Film commissioners from around the world are currently in Wellington for the 33rd annual Association of Film Commissioners International (AFCI) Cineposium 2008 which is running from Nov. 19-23.
Peter Jackson, the Academy Award-winning director of the Lord of the Rings trilogy which filmed on location in New Zealand, noted, “It’s great that the AFCI Cineposium brings film commissioners together to learn and exchange information and best practices. Ultimately, it helps filmmakers like me who work on a variety of locations and rely on the local film office to partner with our production teams on the ground. It’s even better news that Cineposium will be in Wellington. The region is a terrific environment for filmmaking and filmmakers. The residents and local government are incredibly enthusiastic, helpful and friendly.”
Wellington’s film commissioner, Delia Shanley, manager of Film Wellington, described Wellington as being “a world leading center of screen production. We at Film Wellington are incredibly honored to be hosting this year’s Cineposium and extend a very warm welcome to all the international attendees. The event provides the perfect opportunity for all film office representatives to share ideas and production experience, and also allows Wellington to showcase the success of its screen industry.
“As the longest running regional film office in New Zealand, Film Wellington is focused on keeping Wellington film friendly and provides a free support service to international and local screen productions.”
While Wellington has become a focal point thanks to the Cineposium, the fact of the matter is that both Australia and New Zealand are piquing worldwide interest from the filmmaking community, including those in the advertising industry.
So at this opportune juncture, SHOOT sought feedback from executives at leading commercial production houses Down Under to get their take on the state of the business.
We posed the following questions:
1. How has the troubled global economy impacted commercialmaking in your country–or is too early to tell?
2. Where is your ad industry-related business coming from (agencies in your own region, stateside, Europe, Japan)?
3. What is the nature of that business–TV commercials, longer forms of varied advertiser-sponsored content? Feel free to cite some of your more recent ad-related projects.
Here’s a sampling of the feedback we received:
Anna Fawcett,
executive producer,
Filmgraphics Australia
1. Well before the global economy crashed, the advertising industry as we know it was changing. Budgets for TVC production were and still are challenged. Obviously the crash has further diminished the amount of conventional production being done and the money spent on it. And also had an effect on the type of work being done by agencies; we have seen an interesting mix of projects over the last few months. This business has changed and will continue to do so, though not just because of money.
2. Filmgraphics has a great reputation which in this age of uncertainty is a definite plus and this brings in scripts to us from around the world. Over the last few weeks we’ve quoted for Germany, Singapore, Australia, USA and China. The Asian market has become a huge source of business, and this is apparent by the fact that USA companies are opening offices there.
3. A positive thing that has come out of this crash for Australia is to make our currency low against the USA dollar so we are again viewed as a country where your budget will go a lot further. The art of survival is to have a bigger client base than your own country, know your craft and be able to make the budget go further through clever solutions, and to diversify into other areas. We released a feature film this year in the States called Restraint and made a TV series for the Weather Channel.
There are other projects we are working on, which if we want to be the first to do them, I shouldn’t mention in an article in SHOOT.
Lizzy Nash,
executive producer,
Walkabout Films (production services firm), and founder/executive producer, The Feds (production company focused on content creation in an emerging new media environment), Australia
1. It’s too early to tell however, two major commercial networks have had major advertising forecast write-downs which has in turn dropped their share prices. We have yet to see a trickle down effect make its way into the advertising realm.
Although we are way behind the Northern hemisphere, digital and content client exploration and demand are definitely growing.
2. The Australian dollar is at its lowest in five years so there is heightened interest from all countries but work is still primarily coming from the U.S.; however U.K. and German production affiliates are currently pursuing offshore facilitation projects.
On the local side–main play commercials work is coming from Australia and Asia with a continuing growth in local content and digital projects.
Paul Prince,
managing partner/CEO,
The Sweet Shop, Auckland, N.Z.
1. The Sweet Shop, NZ, had the biggest month ever in October. Between the great exchange rate, the good will we’ve created by our global initiatives in the States and Europe/U.K. and the signing of new talent, we are counting our lucky stars that the business hasn’t suffered.
This is not to say that it’s not tougher, that fighting for jobs is at its fiercest or that even booked jobs are wobbly right up until the first payments. It’s just that we have a unique selling proposition along with the kind of creative assets that have helped us manage through and I dare say, to flourish.
2. We have become a truly global company. We don’t rely on any individual market or agency. And we are as happy to do work out of Eastern Europe or the Middle East, the States or Austral Asia. Our job is to offer smart creative and financial solutions to all markets equally.
3. Despite the downturn in the global economy, in general, of course, advertisers still support TV advertising as a first line of marketing attack. That business is still a requisition business that is key to our company. Although our company is creatively driven first, we have begun, in fact, to discuss with enlightened agencies making custom production arrangements with global TV clients who are influenced by a procurement mentality that has begun to infiltrate global marketers.
As daunting as it sounds, this is an exciting prospect that we project will have greater impact on the business in the mid and longer terms. Several top heads of television are rightly anticipating their clients’ needs by investigating new models for taking advantage of currency exchange and the reduced cost structures we can offer out of New Zealand. We are very fortunate indeed to have come from a place where this is within The Sweet Shop’s core offering.
Jonathan Samway,
executive producer,
PRODIGY, Sydney, Melbourne, and Auckland
1. An overall slowing of consumer spending is definitely taking effect, which does give us the impression that we’re looking straight down the gun barrel of an economic downturn. So, naturally we would expect there is downward pressure on client budgets and much greater pressure on delivery of results.
However, this is not entirely the situation locally, as the trigger hasn’t been released and TV commercial production has still maintained its forward momentum.
A positive point for the US market is that our dollar has dropped to its lowest in over five years. This is proving to be a windfall for U.S. productions companies and U.S. agencies looking to shoot offshore and have tired of the South African and South American locations they have used in the past. Also U.S. agencies are looking to source creative talent at its source.
Overall we know that the downward pressure on budgets, the upward pressure of clients’ expectations causes a high degree of competitiveness for advertising production, but these are becoming permanent fixtures in the industry landscape and nothing entirely new to us. At this point, the overall pace of the troubled global economy creeping into our country, feels relatively slow.
2. PRODIGY’s large source of advertising production is generated in Australia as well as New Zealand–and currently to a lesser sum, although in no way of less importance is South East Asia.
Whilst it’s not yet a thing of the past to work in partnership with the global advertising industry, there is definitely a downward spiral and the implementation of buying global production is becoming less frequent. The key for PRODIGY in meeting the challenges of global economic crises is to have offices in more cost efficient centers (Australia and New Zealand). And this then enables international clients to find the most cost effective and creatively fulfilling destination for their productions.
3. In essence the nature of PRODIGY’s business within advertising production is TV commercials — it’s a durable product, that is and at large will always be the stronghold of advertising. PRODIGY’s year has resulted in one of its finest years to date, leveraging multiple car commercials including 3 x brand spots for Toyota–RAV4, Kluger and HiLux–as well as international car work for Honda. Other projects of note are a beer spot for Carlton Mid-Strength as well as international work for Canada’s Capital One credit card.
Mike Vanderfield,
executive producer,
8 Commercials, Sydney
1. It’s possibly too early to tell, but if you subscribe to the ‘expectations effect’ of economic theory then we are in for a bad time ahead, because the general doom and gloom in the media is saying we are in for a big and prolonged recession, so the expectation is there in the press. However, some people feel that advertisers need to advertise more in tough times to maintain their profile in an increasingly competitive environment.
Our business is definitely down this year, but that is as much to do with advertisers flocking to the internet and turning away from the traditional 30 second TV commercial as it is with economic downturn.
2. Primarily Australia and Asia. The exchange rate is currently good for US and European agencies to come ‘down under’.
3. Standard TV commercial work is still our core business. We are currently doing a large Christmas TVC campaign for a local client and a Japanese car commercial.
