When is a shop too big? When is a shop too small? How do you find the right balance? For this week’s series on production companies, SHOOT asked a selection of execs and company owners about what the future holds, and how a company can remain competitive in the current environment. The questions posed were: What does it take for a commercial production company to remain successful in the current market–staying boutique-sized, getting bigger or something in between? Focusing on traditional spot work or branching out into emerging ad platforms? What will production companies look like in five years?
Allison Amon
Partner
Chelsea Pictures, bicoastal/international
I think diversity and flexibility will be the key to the future. It seems like the production company model of manageable overhead with freelance expertise will continue to be desirable for directors and clients. Large or small is not important. As advertising changes so will what traditional production companies are asked to do. At Chelsea we have recently formed a new company, Campfire, to expand on the success we had with nontraditional media campaigns of Levis, Audi A3, Sharp, and Sega–“Beta 7.” Our role as creative partners will become increasingly valuable. Five years from now agencies and production companies will align themselves early in the game and work together to satisfy client needs. Staying true the goal of producing great creative will always result in success
Carol Case
Partner/managing director
Playroom, bicoastal
Good question…not an easy one to answer. Basically, I think all of this begs additional questions: “What is the advertising industry going to look like in five years?” “Will there be :30 spots?” “What will the focus be for the industry at large?” We, as company owners, have been looking at a significant revenue loss over the past seven years and a total revamping of an industry over the past 10. The production companies will be production/content/viral-guerilla marketing/editorial/ and–of course–global companies. TV shows will revert to the ’50s in terms of sponsorship, and movies will be financed by clients–it’s happening already, so it’s not really a prediction but rather a growing trend. Like the agencies of yesteryear, production companies will be emerging forces. Let’s hope China doesn’t call in their debt and that the U.S. is still a powerful force in the world.
Andrew Denyer
Executive producer
Big Lawn Films, Los Angeles
There’s no magic formula for the perfect size of a production company. I like the fact that the spot industry is made up of small shops like ours, as well as efficient mid-size companies, and the big heavyweights–somebody has to pay for the spec spots. As for what a production company will look like in five years, I would guess not too different, although all the directors we represent will have various creative venues they are playing in. Whatever directors do–short or long format films, Web only, documentary, iPod-type films or TV shows–the job of production company executives is to grow with and ahead of them. If not, the directors will seek out “non advertising producers.” I like to think that we’ll see increased collaboration on this type of work among agency creatives, directors and production companies. There’s a great deal of talent at all levels of our commercial community, and I see no reason why we couldn’t specialize in commercials, while contributing our relative expertise to other film-related projects. This collective talent needs to be let loose, and the opportunities to do so are increasing.
Tod Feaster
Executive producer
Japanese Monster
Hands down, Japanese Monster’s success in today’s market has occurred primarily by maintaining relationships with a “core” group of agencies. These relationships allow us to grow, while being able to pursue new business to add to that “core.” To maintain these relationships, our philosophy of catering directly to the agency and delivering work that meets or exceeds expectations, is our recipe to keeping the doors open.
As for the size of the company and the philosophy we implement, finding the right person(s) that fit the chemistry of our company is pivotal. The more directors and board flow, the more exciting and challenging the job. Growth will also allow us to expand past the traditional spot work and into whatever media platform agencies/clients want to throw at us.
Looking into my crystal ball, in five years, as long as agencies still deliver entertaining content, and directors with creative vision still execute that content, there will always be a place for strong production companies. The bottom line, if the work delivered is the best work possible, then the company will thrive no matter what the platform.
Bob Giraldi
Director
Giraldi, bicoastal
Obviously, what works for a 35-year-old, one-director shop like mine will not work for conglomerates offering hundreds of directors internationally in a variety of platforms, but you’d be surprised how many common elements there really are at keeping successful: lessons learned, awards constantly within reach, resources available, relationships formed, respected production and support staff available, fewer bridges burned as the years increase, a community well-served. It is, after all, a service business albeit a creative one, that spends the majority of its time tending to a fickle, yet amazingly loyal, community. The ones that do it best seem to be the ones that stick around.
Something I’ve consciously tried to do over the years, that has probably kept me around longer than I deserve, is not to specialize in any one form of filmmaking–particularly in a business that’s constantly demanding the comfort of specialization. I’ve always felt that, no matter how advanced the technology or how wide the boundaries expand, the business of broadcast advertising will always have a need for stories to be told. Where there are stories there are actors, and consequently, directors to make those stories as interesting and timely as possible. Luckily for me, it’s the one thing I can always seem to count on.
I’m not sure what a production company will look like in the years ahead. Hopefully, we’ve begun to experience the last of the over-stuffed, over-staffed and over-evaluated production facilities, and can look forward to a less formal forum where even the exchange of the largest ideas will feel comfortable in the most intimate of settings.
Unfortunately, right now work is ongoing in Great Britain to find the perfect digitally formed actors and actresses for commercials, so, in the next five years, we may finally have no more use for live talent.
Bruce Mellon
Executive producer
Original Film, Los Angeles
We believe boutique because a smaller more intimate size favors the growth and development of our directors. We focus on relationships with our directors that cultivate their creative expertise within an ever-expanding market. As a boutique, we are able to concentrate with our top tier talent on artistic work and can quickly change creative directions without feeling the constant pressures from a large overhead, which might force us to take mediocre work out of necessity.
We will continue to concentrate on our core client business, which are television commercials. Original Film has already produced several feature films and has branched out into areas like branded entertainment. We will continue to be responsive to new platforms and innovative delivery systems as they present themselves in the market place, always maintaining that the quality is in the execution and great creative will always find its audience.
The model of production has not changed immensely in the last 40 years. However, with the constant advances in new technologies we are able to respond more quickly and efficiently to our clients needs as the global market evolves.
Amyliz Pera
Executive producer
Twist, Minneapolis
Low overhead, with a roster of a diverse level of directorial talent are still solid ingredients for keeping business steady. Certainly, success is relative to scale and plan. We’re electing to expand our company and continue to support a branded entertainment division. The demands have driven our direction. With the current fearful climate at many large agencies, it becomes perceivably less risky for them to offer their usual vendor list or bandwagon and use people currently under the spotlight. If a company and directors are interested in those jobs, public relations and relationships become important–more easily cultivated with a sizable roster and someone available to work. Smaller agencies can afford to take risks and are more malleable–and the cycle continues. They’ve been very aggressive with alternative advertising. To sell clients on alternative ad forms after media money has been allocated can mean finding development dollars within a budget or partnering with interested vendors.
In five years, more hybrids will exist to handle creative and production–but traditional models, in which both collaborate and bring their niche, will survive the longer haul. We’re embracing development and creative partnership [which means investing in earlier involvement and more back-end time]–but our focus remains on production.
Lauren Schwartz
Owner/executive producer
kaboom productions, San Francisco
There is no doubt the current market is challenging with so many directors and production companies in the mix. Traditional media budgets are shrinking. Different forms of advertising and marketing are emerging. But I have always believed and continue to believe that this is a business of relationships and trust. If clients trust you to do their spots, then they will trust you in whatever challenges and opportunities come their way.
As a conscious choice, we have chosen to create a roster of highly talented directors who are great at doing commercials, but are also adept in a diversity of areas (photography, editing, shooting, etc.). This is ultimately what makes them such good directors. They are amazing at producing the work they are “known” for, but can also direct other genres. So inherently within our talent pool, we have the tools to stay current no matter which way the business decides to go.
In terms of size, I am committed to maintaining a relatively small shop. We have five directors, which allows us to make sure that our clients are well taken care of and that they don’t feel that they are in a big machine. This structure also allows for our directors to get the attention they need. And more than anything else it enables us to develop and maintain the strong relationships that are so critical to success in this business. Whether or not that makes us more successful than other companies I cannot say. I just know that this philosophy works for us.
Chuck Sloan
Partner
Plum Productions, Santa Monica
If I were 25 years old, willing to work 24/7, and had a rich angel, I would rent a very large warehouse in a low rent district, outfit it with one hundred desks and telephones purchased cheap from one of the ad agencies that went belly up due to the financial climate we are all currently suffering. I would then hire one hundred young, smart producer types at minimum wage with a profit incentive attached directly to the ten directors each of them represented. With one thousand directors we should be able to last a few years before filling bankruptcy and walking away from a six to eight million-dollar debt. Of course there is a slight possibility that clients will wake up and redevelop a trust-based relationship with their ad agencies, which to some degree would help stabilize our fractured industry.
Considering I am not 25 years old and only willing to commit to working 20/6, Plum will continue to operate with the same business philosophy my partner Eric Saarinen and I founded the company on 23 years ago. Keep a low overhead. Dedicate 100 percent to the creative process–and equally important have fun.
Good Night & Good Luck.
David Tate
Owner/executive producer
Tate USA, Santa Monica
It takes an eye for directors that can get under the skin of a project and find exciting, passionate ways to communicate the client’s message. With regard to size, I’ve seen successes in all models. I prefer a boutique, because I take the hands-on approach with the careers of my directors. It keeps me passionate about their work rather than the business, and if the work is good the business will be also. Directors are special, with a huge responsibility, and I like to consider them partners and friends. Branching out is certainly important, because of the changing landscape of media. We need to brilliantly communicate and financially accommodate everything from :05 seconds to five minutes. And in five years, who knows? But right now, the business is more exciting than it’s been in decades.
