For this week’s look at New York, SHOOT asked production and post execs from shops around the Big Apple for insights into how the market is shaping up. The questions: As the New Year kicks off, how would you describe the business climate? What are some creative trends you are seeing? How do you think production and post in New York will fare in 2006? Below are the answers:
Robert Fernandez
President
Moxie Pictures, bicoastal/internationalThe business climate has been pretty steady for us. There are always the normal ebbs and flows, but there seems to be enough good work out there. There are so many outstanding directors and production companies out there, the market is incredibly competitive. So many things seem to be event-related lately (Winter Olympics, Super Bowl, Oscars, Grammy’s, etc.), so it will be interesting to see how things are in March. The good news is we are seeing more and more work with good creative, but the budgets aren’t where they used to be and I don’t expect that to change. It just means we need to be more efficient with how we approach our productions and manage the process.
I am always optimistic about production in New York. I have a lot of directors based here, so we try and do as much work as possible in New York. It is still one of the best places in the world to shoot.
Connie Griffin
Managing Director
R!OT, New YorkAfter a somewhat slow start, production volume has picked up considerably and the months ahead look strong. We are encouraged by both the volume and the quality of the work we are seeing.
The most significant trend we see is the need to offer creatives flexibility both in artistic options and in workflow. We are seeing an increasing number of projects that involve bicoastal collaboration and we feel it is essential to have a business model that supports that. Clients want to have the freedom to work wherever, whenever and with whomever they want–and we want to help them do so.
New York will always be a highly competitive market, but we believe that production volume will remain strong enough for good companies with exceptional talent and strong resources to prosper.
Marshall Grupp
Co-founder
Sound Lounge, New YorkThe industry in New York, as in the rest of the country, is in a state of flux and it is anyone’s guess as to what the future holds. Will the 30-second spot continue to dominate or will other forms of advertising take its place? Our philosophy is to be ready for anything, and to be prepared to meet our clients’ needs for audio post services in whatever form they need them.
Clients are becoming increasingly interested in taking advantage of new technology and we have accommodated them by staying ahead of the curve. Most of our mixing studios are set up for 5.1. We’ve also added D5 capability. As cinema advertising is becoming increasingly important, we’ve got one room that is Dolby-certified and we are in the process of building a second Dolby-certified room. One thing that we don’t expect to change is the desire by agency creatives to work with the best, so we are committed to recruiting and retaining the best talent.
The New York market is as strong as it has ever been–because it is so dynamic. New opportunities are always arising. We have tried to take advantage of that by seeking new opportunities to apply our resources and skills. We have expanded our radio production operations and have recently moved into mixing for television and features. We are especially proud of the work we have recently done in independent film.
Dominic Pandolfino
Principal
Nice Shoes, New York
2005 was a great year for Nice Shoes and sister companies Guava and Freestyle Collective, and the industry as a whole. It was in my opinion, our best year ever. The climate in 2006 has been excellent so far, and we’re hopeful and optimistic about keeping the momentum going. It seems that there is an increasing awareness of the power of commercials and that TiVo is no longer something that advertisers need to fear. Additionally, there is a renewed vigor for spots with regard to new technologies, including video iPods, telephones as well as Web casting and ways to experience those applications.
Part of the industry’s success has to do not only with the addition of new talent but also with our collective ability to upgrade to new technologies and deliver the best solutions. For example, Nice Shoes recently upgraded our telecine department with three new 2K Spirits, and we purchased our third Specter, which has been wildly successful in New York and at Nice Shoes.
In 2005, the industry really started to take HD into consideration and began embracing the format. One of the biggest trends we have seen in the past year at Nice Shoes, Guava, and the industry as a whole, has been a tidal surge, more than quadrupling, in the amount of high def work coming through our doors. Three to four years ago, Nice Shoes and Guava became completely HD capable. In the latter part of this year we expect the industry to be doing a majority of their work in HD as more and more television networks continue to migrate to HD.
The 3-D trend beginning in the ’80s has grown such that 3-D is integral to the creative in commercials. We feel that the growth in effects is due to the viewing public becoming much more sophisticated than in the past, resulting from the increase in effects-driven movies. People are expecting to see these quality effects mirrored in TV campaigns, consequently helping drive the postproduction community. Underscoring this trend is the fact that our new 3-D department at Guava is much busier than we had imagined, and our whole operation has tightened up because we previously did not have that 3-D capability.
As technologies change and merge, like with cell phones and mp3 players, we have to make sure that we stay ahead of the game by having the best technology and talent.
Amyliz Pera
Executive producer
Twist [East], New York
The first quarter has been very busy so far. The year does not always kick off with this kind of gusto, and no complaints from us. One of the more recent trends is the increased involvement clients are having with the creative. With larger internal departments and changing needs [especially in areas of Web advertising and content], clients are collaborators at a different stage of the game. Another area we’ve been struggling with is the lack of comfort level many of our clients have with HD 24p. We have numerous ways [including examples] in which we try to increase the awareness of this format’s qualities–and in cases where it’s quite appropriate, we’ve still been met with resistance. We’ve just announced the opening of our New York office–which we’ve been building over the last year–complete with new director signings, new staff, and promotions. We’re banking on 2006 being a great year, and to prove it–we just ordered a new rolling kitchen cart.
Michael Porte
General manager
audioEngine, New YorkI’ll start the answer to the state of the business climate by saying that we were busier in 2005 than in 2004–that’s the good news–more jobs, more work. We did not, however, see a commensurate increase in billing in 2005. Why? Because there is less money to spend. Clients are trying to do more with less. In the audio post business, that means mixing a :30, :15, and a :10, and an Internet version of a spot in the same time as we used to do one spot. So we’re doing more work and making the same past money. That’s not all bad news. However, when you add the increased cost of doing business–increased health insurance costs, increased labor costs, etc.–the bottom line looks less promising. That said, working across various platforms, including Internet and theatrical is exciting–new markets are opening up and this is very promising.
There is a trend in 2006 to move toward HD production and post. I think this is unsettling to our clients. They all are excited about the look of high definition, but they are wary of the costs. When the trend is to do more for less, what will the model look like when they have to fork over an increased price for high definition? And do they even want it? Yes, the government is forcing our hand with the switch to digital–but that doesn’t mean high-def. I’ve received more requests for Internet and iPod output than I have true high-def. (And rarely are we asked to show off our 5.1 capabilities for broadcast.)
Ultimately, I think the outlook for production and post in N.Y. is good. In fact, very good. But there are many issues that we will face this year. Do we raise rates? Do we move to high-def? All good questions that every production and postproduction company will be contemplating this year.
Nancy Shames
Executive producer
Crew Cuts, New YorkThings seem to be picking up this year. The 30-second spot is certainly far from dead; people are just finding other means by which to view them. 2006 is the year for viral, mobile and streaming content. Marketers are speaking to a new type of consumer–one that is linked in, hooked up and fully aware of the different types of media out there.
At Crew Cuts we have taken this shift very seriously, working to ensure that the quality of a viral piece is as high as it would be if shot for TV. We have started to explore the world of interactive and downloadable content and believe this trend will only continue to expand as marketers realize its unbelievable potential. From a creative perspective, our editors are enjoying more freedom in terms of length with this type of content–and that opens many doors for new types of talent and creativity.
Rick Wagonheim
Partner/managing director
rhinofx, New YorkPresently,’06 appears less promising than first predicted at the end of ’05. Business exploded last year with numerous opportunities to choose projects. Whether it’s economic uncertainty, or the siphoning of traditional ad dollars to “new media,” at the moment, there appears to be less client commitment.
This creates board flu, not board flow. This extended flu finally caused the liars in the business to come out of the closet admitting “it’s slow,” a topic rarely discussed due that perception, reality thing.
Our industry is a transactional business that is difficult to predict. We witness moments and feel secure or insecure accordingly. At this moment insecurity seems more prevalent as there have been agency layoffs that are not the result of client departures. Management is concerned about their margins.
As we complain, whine or feel anxious, realize our business is far better then the dry cleaning industry. We do not suffer from zipper burns and the chemicals are far more toxic, not nearly as much fun as the chemicals in advertising. And the car wash business is far slower in the winter then our present board flu.
So, no complaints as we like what we do, even when it sucks the life out of us. The one certainty in ’06 is exhaustion and fatigue.
