiative to counteract the measures that have been enacted in most other states. And the lack of incentives can over the long haul erode infrastructure.
Conversely incentives can help to build infrastructure as investors see the prudence of building facilities and gathering resources to work in tandem with financial perks that will attract filming to their regions.
In the Midwest, incentive and infrastructure carry great promise and in many cases have already translated into more production for different states in the region, perhaps most notably Illinois, Michigan and Wisconsin.
A prime example is Wisconsin which has firmly in place its 25 percent Film Tax Credit program with two types of credits (for more info, log onto www.filmwisconsin.net).
In turn this incentives program, for which commercials are eligible (as long as producers file an application prior to the shoot) has helped to spawn infrastructure, a centerpiece being RDI Stages, Wisconsin’s first and only independent studio rental complex, which formally opened with a gala party on January 8. Consisting of two separate buildings at a combined 27,000 square feet of space, RDI is nestled in the residential suburb of St. Francis, just outside downtown Milwaukee. The complex, which offers four stages–the largest being 4,800 square feet with full support resources–was two years in the making at an investment of some $6 million.
Management exec Janine Sijan-Rozina and noted photographer Tom Davenport, co-founders of longstanding still photography studio RDImage, which has clients in the advertising and corporate sectors, were early adapters to the Wisconsin film tax incentive program, understanding the opportunity it provides the creative community and the revenue it will bring to the state.
In response, Sijan-Rozina and Davenport partnered with noted real estate developer Darrick Dysland to ultimately launch the sound stage and film campus RDI Stages, which offers not only soundstages but also high-end production office space, a digital still photography studio, a recording studio, an interactive media design firm, full kitchen facilities, and adjacent space for lighting, grip and set building.
Furthermore RDI Stages is looking to build a local talent pool to meet production needs. The facility has entered into a relationship with Milwaukee-area post secondary schools with established film programs, enabling them to tap into the RDI resources and apply coursework to real industry applications. Students and schools benefit as does Wisconsin itself with homegrown talent that can fill crew and other industry-related positions, making the state all the more attractive to prospective feature, TV, commercial, music video, multimedia, interactive and other projects.
RDI Stages has connected with such educational institutions in the state as MATC (Milwaukee Area Technical College), the University of Wisconsin at Milwaukee, and Marquette University.
“We’ve partnered with these schools, offering them internships to help increase the depth of a talent pool that already has great crews,” said Sijan-Rozina. “Besides adding to the depth of talent here, we are also helping to cultivate a new generation of crew members and artisans for the state–talent who hopefully will stay in Wisconsin as we develop employment opportunities.”
Sijan-Rozina added that the post secondary schools are becoming more sophisticated in their training and resources. For example, MATC, already established as a leading photography school, has expanded its communications and creative arts program, putting in place a state-of-the-art motion capture system for students.
Incentives As for other parts of the Midwest, Illinois recently passed a significant increase in the state’s filming incentives program, establishing a 30 percent tax credit on total production spending in the state for qualified theatrical features, TV programs, commercials and ad-related projects (SHOOT, 12/19/08).
A major impetus for the passage of the new incentives was the increased competition for filming business, particularly from nearby Wisconsin and Michigan. The latter has a 40 percent tax credit for features and TV. Reportedly Michigan is eyeing the development of new TV and movie production stages, reasoning that this key infrastructure component will help to create and maintain production-related jobs in the state.
Yet all is not rosy as commercials remain a glaring omission from the Michigan incentives program. Industry folk in Michigan have on their wish list making spot production eligible for state incentives, as reflected in a SHOOT survey of execs and artisans in the Midwest. SHOOT posed the following two questions in the survey:
1) Given the state of the economy, what are your plans to make the most of 2009? Crossing over and/or diversifying into other kinds of work and/or markets? Rethinking how you position yourself, your offerings, your talent to the marketplace at large?
2) What should the Midwest do or consider to take full advantage of opportunities in the new year?
Here’s a sampling of the feedback we received:
Tom Duff, president, Optimus, Chicago
1) Our plan for 2009 is really an extension of what we started in 2008, that of combining our postproduction strength and reputation with a new way the production model can work with ONE at Optimus headed by John Noble. It’s a model where efficiency and creativity are one and the same. It’s the one-call, one-stop shop for all our clients production and postproduction needs. There are tremendous economic benefits we can offer by having all services under one roof. Couple that with the inherent advantage of having full control of collaboration with the client, and you have the best of both worlds. We are also set up to be able to collaborate with not only our agencies, but production companies and other editorial houses as well. In today’s climate, we all need each other to win this game, none of us can do it alone, but partnering with agencies, and competitor/partners is a win-win for all.
2) We in the Midwest would be well served by all of us helping each other, from the AAAAs to the AICE and the AICP. I guess this can also apply nationally, but might be more effective on the local levels. The new technology challenges surrounding the move to DTV, the new cameras, and the file-based workflow is throwing us all in a frenzy. Throw in the different format requirements from the networks and you have organized chaos at best. If we all get together, form committees to develop guidelines and seminar material, we could help each other through this crazy transition.
Kimberly Fairman, director of sales & marketing,RingSide Creative, Oak Park, Mich.
1) RingSide Creative has a broad range of capabilities. The integration of our services is highly valued by our clients. The result is increased efficiency and an end product that is stronger and consistent with the creative vision. We plan to fully embrace the value of our integrated approach. Our range of capabilities allows us to easily pursue opportunities in new markets.
2) Pray for global warming…all kidding aside, we should do everything possible to keep work in the region.
Samantha Hart, president, Foundation Content, Chicago
1) 2009 marks Foundation’s five year anniversary. During this time we have grown from a core of four people to a staff of 30. This year we plan to expand our Los Angeles production unit and continue to foster our young, creative talent.
2) The obvious answer is to take advantage of the Illinois tax incentives and encourage clients on both coasts to “go mid-coastal!”
Don Hoeg, director/owner, RADAR Studios, Chicago
1) FX artist John Truckenbrod and I opened RADAR almost 10 years ago as a visual effects production company that handled jobs from conception to finish. We created a niche in the marketplace as a one-stop shop for great creative work. Although we have expanded our staff to include CG directors Mark Angres and Sean Skube, our 2D/Design team, the Gray Bros. & Matt, editors Greg Somerlot and Brian Willard and live action director Sam Macon, very little has changed about the actual way we work. As a tight-knit group of artists, we continue to produce spots using every technique, including live action, design, FX, stop motion and CG. Last year we increased our production capabilities with the expansion of our stage space. We are uniquely positioned for this marketplace, but this is nothing new for RADAR. We have worked as a lean creative shop from the start. Hands down, our team had their best creative year yet in ’08. Our plan for RADAR in ’09 is to continue to find more challenging work for our team and to continue to excel in all the creative we produce.
2) Doing great work leads to opportunities to produce even better work. Regardless of where you are located.
Tim Jacobs, executive producer, Protein Editorial, Chicago
1) Protein Editorial launched a model that represents top independent editors as opposed to a traditional salaried roster. Our model really lends itself to the state of the economy by allowing scalability of each project according to the requirements of the job. The beauty of this niche is that we’re able to match the best editor for the job without being restrained by who’s in house. We’re headquartered in Chicago with our core group of editors here and in L.A. Our talent remains independent, while working closely with us to market and produce their work. This partnership is beneficial to both the editors and us. From a marketing standpoint we’re setting up traditional screenings and introducing people to the amazing body of work we’ve collected from our editors. We’re also using a U.K. based company called GetAReel to customize and deliver reels seamlessly. Other than that we believe that this industry is only as strong as its community. Therefore, we’re doing everything we can to support the Midwest community in these tough times. The best example of this can be found on Oak Street beach, where many industry folks gather every Wednesday during the summer to watch the sunset and play bocce ball in Beach Bocce Ball League created by Dominic Bernacchi (West Coast sales rep. @radical media) and myself. This is not only an inexpensive way to have fun, but it’s a great place to network as well.
2) I believe the Midwest should try to support the Midwest production and postproduction community as much as possible. There are so many talented people in this market, it’s amazing. After spending the last 10 years on the West Coast, I was encouraged about how deep this market really runs. I believe that the community here really believes in each other and believes in this market. Not to mention they get to play Beach Bocce Ball in the summers!
Don McNeill, president, Digital Kitchen, Chicago
1) Digital Kitchen is already an incredibly diverse company, responsible for work in motion graphics, movie and TV titles, live action, experiential, guerilla, web and retail. So for us, it’s not about diversifying or crossing over, but rather focusing our time and efforts. It’s our belief that in today’s market, we need to provide a point of difference. And in a downturn, that point of difference is value. We feel we’re well positioned, because we ideate, create and execute. When you can control all points along the compass, you create better integration and better value for money.
There’s no doubt that the local market had a tough year and we all will face a tough 2009. But the good news is that more than ever, technology has allowed us to work beyond geographical and psychological boundaries. Although we’re based in four cities, we don’t feel tied to our geography; we are one company, capable of servicing business wherever we find it.
2) I think the Midwest feels its limitations due to decades of being perceived as only fit to handle packaged goods, beer and automobiles. Because of the niche the Midwest carved out and because of the traditional stability of the client base, there has been little reason to evolve as rapidly as the East and West Coasts. This year, however, it’s unavoidable. The economic climate is going to force change, and that’s a good thing. If navigated properly, these lean times will force agencies, production companies and clients to explore alternative, creative solutions and bolder moves. The opportunity exists to break free from the stereotypes that have held the Midwest back and allow us to define the future on our terms.
Michael Suggs, managing partner, Milagro Post, Southfield, Mich.
1) We’re optimistic about 2009. Now, more than ever, diversification is key to survival given the state of the economy. Commercial work is only part of what we do. For Ron Rose Productions and Milagro Post, the Michigan film incentive continues to be a revenue source for us. We’ve leveraged our technology and infrastructure to service filmmakers. There is more and more interest from filmmakers to shoot and post in Michigan. Ron Rose has been providing ADR and looping services for major motion picture studios (i.e. Paramount, Twentieth Century Fox) as well as independent studios for a number of years. From editorial to deliverables, Milagro has been providing Digital Intermediate solutions to filmmakers and ad clients for almost three years. Web development is yet another revenue stream for us. Our web group provides turnkey services for web development by designing, building and hosting custom web solutions. We create and deliver content for cinema, TV, web and mobile providing an integrated experience for filmmakers and ad clients. We continue to explore new business ideas.
2) In Michigan, there is a real need for the inclusion of commercial film projects to the language of the state film production incentive. This would be especially meaningful for the automotive industry. GM, Ford and Chrysler spend millions of dollars annually in the production of their ad campaigns. The ad agencies that service them are in Michigan. With a potential rebate of up to 42 percent of all dollars spent on qualifying productions, they could use the incentive to stretch their ad dollars. And, in turn, provide much needed jobs and revenue, not only for those of us in the business, but also for many merchants, vendors, and retailers here in Michigan. This is evidenced by recent film productions shot here.
Steve Wild, president, Grace & Wild, Inc., Farmington Hills, Mich.
1) Grace & Wild is no different than most of the surviving businesses in our marketplace who have continually embraced the need for change and reinventing their organizations. After all, our technology dependence has required reinvestment for analog to digital, digital to high definition, high definition to 2-4-6-8K data; and now, delivery of 3D stereoscopic visual images for broadcasting, movies and videogames. This process has been an evolution, not a revolution. Of course, the process of “crossing over” and “diversifying” is not something you decide to do and then implement the next day. But what’s different this time around is while we are still evolving to service higher resolution demands, we are also striving to repurpose our resources to create and deliver content to media channels that have quite different requirements, such as web and podcasts, mobile messaging and advertising, digital signage, etc. Following our customers’ needs and interests, several years ago we began a migration from being a traditional “broadcast quality production and post technical services provider” toward providing more creative and project management services for development of new media content and distribution. New for 2009, Grace & Wild is formally debuting its “Emerging Media Solutions” operating division (www.emergingmediasolutions.com, or, www.gracewild.com/emerge). Within the EMERGE group, we have developed certain talent and skills we feel are unique, and which have allowed us to benefit our clients with services that bridge the void between producing for broadcast and alternative media delivery channels.
2) Like many Midwest states, Michigan recently passed a film incentive package. While Grace & Wild’s hdstudios and Filmcraft Imaging divisions have benefitted from new business created by the program, it’s no secret our Detroit ‘auto-centric’ advertising community has endured great pressure recently. Unlike other economic downturns, advertisers don’t believe that ‘selling harder’ is a solution, and budgets have been decimated. Also, other entertainment projects are suffering from lack of funding sources. Economic adversity no longer creates more work for the advertising community (ever changing auto pricing and financing offers often carried us through periods of turmoil). This time, all businesses, in all industries, are suffering….media not excluded. I doubt anyone has a viable answer to this dilemma, but I will be very interested to read this article and see if someone has a “magic bullet” to help the Midwest, and the rest of the nation for that matter.
