During its semiannual national board meeting in New York this month, the Association of Independent Commercial Producers (AICP) set a multi-faceted agenda, which includes: initiating a program to help the production community tap into substantive filming incentives that have emerged in states throughout the country; launching an award to recognize those in the public sector whose work has generated tangible benefits for the industry; instituting an analysis of client guidelines; and creating a global communications infrastructure that will enable producers around the world to discuss issues and share ideas.
On the incentives front, the AICP intends to hold at least two seminars–one on each coast–and to develop a user guide so that producers can take full advantage of tax credits and other measures designed to keep and attract filming in various states and municipalities. New incentives have recently been passed and are slated to take effect in such states as New York, Hawaii and Wisconsin. Furthermore, incentives have been broadened elsewhere, a prime example being in Illinois which has expanded its tax credit on wages to cover virtually all production expenditures made in the state (SHOOT, 5/26). The new Illinois incentive is slated to be retroactive to May 1, 2006 and run through December ’07.
As chronicled in SHOOT in recent months, a major breakthrough was scored in the State of New York as the AICP played an integral role in helping to bring about an incentives program specifically targeting commercials. The state has allocated funding of $7 million for the filming initiative, including $3 million for a growth credit provision that encourages companies to increase the amount of work they bring to the state by providing a refundable tax credit of 20 percent of qualifying production costs on newly generated business. The amount will be based on the difference between the total qualified production costs of the current year and the total amount of production costs of the preceding year. The intricacies of the growth credit–such as coming up with the best way to verify total qualified production costs from one year to the next–are to be addressed in regulations that will be formulated in the coming months. These regulations governing how the incentives are to be applied will be drafted by the New York State Department of Budget, and the Governor’s Office for Motion Picture and Television Development.
The overall package of New York incentives–which also include upstate and downstate jobs credits–is scheduled to take effect in January 2007. At its meeting earlier this month, the AICP national board decided that the next logical step in the incentives arena would be to make sure that members are well informed in terms of qualifying for and deriving the proper benefits from these pro-filming measures.
AICP president/CEO Matt Miller said that the mood was decidedly upbeat at the organization’s board meeting–in part because of the gains made on the incentives front, particularly in New York. The advertising industry rebounded from a major setback in ’04 when New York’s Empire State Film Production Credit measure passed, covering theatrical features and TV programs but excluding commercials. The AICP immediately responded with a broad-based campaign to gain a series of incentives for commercials; that lobbying bore fruit this year.
However, rather than resting on those laurels, the AICP board now deems it necessary to follow up with an educational push so that its members will be equipped to realize the gains represented in all the incentive measures throughout the country.
AD-VOCACY In a related upbeat development, the AICP board decided to launch the ADvocate Awards in order to recognize people in the public sector whose work has resulted in tangible benefits for the commercialmaking industry. The first two recipients will be State Senator Martin J. Golden (R-Brooklyn) and Assemblyman Joseph D. Morelle (D-Rochester), legislators who offered pivotal backing to the New York State incentives program for commercials. The date will soon be set for when the honor will be presented to Sen. Golden and Assemblyman Morelle.
“The ADvocate Awards are a way for us to publicly single out people who have made a positive difference,” related Miller. “It enables us to publicly tell the industry at large that these are people who have gone to bat for us–these are public officials who in turn deserve our votes and support.”
AICP chapters can petition the national executive committee on behalf of worthy candidates for the ADvocate Awards. The executive committee will then decide who will receive the honor. Miller and AICP executive VP Steve Caplan noted that the ADvocate Awards will be bestowed whenever appropriate, meaning there can be multiple recipients in the public sector during the course of a given year.
CLIENT GUIDELINES The AICP board also instituted an analysis of client guidelines in order to educate its members about areas that warrant concern. Plans call for the guidelines of about a half dozen clients to be analyzed, published in report form and then distributed to AICP member houses by sometime late in the third quarter of ’06. Miller hopes to have the guidelines of a dozen clients analyzed by year’s end.
The analyses of client guidelines parallel the longstanding AICP program in which numerous ad agency production contracts are reviewed and updated. The AICP report serves as a road map to help AICP member production houses navigate their way through a maze of different agency contracts. The AICP study is designed to serve as a tool to raise awareness of contractual language and related issues, which range from receiving payment on a timely basis to postponement/cancellation contingencies, legal liabilities and proper identification.
Miller explained that extending this scrutiny to client guidelines will be a valued service to the production community. While the AICP, said Miller, has issued memos on individual client guidelines when the situation merits it in cases of onerous or egregious provisions, this will mark the first time that the AICP will offer a more comprehensive compendium of guidelines with detailed analyses so that production house executives can compare the policies of different clients.
GLOBAL VIEW At press time, the third annual World Producers Summit at the Cannes International Advertising Festival was about to get underway. The scheduled three-hour session enables production company executives from around the world to discuss issues and concerns, as well as share experiences. The event is held by the AICP in concert with the Commercial Film Producers of Europe (CFP-E).
Helping to set the agenda of topics to be discussed at the Summit was an AICP hybrid blog/chat room/bulletin board, a communications infrastructure in the beta test stage, which facilitated exchanges among producers from around the globe. They offered input as to what issues and developments were of particular concern to them, and which should be taken up at the Summit.
Miller noted that plans call for this communications infrastructure to enable producers to continue their discussion online, well after the face-to-face Summit has adjourned. He dubbed the dynamic as a World Producers E-Summit. “Our intent is to always have a channel open so that producers from around the world can engage in meaningful dialogue and exchanges about their concerns and industry issues,” said Miller. “Comparing notes as to what goes on in the U.S. as compared to Europe, for example, could prove useful to the production community at large.”
EMERGING MEDIA The AICP national board also approved the formation of a committee that will explore emerging media and their impact on the industry. This committee was in the process of being organized as SHOOT went to press. Once it starts to meet regularly, the committee will develop a detailed agenda.
Committees, said Miller, are being started to address emerging areas. For example, an AICP Hispanic market committee was recently established. For more on this group, see this week’s Hispanic Advertising Series.
