Year In Perspective: Reflections on 2006

This past year will be looked back on for what didn’t happen as well as what did. On the former score, despite much trepidation going into 2006, there was no actors’ strike against the advertising industry. Instead the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA) reached an agreement with the Joint Policy Committee (JPC) of the Association of National Advertisers (ANA) and the American Association of Advertising Agencies (AAAA) on a two-year extension to the commercials contract covering ads on TV, radio, the Internet and new media.
    The new pact took effect on Oct. 30 and will run through Oct. 29, 2008.
    The two-year extension was designed in large part to give ample time for a joint study that will analyze alternate compensation models in the rapidly changing ad business in light of new nontraditional outlets and different forms of content. At press time, the industry at large was still awaiting word as to what expert consultant will be hired to helm the pivotal study. The results of the pending study will form the basis for renegotiating the next commercials contract in ’08.
    Indeed new content from marketers emerged throughout 2006. For client OfficeMax, DDB Chicago created Schooled, a TV special on the ABC Family Channel timed to the back-to-school rush. BBDO New York created an inventive Snickers’ online show Instant Def, directed by Jesse Dylan of Los Angeles-based Form. The tongue-in-cheek Web reality series Brawny Academy from Fallon, Minneapolis, created considerable buzz for Brawny paper towels, bringing a human touch to the advertiser’s iconic Brawny Man character.
    And the branded content beat goes on. Anheuser-Busch announced its plans to launch an online entertainment network, Bud.TV, scheduled to go live on Feb. 5, the day after the Super Bowl. And word is that Burger King has a feature-length film property that may star its bizarre “King” character of ad campaign fame. And there’s news in this week’s SHOOT of BBDO New York’s “Imagination Theater” for client GE; the series of short films is debuting on VOD and will later be accessible on GE’s revamped Web site.
    Furthermore media deals in ’06 (i.e., Google’s purchase of YouTube, News Corp.’s acquisition of MySpace) are being watched by and carry potential implications for the ad biz at large.
    Also continuing to emerge in ’06 were financial and tax credit incentives designed to spur on commercialmaking in various states and jurisdictions throughout the country. The marquee development came in New York State with the passage of a three-pronged incentives package created specifically for spot production and slated to take effect on Jan. 1, ’07.
    The production and post workflow has undergone a significant amount of scrutiny this year, as digital tools have ushered in new and evolving production methods. In cinematography, new digital cameras generated a huge amount of attention–from education to experimentation to actual use. “Tapeless” was also a watched area, with the possibilities of recording to digital disk recorders generating attention; these systems contributed to a general blurring of the lines between production and post.
    On set color correction became a critical topic in the production community, while color correction was also one of the hottest topics in post. As ’07 approaches, it is clear that maturing hybrid film and digital workflows will remain a key industry focus. Meanwhile consumer awareness and the amount of available HD content continues to grow in the U.S.
    Yet with all the profound change, some things remain the same. The slow payment problem continued to jeopardize the financial health of production houses and other suppliers that are asked to bankroll large projects while waiting extended periods for payment from clients and/or agencies. If anything, the problem seems to be worsening, creating major cash flow problems for companies. In fact, chronic late payments by advertisers and agencies had a hand in AICP’s decision to revise its National Guidelines (see separate news story in this issue).
    On the next few pages, a cross-section of industry folk informally surveyed by SHOOT offer their various takes on ’06, spanning major trends, developments and lessons learned.

	Laurie Malaga, head of production, la comunidad, Miami An industry lesson that’s always a perennial favorite is to keep an eye out for fresh talent. Coming from the music video production world to the commercial world, I totally get that budgets will always be a challenge, never more so than today, as the media landscape fragments, and consumers have so many more options. Producers at all types of agencies — from boutique-sized to multinational conglomerates — should constantly be looking for young talent in a director search for a project. Not only is it great to say you “knew them when,” but it can lead to very fruitful collaborations in the future. We recently reconnected with director Aaron Ruell on a campaign for MUN2, but the first time we worked with him was for Virgin Mobile a year ago, when he only had two spots on his reel, and we gave him a shot.
	Steve Bassett, senior VP/creative director, The Martin Agency, Richmond, Va. Significant trends or developments in 2006: 1) The accelerated democratization of media/content–what defines it; who delivers it; when and where we consume it. It’s futile to cite examples. By the time this is printed, posted, or blogged, specific examples will be yesterday’s news. Instead, take a look at the multi-media device in your pocket, on your lap, or hanging on your wall and consider the content, ideas, and options available today that weren’t even in the vernacular a scant 12 months ago. 2) The devaluation of ideas. Thanks to the democratization of content, there are a million new ideas floating out there in the ether every day. We’re in the idea business, so there’s definitely an upside to opening lots of minds to lots of new possibilities. But a million of anything–available for the taking, repurposing, or even subverting–is more likely to be devalued. Or at the very least, more easily dismissed.
	Johnnie Semerad, founder/creative director, Quiet Man, New York As technology continually changes, it becomes less and less expensive to produce a commercial, music video or movie. The phenomenal growth of 3D over the past few years has led to greater reliance on visual effects companies to repair or completely recreate in CG certain shots that were unable to be captured properly on camera. Opportunities in cross-platform marketing (from cell phones to Web sites and the small screen to the silver screen) are leading to more and more people coming into the market from different directions. Branded content also made a big splash this year, and I think companies will take this route as viewers are already savvy about marketing tactics. Those who can accommodate the opportunities will do well.
	Jeff Goodby, co-chairman, Goodby, Silverstein & Partners, San Francisco The beginning of the end for segregated interactive departments. The beginning of the beginning for companies where everybody does everything. Important industry lesson: Stories and engagement are once again pushing out repetition and gimmicks. Deep is good. It’s an exaggeration to say the whole industry has learned this, though.
	Brian Latt and Jennifer Siegel, executive producers, bicoastal Tool of North America The amount of integrated media work we are doing has seen a big increase in 2006. Both established and new talent on our roster directed a variety of virals and Web films. From Geordie Stephens, having completed a Webisode package for Comcast within his first few months at Tool, to Erich Joiner, directing some interesting Ford virals. We saw a range of creative directions. We also turned down integrated media work when the creative didn’t grab us. People probably went in to interactive advertising thinking that the creative would be edgier. But this depends on the client’s comfort level. If you have a client that is receptive, interactive work can be a bit edgier or more experimental, owing to its lack of time restraints and no media costs.
	Paul Babb, executive producer, Rhythm & Hues Commercial Studios, Los Angeles In 2006, Rhythm + Hues encountered two interesting trends: “The Not Produced Package Phenomenon”…We produced full-blown creative treatments and bids for agencies’ client “approved” packages only to find out later that the “clients” had killed the projects. Several times, we were verbally awarded jobs and were then left hanging as we waited for clients to sign contracts that never appeared. It occurred more than once with an assortment of agencies, so it appears ominously noteworthy. AAAA seemed to overlook this in its annual study, though it certainly impacts the cost of production. On a happier note, we welcome the second trend: branded videogames and product placement which hold tremendous potential for marketers. We’re enjoying a surge in boards for these kinds of spots as agencies come to R+H for our unique gaming and animation expertise, and our directing talent.
	Matt Placentini, managing director, VitaminM Productions, New York What was the most important industry lesson learned this past year? Our lesson: Model yourself on the needs of the times. Help clients find their edge within broader media parameters. One project requires a director and film crew, another a whole creative media team. We’re producing music-videos, and also building an online music-video community/channel. We’re entering a golden era where more will be better: more media options for advertisers to reach their audience, more opportunities for creative people to meld minds. TVs now outnumber people in one household. Factor in Ipod’s, PC’s, mobile etc– there’s room for more interesting stuff than everyone can produce. 2006 had breathtaking TV spots, while other advertising and entertainment simultaneously found myriad niche platforms. That niche revolution itself will keep causing amazing work. Creatively it’s rewarding to hit people with something they want. Commercially, everyone gains.
	Peter Corbett, president/partner, Click 3X, New York; COO/partner, Sound Lounge, New York Each year for us sees new forms of delivery–from increasing HD content, to motion billboards to animation to integrate into building design. Not a project now goes out that doesn’t have a Web-based deliverable. We’ve seen co-op ads between a network and advertisers that bypass the ad agency. We’ve seen the myriad of deliverables across all platforms that integrated marketing campaigns need. The challenge of concepting, designing and executing a piece that is HD quality one minute and YouTube the next is going to create exciting opportunities for 2007.
	Joakim Borgstrom, interactive creative director, Wieden+Kennedy, Amsterdam Significant trends or developments: Big ideas in smaller executions. Bigger budgets resulting in high quality online video productions. Low-res video viral campaigns can still survive. More use of integrated communications. Less focus on the technology. More social interactivity, including real-time and emotional interactive video experiences. Popular sites still work without the need to advertise. Important industry lesson: A viral campaign is not just putting your video on YouTube. Banner campaigns still do not work. We need to re-invent online advertising. Kansei always works (Japanese term: Identifying the sensory attributes which elicit particular subjective responses, then designing a product based on these attributes).
	Ethel Rubinstein, president/COO, Bluerock, New York The most important lesson learned is that when the remote finally crosses with the mouse, all hell is going to break loose!
	David Rolfe, production director, content, DDB Chicago One of my interests is how capably agencies and even production companies are aiming to adapt to changes in our industry… through changing from within rather than segmenting off new departments or alternate endeavors. Change is what’s needed from all content makers in our industry, and this will inevitably impact culture, and that’s a fascinating thing to watch (and participate in). Our goal at DDB is certainly to adjust within–bringing forth digital, non-traditional content, entertainment organically–but there is always a relationship between the old and the “new.” They aren’t separate, is my belief, and to use the Marxist mantra “Thesis, Antithesis… Synthesis,” that’s where we’re all headed. I encourage companies large and small to adapt to the new from top-to-bottom within their cultural and company structure.
	Kerstin Emhoff, VP Commercial Division, HSI Productions, bicoastal/international As the advertising business evolves, one of the most important lessons of 2006 for content producers is that in order to stay relevant, we can’t just sit back and wait to execute ideas that are brought to us. We must change our current business structure to become more collaborative with our partners to develop and bring ideas to fruition. Inspiration is not found through focus groups in Iowa. Today, everyone is a part of the creative process–producers, directors, creatives, clients, even my 12-year-old son!
	Alistair Thompson, managing director, The Mill, New York The advertising world is shrinking. The distinctions between different forms of moving image advertising are becoming, well, much less distinct. Where once the advertising industry was regional, it has now become global, with vast creative options and resources available to ad agencies. They can now pick and choose the best directing talent, the best editorial talent and the best post production talent from all over the globe. Increasingly, the best is often on their doorstep, especially if they happen to be based in the major centers of advertising excellence–London, New York and Los Angeles. As advertising becomes more global in character and more centralized in its execution, the agencies, production companies and the craft companies that service them are, not surprisingly, locating themselves in the key creative precincts. Outside of the major English-speaking hubs, the emerging markets of South America and Asia Pacific are clearly not far behind. Ironically, while the technology makes it possible to work across great distances, the demand for creative people to interact face-to-face has never been greater. Hence the need for everyone in production to be based where the best work is being produced! Alongside this trend, it is equally clear that the distinction between varying advertising forms is blurring as technological advances open up newer ways to reach the consumer. HD has all but eliminated the quality differentiation between television work and feature films, while, at the other end of the spectrum, the content available on the Internet is beginning to emulate the creative standards of traditional spot advertising. Whatever the medium, great ideas with brilliant execution are undoubtedly essential to engage the consumer.
	Vic Palumbo, director of broadcast, Fallon, Minneapolis Important lesson: Television is a permanent and important part of pop culture. YouTube is the latest version of HBO, the VCR, TiVo and all other forms of media invention that have been heralded as the end of TV advertising. As Mark Twain said, “the reports of my death have been greatly exaggerated”. A smart TV spot can still be the anchor for a successful integrated campaign.
	Dan Levinson, director/partner, Moxie Pictures, bicoastal/international 2006 reinforced two things…. “MUST BE NIMBLE, MUST BE QUICK” When we have an idea, we must do our best to strike while the iron is hot. “ONLY HE WHO ATTEMPTS THE RIDICULOUS CAN ACHIEVE THE IMPOSSIBLE” Could we have imagined a few years ago that we would be producing client-sponsored films, shows for TV networks, and filling networks that are client sponsored—and that agency and production company would be getting along so well during the process?
	Bob Solomon, president, Ascent Media Creative Services Group, Santa Monica The most significant trend over the past year has been the continued move toward a file-based workflow. One of the benefits of this new way of working is better integration between steps in our workflows that previously were distinct and organized in a linear manner. In the past, production shot the film and passed it along to post. Today, production and post are more likely to work hand in hand in a seamless process. For visual effects intensive projects, that may include visual effects supervision on the set or the heavy use of previsualization tools. We anticipate that production elements will be used in multiple ways in campaigns optimized for different distribution platforms. Resolution-independent, file-based data can be used to create deliverables for everything from cell phones to theatrical. A file-based workflow also facilitates the efficient production of multiple deliverables. Today, advertisers are leveraging their production assets into many venues beyond television and theaters. They may want a telescoping ad for broadband or a 5-second snippet for wireless. A file-based workflow makes it easier to address those needs. One of the key challenges moving forward will be project management. While file-based post production and the proliferation of “on demand” distribution platforms have created more options–creative options, distribution options, etc.–the result is that the complexity of producing and distributing ads has increased dramatically. Increasingly, clients are gravitating towards organizations that can not only provide high level creative talent, but can also provide the project management expertise to ensure everything is produced and delivered in an efficient manner. The advances in technology are exciting but technology itself doesn’t really offer the opportunity. Understanding the implications of each of those technologies, and knowing which options will lead to the desired results, is something else. Having access to a powerful, new toolset doesn’t mean anything unless it is integrated into an appropriate workflow and the right creative talent is driving it.
	Dominic Pandolfino, managing partner, Nice Shoes, New York The most significant trend in the commercial world has been the fact that everybody is expanding out of their comfort zone into areas where they have less experience in order to offer more services to their clients and to try to garner a larger piece of a shrinking pie. Film editors now have some of the same pieces of equipment that traditional finishing houses have, while ad agencies now have Avids and Flames to rival both. Some of my contemporaries have been upset by this trend, but I think it is part of the maturing of our business. In the early years of video, it was a wide-open free-for-all. Now, savvy business decisions, great organizations, huge talent, a dedication to reinvesting in your infrastructure and excellent service will separate the good from the great.
	Dee Tagert, owner/executive producer, Jump, New York P&G, J&J, Automotive, Restaurant, Telecomm– the advertising categories remain static, but the ways to promote them, dynamic. People still spend more time watching TV than surfing the Web, but the gap is getting shorter and shorter. Capturing the hearts and minds of the consumer in an increasingly competitive media space, under increasingly compacted time frames are what have agencies buckling down. 360 degree branding/marketing campaigns have been prevalent. Case in point, TBWA/Chiat/Day’s recent Nissan campaign “7 days”; TV, print, Web site, viral. They all go hand-in-hand, yet can be completely independent of one another. The thing I love most about this campaign is that it doesn’t show one key feature of the car’s actual function; engine, gas mileage, safety–nothing–Highlighted are the Bluetooth and a place to plug in your iPod. Extremely targeted, well executed–indicative of advertising’s recent path.
	Gary Rose, partner/executive producer, bicoastal Go Film Here is what I have learned, and recognize to be significant trends in 2006: I have leaned that when you say, or even mention a markup of 30 percent… it makes you an old timer. I hear when dinosaurs roamed the earth, markups were 35 percent. I have learned that it is not abnormal, or an atrocity to bid five directors on a job. I have learned that bidding jobs is a silly process, since we all know the number ahead of time. I have learned you don’t pull on Superman’s cape. I have learned that the true confirmation that you are not getting the job, is when you see it on the air. I have learned that just because you do two conference calls, a six-page treatment, and three bid revisions in two countries, it does not mean the client wants to do the job or is even aware it went out to be bid. I have learned Cost Controllers are looking out for my best interest. I have learned that it is not uncommon to be asked to work for free by an agency and do it, because, “come on, everybody’s doing it.” I have learned that making ads, is still fun, and a much better job then most.
	Cami Taylor, president, Crossroads Films, bicoastal/int’l Those of us who have an extended history in and knowledge of advertising now find ourselves in a pivotal position. As we deal in movies, television, commercials, and the Internet, our advertising and marketing expertise gives us a definite advantage. This is a serendipitous time in the history of our business where we can put our selves in the forefront based on this unprecedented convergence of branded content and all forms of media.
	Robert Campbell, partner/executive producer, Outsider, London Significant development: YouTube and consumer-led marketing. Industry lesson: We are not as important as we think we are; the consumer, however, is.
	Bob Cagliero, executive producer, 89 Editorial, bicoastal, and president, AICE’s New York chapter 2006 continued to show an industry still in the midst of change as far as what medium advertisers chose for their message. We found ourselves continuing to cut and adapt work for the Web, cinema, pod casts and even half-hour shows or infomercials for prominent advertisers. However, solving the budgetary issues attached to these newer formats is a continued and growing challenge. The role of the editor continues to grow more important as advertisers indulge in High-Definition finishing more regularly and as special effects intertwine with offline editorial earlier in the process. High-definition demands are exceeding advertiser and agency expectations and knowledge of HD postproduction requirements and education of HD are necessary for all involved. This is an urgent mission for the A.I.C.E., as we have begun hosting symposiums on HD with advertisers, agencies and editorial companies in an effort to create a common understanding of HD postproduction. In 2007 we will need to continue to offer more comprehensive services to clients, while being more flexible, cost-effective and lean as businesses. That trend has fostered strong growth in 89’s design + visual effects division and we’ll continue to finish work internally. Editors will continue to be less “city-centric” as we have experienced as a newly bicoastal company.
	Chris Rossiter, executive VP/director of broadcast production, Leo Burnett USA, Chicago This time of year I tend to think more about next year than the one passing. However, any solid thinking about the future is at least somewhat dependent on past experience. It’s clear to me that successful work will depend more than ever before on the execution of the idea. That’s not to say that we must execute the hell out of our creative. We need to be creative as hell in our execution. As “submitted video” sources like YouTube are all the rage, clients are becoming more aware that entertaining consumers is more necessary than ever. Hopefully, that’s a license to do good work. Production VALUE is a term thrown around all to loosely in the past. Success in the future is about actually practicing it.
	Steve Orent, managing partner, Hungry Man, bicoastal/international The obvious and significant trend for us at Hungry Man has been producing Webisodes. They grew through ’05 and exploded through ’06. There is no doubt that the opportunity to push the creative in this arena has brought a typhoon of excitement into the creative air. We no longer feel boundaries, but rather the possibilities to get back to what we do best–creating, exploring and pushing the work. It’s as close as we have felt to the dot-com era since the boom faded. I want to say it’s like your first love calling you and telling you how much she’s missed you, and she can’t wait to get back with you. Extremely exciting, cautiously optimistic, scared shitless, but all laced with that feeling of spine-tingling excitement. We’re having a blast and it’s giving us the opportunity to think again! In terms of lessons learned in ’06 — you can’t have enough insurance, and you better make sure you have deep pockets to deal with all the unjust and frivolous lawsuits attacking the big production companies. 07? Bring it on! This shit is getting fun again.
	Steven Wild, president, Grace & Wild, Farmington Hills, Mich. We have seen a substantial and growing interest in alternative delivery mediums for traditional advertising assets. In the past year there have been numerous requests to repurpose or create new content for the Internet, podcasts, cell phone and digital signage delivery. Additionally, we are increasingly assisting other broadcast, private network and business television clients with developing IPTV content and delivery solutions. Although consumers are purchasing HD TV sets in record numbers, the advertising community still has not perceived the need for producing and delivering their messages in HD. We assumed production and delivery of HD content would parallel the growth in set ownership. I guess just because you build it, it doesn’t mean they will come. It’s really a shame when the quality of our hard work and our customers’ investments appear so crappy up-rezzed to large screen, high resolution sets.
	Jerry Solomon, executive producer/partner, Epoch Films, bicoastal Important industry lesson: Thirty second spots are dead but they’re how we make our money. We must produce viral ads but they don’t pay. So what did we learn in 2006? It’s all a whole lot of fun until someone loses an eye.
	Alex Weil, executive creative director, Charlex, New York A proliferation of companies offering excellent creative choices for ad agencies and their clients continued this year and is at an all-time high. Design and effects shops compete with and inspire each other, ultimately providing more entertaining and engaging work. The best of these companies combine creativity with production power to meet the ongoing and changing needs of their advertising clients. As executive creative director of an evolving design and production studio, this year has shown me that a creative approach to commercial production demands not only top level design, but also the ability to execute and realize that vision every single time. From concept to delivery, an established process ensures a smooth and reliable production and postproduction experience. It also affords every opportunity for the creative to rise to the top. To that end, Charlex president Chris Byrnes and I have brought in Richard Eng as creative director to push our boundaries while still building on a solid foundation.
	Film Commission Perspectives A look Back on the Year: Hot Locations and Other Developments
	Walea Constantinau, Film Commissioner, Honolulu Film Office and VP Marketing, AFCI Two popular location shots are Kaaawa Valley and Lani. The inclusion of commercials in tax incentives and the recognition of spot production as a vital part of a filmmaking community has been a significant development in Hawaii’s approach to supporting and building the industry. Hawaii has long been a favored place for both national and international commercial producers and has been one of the foundational building blocks in the development and growth of our local industry. We noticed a few years ago a decline in spot production largely due to cost considerations. The feedback we receive from commercial production companies and the support from Steve Caplan and Matt Miller at the AICP was extremely helpful in guiding us to draft legislation that would address the changing times. It was very gratifying to see the recognition of the importance of spot production in our community by our civic leaders reflected in our new tax incentive that became effective July 1, 2006. We are already seeing the positive effects of the new law and are looking forward to 2007 with great anticipation.
	Shelli Hall, President, Tuscon Film Office The two-lane roads running through the golden grasslands of the Sonoita/Patagonia area, located 40 minutes Southeast of Tucson, were our most popular locations of 2006. This area has a classic “Oklahoma” look, in fact,the 1950’s film Oklahoma was actually shot there. Car commercials love it because the rural roads are beautiful, and we can practically guarantee the bluest skies you’ve ever seen for at least 360 days out of the year. Chevy Trucks shot there this year as did print campaigns for Kate Spade and J.Crew. Well, this development is more about the U.S. as a whole, but I think that the fall of the U.S. dollar against foreign currency, particularly the Euro and the Canadian dollar, is making Arizona and the U.S a much more attractive place to film. An Italian Survivor-like Wild West reality show just wrapped here after several weeks of location shooting, and they left us with $8 million in economic impact. I’m counting on more reverse-runaway production in the year to come, especially from the commercial community.
	Pam Haynes, Director, West Virginia Film Office West Virginia consists of about 80 percent forest and wilderness areas, which automatically affords fantastic and diverse terrain. The most popular location searches received by the West Virginia Film Office from commercial producers are for river valleys, mountainscapes, landscapes, scenic and rugged plateaus and curvy mountain roadways. Commercial and feature print producers are beginning to take note of a unique incentive in West Virginia: River On Demand™. Available to nearly all forms of production projects, River On Demand™ is a cooperative effort between the West Virginia Film Office and the U.S. Army Corps of Engineers and is offered as a complimentary service. The incentive provides an open filming window on the Gauley River during November and allows river flow conditions – calm waters or raging whitewater – to be controlled to meet a producer’s needs. Based on this unique offering and the feedback we have already received, we are expecting a growth in commercial and feature print productions in 2007.
	Suzy Kellett, Managing Director, Washington State Film Office Commercialmakers love those mountains. We had a busy year with more Rainier work and Seattle work than in past years. Hot Spots: Olympic National Park, Hurricane Ridge, Mt. Rainier, Mt. Baker, Seattle (new library, Pioneer Square, Kerry Park, running footage), ferries,Tacoma’s New Convention Center and Museum of Glass, Modern International Style Homes. WashingtonFilmWorks, a separate new incentive program for Washington State, will launch its new 20 percent rebate program in January. Qualified feature film, television and commercial projects can received up to 20 percent of their in-state spending in a refund.If you buy,rent or hire it in Washington state it qualifies. Features need to spend a minimum of $500,000; television $300,000 and commercials $250,000 per commercial. For more information, producers can call me at the film office until it is launched.
	Aaron Syrett, Director, Utah Film Commission Producers always like the colossal emptiness of the crystal white salt flats against the big blue sky and the roads through the red rock canyons of Moab and Monument Valley. Thousand Peaks Ranch and Guardsman’s Pass in Northern Utah are both popular for summer and winter shots. Utah requires an application process and the time frame typical with most commercials prevents them from taking advantage of our Motion Picture Incentive Fund. However, they do utilize our best incentive, the local infrastructure. Production companies come here because they know they can work with a world-class crew from production management to assistance, with great shooters and equally great talent. Utah has a $1 million film incentive fund and offers a 10 percent post-performance rebate for every dollar spent in the state plus an additional 2 percent rebate if the film is shot in rural Utah. We offer sales and use tax exemption on equipment and rentals as well as transient room tax refund of 3 percent. In FY2006, Utah measured $144.5 million in economic impact from the film industry. Over the past three years, Utah’s MPIF awarded $3.3 million in film incentives and received revenues of $49.5 million for the state’s economy. Production spending increased by 32 percent and more than 5,200 jobs were created. 2006 has been the busiest shooting schedule for Utah since 1998 with a record six feature films and one television series shooting simultaneously earlier this year. On average every $1 allocated to filmmakers as part of the tax rebate returned $15 in expenditures.
	Bill Thompson, Director, Georgia Film, Music, Video Office Commercials continue to be shot all over the state with locations in Savannah, north Georgia and intown Atlanta being high on the list of desirable backdrops for spot production. Atlantic Station, a midtown retail and mixed use development has been used as a location as well as Atlanta’s Centennial Olympic Park, Piedmont Park, and the neighborhoods of Garden Hills and Virginia Highlands. More than 500 movies and TV series have been shot in Georgia over the years, including Forrest Gump, My Cousin Vinny, Kalifornia, Glory, Escape From New York, Warm Springs, Midnight in the Garden of Good and Evil and The Legend of Bagger Vance. The Georgia Entertainment Industry Investment Act, established in 2005, created a set of incentives that can save feature film and commercial production companies up to 17 percent of their budget for below the line items. Certain qualifications must be met, but it’s a very straightforward process. The incentives are realized through tax credits and point of purchase sales and use tax exemptions. Georgia’s incentive plan has caused the 2006 economic impact from feature films, TV series and commercials to more than double that of 2005.. Producers working in Georgia also enjoy a very experienced and deep crew base of several thousand professionals representing every production specialty. Georgia is the largest and most diverse state east of the Mississippi River, with mountains, forests, rivers, lakes, metropolitan cities, beaches, coastal plains, historic Savannah, quaint rural towns, farmland and countryside. Georgia has doubled for New York, several European cities, Vietnam, and almost every other state.
	Judy Schultz, Director, Sedona Film Office Productions come to Sedona for our dramatic red rock landscapes and there are several possible and popular spots for shoots. Our most significant development over the past year would be the development of our new Sedona Film Office. The Sedona Film Office was opened in July of 2005 and has been working to educate and expand our film-friendly community. From ensuring that our hotels offer discounted rates and understand the needs of production crews, helping to make our popular resorts location-friendly, smoothly facilitating the permitting process by establishing good relationships with the city and the U.S. Forest Service, encouraging private property owners to submit their locations for filming, building an online production guide of local crew and services, providing professional development to keeping communication flowing, acting as liaison to the production industry, the Sedona Film Office is here, ready and eager for the next commercial project. Although Sedona has remained a popular destination for filming, the establishment of the new film office provides a full time production professional liaison to ensure a worry-free shoot. The gearing up of the new film office also coincided with the new Arizona production incentive program that began in January of 2006. There is a 10, 15 or 20 percent transferable income tax credit on the company’s investment in eligible Arizona production costs based on the total amount of Arizona production expenditures. Certain restrictions apply, but the program also applies to commercials and still photography. There is also a sales and use tax exemption that is available throughout the year.
	Paul Sirmons, State Film Commissioner, Florida Governor’s Office of Film and Entertainment Dowtown Naples continues to be incredibly popular as a backdrop for commercial use. Ballast Point Park in Tampa is also a popular production destination. This fee-free waterfront location is run by the city parks department and features a beautiful pier. Palm Beach County’s various beaches continually make cameo appearances in commercials. Other hot spots include the wide open western communities of the county, home to thousands of acres of cane, corn, wheat amd rice fields; and Cityplace, where old-world archictecture and sidewalk cafes create an atmosphere reminiscent of a European town center. In addition, Palm Beach County encompasses the Grassy Waters Preserve, an everglades-like location; manicured polo fields and horse ranches; Lion County Safari, a drive-through cagesless zoo; and Morikami Museum and Japanese Gardens, featruring more than 200 acres of pine forests, rock formations and waterfalls. With its year-round warm weather, strong infrastructure and diverse locations, it’s no wonder Florida has always had an active commercial production industry. Currently in the works is a Financial Incentive specifically crafted for commercial productions that choose to frequently shoot in Florida. If approved, a production company will receive a 15 percent tax credit rebate on production costs incurred in the state if it spends a minimum of $75,000 per commercial and reaches at least $500,000 in total Florida expenditures by combining its commercials. If implemented, applications will be accepted beginningJuly 1, 2007. Call our office toll-free at (877) FLA-FILM, or visit us online at www.filminflorida.com for more details.
	Jeff Peel, Director, Mayor’s Office of Film & Entertainment, Miami-Dade County Crandon beach is always the most popular location here. The most significant trend in 2006 for Miami has been the continued growth of the Hispanic market for advertising. Spanish language advertising, both for Latin America and for the US Hispanic market, makes up more than 50 percent of all advertising production and post production in South Florida.