As covered in this issue’s lead story, the economic squeeze is tightening on commercial production houses. Indeed the financial pressures being exerted in the marketplace–particularly the slow payment dynamic–proved to be a significant factor in the closure of longstanding production company Villains. Dating back to its predecessor shop GMS, which opened in 1985, Villains enjoyed a 23-plus year run (the Villains banner was established in ’97) until its owner John Marshall closed the Los Angeles-based company in October.
SHOOT recently caught up with Marshall–a partner in GMS and then Villains before becoming the shop’s sole owner a couple of years ago (SHOOT, 1/26/07)–to gain his reflections on growing industry challenges that triggered his decision to pull out of the business.
“The business isn’t as much fun as it used to be for production companies generally,” assessed Marshall.
“Slow payment was just getting very difficult for us. And seeing what GM [General Motors] is doing now in terms of delaying payments even further [see the earlier referenced front page story] makes the situation even more difficult. GM has been a leader in trying to do its own guidelines.”
Add to this the growing prevalence of sequential liability by which agencies won’t pay production houses according to the contractually agreed upon timetable if they haven’t yet been paid by the clients, and you find the production community bankrolling in many cases large multi-national agencies and clients for extended periods. Even those houses that have regularly fronted money for inordinate periods of time are finding it more difficult to do so now in light of a credit freeze that has made getting short-term financing pretty much improbable, if not impossible.
“Getting lines of credit is hard,” said Marshall. “And no bank in its right mind would loan you money on a GM contract. We’re in a climate where everybody is squeezing everybody and that contributed to our deciding to close Villains. I love this business. It’s been very good to me over the years. But now as far as my getting back into it, I think I’d rather take cyanide.”
Marshall noted that if the squeeze continues, clients and agencies will find themselves with more limited choices in the production community as more houses will have to close. “They’ll wonder,” said Marshall, “why a bunch of 25-year-old kids are running their production with little or no clue about advertising.”
Marshall observed that the handwriting has been on the wall for some time. He said that the actors’ strike of 2000 took a major bite out of the business as clients who were forced to go overseas to shoot learned they could continue to run those spots for years sans having to pay residuals.
Marshall also referenced an AICP study done years back in which a UCLA business professor characterized commercial production practices as being part of a bad business model. “I remember him making such points as we are managers of directors careers and not getting paid for it. We are showing our markup to our clients, which is something that most businesses would never do,” said Marshall. “Though we don’t do cost-plus anymore, it’s like the business has become cost-minus for many production companies.”
As for his future plans, Marshall said he has several businesses and interests outside the spotmaking industry which he will likely pursue. And in the big picture, Marshall can’t complain given the long run enjoyed by Villains, which includes, he said, helping to launch Smuggler, a production company success story. “I’ll miss the many friends I’ve made in the business and getting to collaborate with them,” affirmed Marshall. “I’ll also miss line producing which I love to this day.”
Review: Director Jon M. Chu’s “Wicked”
It's the ultimate celebrity redemption tour, two decades in the making. In the annals of pop culture, few characters have undergone an image makeover quite like the Wicked Witch of the West.
Oh, she may have been vengeful and scary in "The Wizard of Oz." But something changed — like, REALLY changed — on the way from the yellow brick road to the Great White Way. Since 2003, crowds have packed nightly into "Wicked" at Broadway's Gershwin Theatre to cheer as the green-skinned, misunderstood Elphaba rises up on her broomstick to belt "Defying Gravity," that enduring girl-power anthem.
How many people have seen "Wicked"? Rudimentary math suggests more than 15 million on Broadway alone. And now we have "Wicked" the movie, director Jon M. Chu's lavish, faithful, impeccably crafted (and nearly three-hour) ode to this origin story of Elphaba and her (eventual) bestie — Glinda, the very good and very blonde. Welcome to Hollywood, ladies.
Before we get to what this movie does well (Those big numbers! Those costumes!), just a couple thornier issues to ponder. Will this "Wicked," powered by a soulful Cynthia Erivo (owner of one of the best singing voices on the planet) and a sprightly, comedic, hair-tossing Ariana Grande, turn even musical theater haters into lovers?
Tricky question. Some people just don't buy into the musical thing, and they should be allowed to live freely amongst us. But if people breaking into song delights rather than flummoxes you, if elaborate dance numbers in village squares and fantastical nightclubs and emerald-hued cities make perfect sense to you, and especially if you already love "Wicked," well then, you will likely love this film. If it feels like they made the best "Wicked" movie money could buy — well, it's... Read More