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A couple of days ago on The Spinoff, South Pacific Pictures Managing Director Andrew Szusterman decried the loss of drama Head High from Discovery Three. Lead director and co-lead writer on the show is a DEGANZ member, Tim Worrall.

Szusterman pointed out the difficulty and cost of getting NZ drama funded and made. He said that without NZ On Air, there would be little drama produced at all because it provides the majority of the funding for such projects.

He went on to call for the Government to say, “It’s time” to streamers, such as Netflix, Amazon and the others, and to put money into New Zealand programme production. Szusterman quite rightly stated that New Zealand’s market is not big enough to warrant streamers voluntarily investing significantly in New Zealand content.

“None of these services have commissioned any New Zealand premium drama content directly for New Zealand audiences, and there is not a chance that they will unless change is forced upon them.”

I’m glad that Szusterman is adding his voice to SPADA’s recent activity in this space. SPADA has finally given up on saying, “We can’t levy the streamers because of GATT*”. I’ve been calling for levies on streamers in this column for years: Show Me the Money, Time for a Reset, An Answer to NZ’s Broadcasting Industry Dilemma? I point this out not because I want to say “I told you so.”, but to highlight that we have been mired in a time warp for too long while the Golden Age of TV drama sails on by.

I’m aware that there are a number of NZ producers who are pushing hard to crack the international door open for ‘high-end’ TV drama. But you need the budgets to do it. And you need the policies to make it easier. At the moment both are a barrier.

Good drama requires a lot of development funding. So does the production. When many of the shows appearing on the streamers are being made from an absolute low of US$2 million per episode to the stratospheric heights of The Crown or Ozark at US$13 – 14 million per episode, an NZ show at US$ 0.7 – 1.2 mil. per episode doesn’t cut it. As long as the Government keeps NZ On Air and NZFC funding at the levels it has for the last 10 years or so, we have to find money elsewhere to supplement the budgets. This is outlined in the Screen Sector Strategy 2030.

So where to get it from and what needs to change? It’s time to levy the streamers. They’re an obvious source. Even though our market isn’t big, it still provides incremental income for them, and they should pay to get it.

We also need to remove the block to going behind a paywall for NZ On Air funding, as is currently the case. And we need to allow, as I’ve said before, Drama and Factual to access both the New Zealand Screen Production Grant and NZ On Air funds, which is only allowed now for Children’s and Animation. The Premium Production Fund has been given a temporary reprieve concerning this. It’s time to make this permanent, and the Premium Fund, too. If we had to, we could accept a 30% NZSPG for behind paywalls instead of the 40% available now for free-to-air.

In the meantime, we wish Szusterman luck in finding a new home for Head High. It has a place on NZ screens.

 

The Spinoff article here.

*General Agreement on Tariffs and Trade

 

Tui Ruwhiu
Executive Director

 

 

 

 

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With the vaccine within sight and just when we thought all we had to worry about was who was going to win the America’s Cup… here we go again.

It’s only through the news, our friends and other sources do we comprehend the horror of what COVID has perpetrated on many parts of the world. Our experience has been minor in comparison. The low numbers of check-ins using the COVID app has highlighted the nonchalance with which many Kiwis have treated the threat. And now here it is amongst us once more.

Fortunately, many productions schooled through our last lockdowns have maintained their vigilance and practices. A visit to Amazon’s Lord of the Rings studio locations highlighted that. Screensafe’s and SIGANZ’s considerable effort, with all the guilds and associations pitching in, means we have the resources and now the experience to provide the safest environment possible for production amidst a pandemic. Let’s hope we don’t have to rely on these for too long.

The fund NZFC and NZ On Air operates for COVID-hit productions has already been used by a large number of projects. How much money is still available has suddenly become a pressing issue. As will the availability of more if we are faced with a longer time in lockdown.

We got away almost unscathed from the Pullman outbreak. This looks much more serious with the UK variant of the virus confirmed in the community cases.

In the meantime, DEGNZ will continue to operate as we did through Levels 2, 3, and 4. We are all working from home, so office hours are essentially the same as usual. Once more we have to adjust our events to cope with the situation. We will be communicating with you about any workshop or event that was already on our calendar and that may be affected.

As always, the guild will be available to our director and editor members with advice or assistance, so do not hesitate to reach out. Hopefully, we will not have to take on a bigger picture role because of a prolonged lockdown period—having done a lot of work already, the screen sector is in a lot better shape than it was the first time around.

As I sit in front of my computer at home listening to the rain falling on a vege garden and property that welcomes it with open arms, and another sunny weekend just gone, I sincerely wish that all is over by midnight Wednesday. I will then be able to look forward to the coming weekend, which will hopefully deliver good surf so that I can try out my new surfboard lying untested in its bag in the carport.

 

Tui Ruwhiu
Executive Director

 

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It’s hard not to bang on about streaming services when they are continuing to upend the screen industry as we know it.

Media intelligence service FilmTake recently reported that Disney, WarnerMedia, and Apple are expected to spend between US$8 million to $20 million per episode on new drama series.

Amazon has supposedly set aside over a billion US dollars to bring a five-season Lord of the Rings series to Amazon Prime.

There are other epics planning to cash-in on the void left after the conclusion of Game of Thrones include WarnerMedia’s Dune series, Showtime’s Halo, and Apple’s fantasy series See.

Disney+ is also producing a Star Wars series, Mandalorian, which is costing $15 million per episode.

And these are just the TV blockbusters.

The Financial Times reported that in Europe, Netflix will make 221 projects in 2019, including 153 originals.

Netflix has launched its first European production hub in Madrid, targeting Spanish-language production and drama series, which have been a priority and a large source of success for the U.S. streaming giant.

In July of this year, it also announced that it is creating a dedicated production hub, featuring 14 sound stages, workshops and office space, at Shepperton Studios in the United Kingdom.

In the last year alone, over 25,000 cast, crew and extras have worked on almost 40 Netflix originals and co-productions across Britain.

New Zealand is certainly not missing out on service production for streamers as witnessed most recently by the noise about the Lord of The Rings TV Series potentially being shot here for Amazon. Netflix has already been here with Letter For the King and is currently shooting another.

But are we missing the boat with local IP to satisfy the booming global appetite for content, particularly drama?

Yes, local producers do continue to sell their NZ ON Air and TMP funded content internationally, but that’s been the case for many years now.

NZ formats for the international market have made headway, as most recently attested to by Filthy Productions’ sale of Filthy Rich to the Fox Network.

It’s easy to forget that Rob Tapert has been making TV shows here for the international market for over 25 years—everything from Hercules and Xena to Spartacus and Ash vs Evil Dead.

But there’s nothing new in all this, as it was happening prior to the advent of Subscription Video On Demand (SVOD) services like Netflix and Amazon.

While NZ On Air continues to do the best it can with limited funds for local drama, it’s essentially locked into a myopic approach by its adherence to the Broadcasting Act, and it doesn’t look like it will change that anytime soon.

But there is a little light at the end of the tunnel.

Screentime has forged into Scandi Noir with its Danish coproduction Straight Forward, now on TVNZ OnDemand, and its soon to be released copro The Gulf, with Paula Boock and Donna Malane’s Lippy Pictures and a German partner.

And we have seen one Netflix Original in Auckland-based Razor Films’ Dark Tourist, while See-Saw Films and Jump TV are into their second series of The New Legends of Monkey for the ABC, TVNZ and Netflix. Almost going unnoticed is Pango Production’s 2018 production All Or Nothing: New Zealand All Blacks for Amazon Prime.

But really! Can we survive the onslaught of service production work from streamers in New Zealand and get our own IP out there in more than an occasional way?

There are a number of factors holding us back and one of them is writers. We don’t have enough skilled writers with the experience required to get internationally-focused shows across the line. The NZFC/NZ On Air Raupapa Whakaari Series Drama Lab initiative is seeking to address this by bringing in international-calibre mentors to work on local show ideas with teams here. Hopefully this will bear fruit.

Another is lack of funding. NZ On Air production funding caps out at $6 million, and you can’t access the NZ Screen Production Grant and NZ On Air Funding for the same project. When even middle-of-the-road Aussie shows are being made for the international market at AUD $1.5 to 2 million or more per episode for 6 to 10 eps, you can see the problem. But before you get to production you have to go through development, and the cost for that is going to be anywhere between $300,000 to $500,000. Again, there’s not the funding here for that. Raupapa Whakaari’s matched funding is limited to NZ$50,000 per year.

You might well ask why do we need to create our own IP anyway, and not just be service providers for international productions?

For directors and editors there’s going to be more work on local shows than international ones. The post production is generally not done here for international shows, and there’s only a very small pool of Kiwi directors with the credits to get themselves hired on international productions. That will expand slowly over time, but local shows hire locals, and we are increasing the numbers of Kiwi directors working on NZ On Air dramas.

In the end though, it’s our distinctiveness as Kiwis with Kiwi stories to tell and landscapes to show that provides cut through in the international market. I’m paraphrasing Paula Boock of Lippy Pictures who participated on our Screenlink panel this week along with Mark McNeill of Razor Films and Steven Zanoski of Filthy Productions to discuss ‘Screen Content for the Global Market’. Locally owned IP also brings revenues back to New Zealand when it’s successful, long after production has finished.

I don’t think we are going to miss the boat entirely when it comes to creating our own shows for the streaming giants. But it does sometimes seem like we are standing at the end of the pier watching the ship sailing away and wondering how the hell we are going to get onboard.

Tui Ruwhiu
Executive Director

 

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Every year, tens of thousands of film industry people gather in Cannes for the world’s pre-eminent display of film industry gauche and sublime—the Cannes International Film Festival.

Or at least that’s what used to happen.

According to one local property manager, apartment rentals are down 30 – 50% for 2019’s festival, and it’s becoming a trend.

Esteemed trade publication The Hollywood Reporter headlined the affliction of both the festival and the film industry in general when it titled an article on Cannes: ‘It’s Time to Roll Out the Red Carpet, But Does Anyone Care?’

Jury President Alejandro González Iñárritu essentially pointed the finger at the culprit—Netflix—pushing the festival line that you can watch movies on phones, iPads or laptops, but that’s not the theatrical experience that film is created for. And with Netflix not eligible for Cannes film selections, it highlights the widening gap between the old world of theatrical, particularly in France, and the new of streaming.

So, is Cannes surviving the onslaught of SVODs?

The general consensus is that the film industry has contracted. The mega mergers that have taken place attest to this with the number of major studios reduced to five when Disney gobbled up Fox.

The mini majors are reeling from bankruptcies, flops and lack of franchises. And the indie film world (non-studio) is struggling unless they have cast.

Cannes is quiet this year. The stars aren’t turning out and there are fewer big budget films. And supposedly the parties don’t go to 4AM anymore.

One highly experienced French producer said the independent film business is either going to get better or worse, which shows the lack of uncertainty still pervading the industry and obvious at Cannes. His hope for theatrical lies in filmmakers tiring of their films going into the black hole of SVOD digital archives, without the attending fanfare of marketing and promotion given to films headed for theatres where they are experienced as they are meant to be.

Sales agents are becoming production companies and financiers to survive in the same way that distributors have reacted to the changing conditions.

And it’s a common topic to talk about films going straight to SVOD, because it’s so difficult to get a theatrical release. In the old days, straight to DVD usually meant it was a bad film. Not the case now with its modern equivalent.

Netflix and Disney are supposedly not showing here this year, but there are definitely people from both companies on the ground. As undoubtedly are other players like Amazon and Apple.

China has a stronger presence than ever before, tempered by a shift in political climate back home, burnt fingers from past bad decisions, and a more discerning Chinese screen industry and domestic audiences. It’s not quite the saviour it’s been seen as in past years.

Cannes has been slammed for the lack of female directing talent walking the red carpet and screening their films here. The stats for 2019 aren’t great but they are up over previous years, with 26 per cent of features submitted from women, and four of the nineteen in official competition helmed by female directors. Festival head Thierry Fremaux has been touting the mostly gender balanced selection and jury panels, and the introduction of a creche for film festival attendees with kids has been a definite hit.

Cannes is changing, but it resembles an ocean-going liner trying to make a turn—it has to cover a lot of distance before it can come about.

Will it maintain its preeminent position as the biggest film festival and market in the world? Probably. But what does that really mean now with SVODs here to stay and audiences increasingly glued to their small screens. We shall see.

Tui Ruwhiu
Executive Director