The prediction that the actors’ strike would trigger increased levels of American spot production in foreign countries seems to be coming to fruition. While that had been anticipated in industry circles, some unforeseen related developments have also arisen, including the decision by the Association of Independent Commercial Producers (AICP) to withdraw from the National Entertainment Coalition (NEC), and a contentious battle brewing between production companies and actors in Australia.
On the former score, the AICP announced last week that-in response to the strike by the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA)-it was pulling out of the NEC, a group launched in ’99 to help find solutions to the runaway production problem. Film US, a group of 196 state and local film commissions, was instrumental in the formation of the NEC.
NEC members include film commissioners from throughout the U.S., SAG, the Directors Guild of America (DGA), and such industry trade organizations as the Academy of Television Arts & Sciences, the Association of Imaging Technology and Sound, the American Film Marketing Association, and the Production Equipment Rental Association. This unprecedented coalition of labor unions, management and film commissions held a special public meeting earlier this year, during which it exchanged ideas with several legislators about the runaway issue (SHOOT, 1/28, p. 1).
"While we fully support the efforts of the alliance [the NEC] to encourage domestic film production, we believe that SAG/ AFTRA’s [strike] action will result in an even greater migration of production jobs to overseas locations," explained AICP president Matt Miller. Despite the decision to exit the NEC, Miller noted that the AICP "will continue to work with local, state and federal governments-as well as key members of the coalition-in support of initiatives for a more film-friendly environment to create jobs and economic opportunity here in the United States."
As earlier reported, SAG has staunchly opposed runaway production, teaming last year with the DGA to co-sponsor a study documenting the detrimental impact that lost filming business has on the U.S. economy. Last year, SAG hired a Washington, D.C.-based firm to lobby for possible legislative remedies to runaway production.
"Since SAG is an active member of the coalition and has expended hundreds of thousands of dollars in support of efforts to encourage domestic production, we find their latest actions [the strike and the union’s stance on residuals] highly irresponsible and somewhat hypocritical," stated Miller.
According to the AICP, in anticipation of the strike, bookings for overseas production travel increased by at least 60 percent in the past month, as compared to the same time period in ’99. The AICP arrived at this statistic by canvassing major travel agents that specialize in servicing the spot industry. Indeed, contingency plans that entail lensing in foreign locales have been sprouting up. For example, bicoastal RSA USA has entered into a relationship with a Johannesburg-headquartered production company to facilitate production in South Africa for American spot shoots during the strike. SHOOT also heard of a U.S. production house that diverted three planned stateside shoots overseas-two to the U.K., one to Spain-as a result of the strike.
Miller noted that a prime reason behind AICP originally joining the NEC "was to support the vendors, suppliers and crew members here in the United States who depend on the commercial production industry for their livelihood. As producers, we are continuing to provide services to our clients, both domestically and overseas. Unfortunately, SAG’s actions are hurting those people who can afford it least-our film crews and local businesses."
In a position paper on runaway production released last summer, the AICP addressed the topic of residuals, which has since emerged as a pivotal issue in the negotiations stalemate between the actors’ unions and the Joint Policy Committee (JPC) of the American Association of Advertising Agencies (4A’s) and the Association of National Advertisers (ANA). The AICP position letter (SHOOT, 7/23/99, p. 1) noted that as American clients have been shooting increasingly in foreign locales-for creative reasons and/or to save money in production (via favorable exchange rates and other factors)-actor talent buyouts have also been discovered as a significant source of cost savings. The AICP letter claimed that the impact of costly residual structures is serving to drive American commercial production overseas.
Based on that observation, Miller said, "the proposed contract by SAG will only increase the pressure that is placed on commercial producers to find low-cost filming alternatives."
At press time, a SAG spokesman had not gotten back to SHOOT with the union response to AICP contentions.
Dawn Keezer, chair of the aforementioned Film US, said that the NEC will continue to work to keep filming in America. "The alliance [NEC] respects the AICP decision," related Keezer, who is director of the Pittsburgh Film Office. "We understand the situation and find it unfortunate that these things are happening. We’re looking forward to the time when they [the unions and the ad industry] can resolve their differences. Ultimately, I think the AICP will be back [as an NEC member]." Keezer added that the NEC remains hopeful that federal anti-runaway legislation will come to pass by next year.
