On-location production in Greater Los Angeles rose 18 percent the first quarter of 2010 as compared to the same quarter last year based on figures released by FilmL.A., the not-for-profit community benefit organization that coordinates filming permits for location shoots in the City of Los Angeles, L.A. County and other select local jurisdictions in the area. A total of 11,087 permitted production days (PPD) were recorded for January-March 2010, compared to the 9,408 logged during the first three months of ’09.
Helping to drive this growth were commercials which jumped a whopping 61 percent from 1,266 PPD during the first quarter of ’09 to 2,034 PPD for the same period this year. The increase provided the commercials category–beset by annual declines since ’06–its strongest quarterly showing in three years.
The quarter saw a marked increase in the number of automobile commercials, which had fallen off in ’08 and ’09 as the recession led to reductions in ad spending. Sixty-six car spots were shot on location in L.A. during the first three months of ’10–31 more than were lensed the first quarter of ’09.
There’s been industry conjecture as to what has fueled the jump in automotive ad activity, a prevalent factor cited being the massive recall of Toyota models due to safety concerns. For one, Toyota itself seems to have stepped up its spot production to retain business in light of the problems it’s encountering, with deaths and accidents being attributed to alleged acceleration problems in several of its vehicle models.
At the same time, other automotive manufacturers view Toyota’s woes as an opportunity to win back marketplace share, thus spurring on the creation and production of aggressive ad campaigns.
In the big picture, a turn in the economy from recession to at least a slow recovery may have sparked increased commercial production spanning automobiles and other product categories.
Additionally, FilmL.A. spokesperson Todd Lindgren cited the Winter Olympics–a mega TV event–as a first quarter catalyst for the jump in spot location filming which benefited Los Angeles.
Impact of incentives
Still, though, some question whether the upturn in commercials can hold over the long haul given California’s lack of financial incentives for spot production as compared to many other states which offer tax credits, rebates and other economic enticements to the advertising industry.
By contrast, California does offer an incentives package for certain qualifying feature film and TV projects. The California Film and Television Tax Credit has helped Greater L.A. register a one percent gain for the just wrapped quarter (929 PPD) as compared to the same span in ’09 (921 PPD). From January through March ’10, a total of 11 state-incentivized feature film projects shot on location in the region, translating into 184 PPD or 20 percent of the quarterly yield for this year’s opening quarter.
“I can say with certainty that most, if not all, of the incentivized feature films would not have shot in California were it not for out tax credit program,” stated Amy Lemisch, director of the California Film Commission, which administers the program.
Meanwhile TV production–which has endured three consecutive quarters of double-digit percentage losses–managed a first quarter gain this year of 14 percent (4,881 PPD in ’10 vs. 4,279 PPD in ’09). TV pilots and reality TV led among TV subcategories with PPD gains of 42 percent and 38 percent, respectively. However, TV dramas and sitcoms declined 17 percent and six percent, respectively.
The television pilot season performed well, with more projects shot in the region than in prior years. Of the 129 total projects FilmL.A. tracked in the ’09/’10 development cycle, 76 filmed in Los Angeles, giving the region a 59 percent share of overall TV pilot production. This share is slightly larger than what L.A. captured during the previous development cycle. L.A. landed 59 out of 103 available projects for a 57 percent stake in ’08/’09.
Google Opens Its Defense In Antitrust Case Alleging Monopoly Over Online Ad Technology
Google opened its defense against allegations that it holds an illegal monopoly on online advertising technology Friday with witness testimony saying the industry is vastly more complex and competitive than portrayed by the federal government.
"The industry has been exceptionally fluid over the last 18 years," said Scott Sheffer, a vice president for global partnerships at Google, the company's first witness at its antitrust trial in federal court in Alexandria.
The Justice Department and a coalition of states contend that Google built and maintained an illegal monopoly over the technology that facilitates the buying and selling of online ads seen by consumers.
Google counters that the government's case improperly focuses on a narrow type of online ads — essentially the rectangular ones that appear on the top and on the right-hand side of a webpage. In its opening statement, Google's lawyers said the Supreme Court has warned judges against taking action when dealing with rapidly emerging technology like what Sheffer described because of the risk of error or unintended consequences.
Google says defining the market so narrowly ignores the competition it faces from social media companies, Amazon, streaming TV providers and others who offer advertisers the means to reach online consumers.
Justice Department lawyers called witnesses to testify for two weeks before resting their case Friday afternoon, detailing the ways that automated ad exchanges conduct auctions in a matter of milliseconds to determine which ads are placed in front of which consumers and how much they cost.
The department contends the auctions are finessed in subtle ways that benefit Google to the exclusion of would-be competitors and in ways that prevent... Read More