<<

THE PRODUCTION OF TV COMMERCIALS AND STILLS PHOTOGRAPHY IN CAPE TOWN An overview of the impacts and constraints of the commercial production sector on the Cape Town economy.

Martin Cuff, August 4th 2011

Commercial Producers Association SAASP P O Box 413005 PO Box 51649 Craighall Waterfront 2024 8002

Tel: 27 11 673 6809 Tel: 27 21 447 1075 Cell: 27 82 683 0575 Cel: 27 82 403 3661 Fax: 27 86 674 8321 Fax: 27 86 656 9656 E‐mail: [email protected] E‐mail: [email protected] Web: www.cpasa.tv Web: www.saasp.co.za

Disclaimer: This document was assembled from various publications and websites between 2005 and 2011. It is intended for general research purposes only. Whilst every effort was made to ensure the information herein was correct at time of compilation, we make no warranties of any kind regarding the completeness, accuracy, reliability or suitability of the information. Any reliance you place on such is at your own risk, and we will not be liable for any loss or damage whatsoever arising out of, or in connection with the use of this information.

The following documents were used as reference materials for this document:

• DACST Cultural Industries Growth Strategy (1998) • Department of Trade & Industry Sector Development Strategy for and Television (June 2005); • Western Cape Provincial Government Micro Economic Development Strategy (MEDS) Report for the Film Sector (April 2005) • Commercial Producers Association Industry Survey (2005 ‐ 2011) • South African Association of Stills Producers Annual Survey (2005/6, 2009‐11) • Cape Film Commission Strategic Economic Analysis (2006) • Gauteng Film Commission Economic review (2007) • The Durban & KZN Review (2008) • Eastern Cape Development Corporation Film Sector Review (2009)

THE PRODUCTION OF TV COMMERCIALS AND STILLS PHOTOGRAPHY IN CAPE TOWN

SUMMARY:

• Stills and TV Commercials make up 57.7% of the the turnover of production in the Western Cape

• The combined value of Stills & TV Commercial Production in the province is R1.53 billion.

• Estimated contribution of Stills and Commercials to South African GDP is R2.06 billion.

• 98.9% of the productions in the Western Cape are Stills and TV Commercials.

• Stills and Commercials account for 16818 Production Days annually

• 69.6% of all jobs/labour is created are in the Commercials and Stills sectors.

• The Commercials and Stills sectors create 5957 full time jobs annually.

• 4560 of these jobs are in Cape Town.

• Stills and Commercials contribute to 164,293 Person Days of Employment a Year. 1. THE SOUTH AFRICAN FILM SECTOR i) CLASSIFICATIONS & ACTIVITIES

Statistics South Africa classifies the film and television industry under Division 96: Recreational, Cultural and Sporting Activities. In particular the Film Industry as it is known in South Africa falls under major group 961: Motion picture, radio, television and other entertainment activities. This group is further divided into subgroups relating to the different processes of film and television production namely:

• Motion picture and video production and distribution (Standard Industry Classification (SIC 96111) • Film and tape renting to other industries, booking, delivery and storage (SIC 96112) • Motion picture projection by cinemas (SIC 96121), • Motion picture projection by drive‐in cinemas (SIC 96121), • Radio and television activities (SIC 96130), which includes the production of radio and television programs. (Note: broadcasting itself falls under a separate subgroup, (SIC 75200).)

In other words, “Film” is more than just feature film. The business activities within the sector include amongst others: • Production of original content ‐mainly television programmes, commercials and corporate videos but including feature film; • Facilitation of Production of content ‐ commercials, television, photography and feature film productions that originate overseas and are primarily intended for international distribution ; • Provision of labour, equipment, services and talent for film sector productions; • Provision of financial / legal services to the film industry; • Distribution and exhibition of films and television programmes; • Post production operations such as editing, film lab, sound, graphics, etc. • Animation • Education and Training

ii) BUSINESS MODELS

For purposes of clarity, the South African film industry is actually made up of two distinct business models for production that operate simultaneously in the country, namely:

• Commercial model (or “Production on Demand”) – servicing international clients with little or no creative input, but reaping major economic rewards for participating companies and the wider community.

• Cultural / Creative model – producing local work mainly for SA broadcasters or local distribution, offering cultural integrity but severely under‐resourced and offering significantly lower commercial returns. (The national challenge of course is to move this specific sector to a more economically viable and sustainable platform.)

The distinction between the two models is essentially one of product development and who is responsible for it. In the Creative Model, participants must be skilled at the cost‐ intensive but non‐revenue generating activities such as conceptualisation, financing, and other pre‐production elements involved in creating and developing one’s own products. In contrast, the Commercial Model does not develop its own products but rather on the marketing of services to international standards.

At a structural level, the film sector relies on both vertical linkages between firms at different levels of the value chain (i.e. the availability of crew and services) and horizontal linkages between firms at the same level of the value chain, both to share resources, increase bargaining power, and facilitate the creation of industry standards and marketing campaigns.

Taking these business models into consideration, the following kinds of production are typically undertaken in South Africa and are defined as follows:

• Long Form The term Long Form is typically used in South Africa to describe a variety of filmed production activities that include Feature , Made for TV Movies and direct‐to‐dvd productions. The determining factor of Long Form Production is, (unsurprisingly,) the length of the finished product. The definition of minimum length varies from 40 minutes (Academy of Motion Picture Arts and Sciences rule) to about 90 minutes (the definition in Cambridge Dictionaries Online). Long form can also be used to describe an episode of a TV series that has been extended to the length of a feature film. Such "feature length" episodes are usually series pilots, holiday specials or season finales.

• Television The category “Television” is used to describe a broad range of productions that include documentaries, game shows, reality television, short films, corporate videos and even aerial footage.

• Commercial A television commercial is a production for an advertised product. In comparison with Long Form, Television Commercials are usually short – typically 60, 30, 20 or 10 seconds. In South Africa, the industry usually distinguishes between:

Local Commercial Local Commercials are commercials produced by local advertisers principally for use on South African television

Service Commercial Service Productions are foreign productions featuring advertised product that are serviced in South Africa by a South African production company but without the create inputs of a South African director.

International Commercial Director‐based commercials are productions filmed in South Africa for worldwide distribution, using the creative inputs of a South African director.

• Stills Production Stills Productions most typically function as Service Productions, where foreign photographic shoots are serviced in South Africa by a South African production company but without the create inputs of a South African photographer. Stills Productions produce posters and billboards, point‐of‐sale advertising materials, catalogues, magazine spreads, fashion shoots and product brochures.

• New Media New Media describes new methods for both the creation and dissemination of material. It includes animation, Video Games, Podcasts, Online Broadcasting, Cellphone distribution, Medical Animation and Social Networking. New media productions will become increasing prevalent in the future.

iii) INDUSTRY VALUE CHAIN

Irrespective of the business model, the Value Chain of the film sector is complex; and is generally laid out as follows:

• Concept, Financing and Pre‐Production refers to the planning phase of a production. This starts right at the beginning of the process and includes and film financing. It involves finding the location, planning and scheduling the shoots, budgeting and employing casting and crewing agents. (SIC 96111 / 96130)

• Production/Development and Post Production includes pre‐and postproduction as well as activities related to film financing. These activities can generally be described as the activities required to produce one negative print of the movie. Production is the act of filming, where the disparate parts (crew, equipment, talent etc) are brought together. Post‐production refers to the editing process where the production is edited, and special effects and sound are added. (SIC 96111 / 96130)

The other side of the value chain is determined by what happens to that one “negative” once it is completed, namely MONETISATION.

• Distribution refers to the activities around buying and selling the print.

• Platforms refers to how the Film is packaged into various channels or streams of distribution (eg. Cinema, Pay‐per‐View, DVD sales.) (SIC 96121 / 96112)

• Consumption refers to the manner and level with which audiences / consumers take up the product via its various channels. (SIC 96121 / 96112)

The main difference – and subsequent impact on the Western Cape industry – is that the Commercial Business model is primarily concerned with the provision of on‐demand services for the Production/Development and Post‐Production legs of the value chain. The Conceptualisation, Financing and Distribution is carried out elsewhere, mostly overseas.

In essence this means that whilst the participants in the Commercial model do not reap the rewards of Monetisation, they also do not have to struggle with the Conceptualisation and Financing elements. The Commercial model is thus a pure business service transaction, with fees paid to the Commercial Service company for the delivery of a completed product – which in this case happens to be a “film” or “photograph”.

iv) KEY DRIVERS OF THE COMMERCIAL MODEL

The business model of commercial production is Production on Demand. It relies on the competitive ability of a producer / location to assemble labour, goods, services and products in order to service the specific needs of a production. Drivers of the Commercial Model of Production are as follows:

• Cost; bottom‐line financial feasibility of a location trumps virtually all other issues.

• Cost‐effectiveness is subject to a variety of issues including exchange fluctuations, travel distances, and availability of local hire of skilled cast/crew/equipment/services

• The availability of locations including studios (if studio‐based) influences choices. Please note, the flexibility of a location so that it might “stand in” for somewhere else is a valuable commodity. Few films will be seeking specific Eastern Cape locations.

• The ease of working in that location is extremely important. This is in turn influenced by support from all levels of Government is an important factor ‐ particularly availability of incentives, clear permit approval processes.

• Decisions are further influenced by a variety of unpredictable dynamics that are out of a Municipality’s control, such as seasonal weather, star / director personal preference, or storyline.

• The market is extremely competitive with more and more countries, regions and cities seeking to attract film production. There are now more than 360 office film commissions and offices from more than 40 countries as members of the Association of Film Commissioners International.

• The US is the dominant player, representing an estimated 80% of English‐ speaking film production. Other production centres include the UK, France, Germany, India and Nigeria.

• The market is growing – PWC Entertainment Media Review of 2008‐2012 estimates a CAGR of 6.6% and a value of $2.2 trillion globally by 2012.

• In terms of international product being shot on location, there is a decline in the number of television series being commissioned and drama has declined in favour of reality television.

• Television Commercial and Stills Productions are highly mobile and high value but have the same drivers as feature film – but even tighter timeframes and service demands.

In essence, the decision to film on location should be understood as a differential of Risk versus Cost.

COST

RISK

Cost, particularly in the current economic climate, is of extreme importance. But the cheapest destination in the world will not attract commercial production if there is a perceived risk of shooting in that location. Thus all service destinations work to reduce both costs and risks to create an attractive production environment.

Drivers for Cultural Productions include Local Content regulations from local broadcasters, the availability of funding and production resources, language provisions and the resulting product quality. However once budgets are in place, the same risk‐cost factors also apply.

v) LEGISLATIVE REQUIREMENTS

Legislation governing the Film Sector within South Africa includes:

• The National Film and Video Foundation, Act No 73 of 1997 • The Constitution of South Africa, Act 108 of 1996 • The National Youth Policy of 1997 • Black Economic Empowerment Act 2004 • Skills Development Act 1998 • Skills Development Levy Act 19999 • National Skills Development Strategy – I, 2000‐2005 • National Skills Development Strategy – II, 2005‐2010

The following Acts also impact on Film Activities • The Legal Deposits Act 54 Of 1997 • The Copyright Act 98 Of 1978 • The White Paper on Local Government of 1998

Once production is under way, the sector will must take cognizance of a range of legislation, most notably

• National Environmental Management Act 73 Of 1998 • Performing Animals Protection Act No.24 Of 1935 • National Key Points Act, 1980 • The Traffic Act No. 93 Of 1996 • Basic Conditions Of Employment Act, No 75 Of 1997 • Employment Equity Act • Sectoral Determination 10: Children In The Performance Of Advertising, Artistic And Cultural Activities • Unemployment Insurance Contributions Act 2002 • Skills Development Levy Act 1999 • Environment Conservation Act 73 Of 1989

Many of these are covered by the Permit Requirements set out by city by laws.

Others which may be relevant on a job‐by‐job basis include: • Conservation Of Agricultural Act 43 Of 1983 • National Forest Act 84 Of 1998 • Forest Act 122 Of 1984 • National Water Act 54 Of 1956 • Water Act 54 Of 1956 • Mountain Catchment Areas Act 63 Of 1970 • Sea‐Shore Act 21` Of 1935 • Marine Living Resources Act 18 Of 1998 • Sea Fisheries Act 12 Of 1998 • National Monuments Act 28 Of 1969 • Animal Protection Act 71 Of 1962 • Sea Birds And Seals Protection Act 46 Of 1973 • Income Tax Act 1962 (Fourth Schedule)

Film projects in various stages of production also fall under: • Film Publications Act • Intellectual Property Laws Amendment Act • Counterfeit Goods Act • TRIPS Agreement (WTO copyright protection standards)

The challenge to the Film Sector was that few of these laws were developed in consultation with the film industry. Some of them are in fact completely hostile to production, or at the very least impose impossible requirements onto the producer in order to receive permissions.

Beyond government legislation, the Film Industry in South Africa has also developed a framework of voluntary requirements that are not legislated but govern the day‐to‐day management of productions. These include:

• Locations Code of Conduct • Crew Code of Conduct • Independent Performers Agreement (IPA) • Artists Release Form • Location Release Form

2. SPECIFIC ECONOMIC INDICATORS – WESTERN CAPE i) TURNOVER

The national Film sector is worth around R5.38 billion in revenue per annum. The Western Cape is the largest contributor, with R2.65 billion, annually. Gauteng (R2.43 billion) and KZN (R237.6 million) are the other players. The Eastern Cape’s share of the industry – around R40 million ‐ is around 0.07% of the national total.

In 2007, Strategic Economic Solutions cc. conducted “A Strategic Economic Analysis of the Cape Town and Western Cape Film Industry.” The starting point of the research was to determine the overall size of the industry, by determining the average cost of each of the different types of production.

The project determined that the total turnover of the Western Cape film industry is estimated at R2.65bn for the 2005/6 financial year of which about 77 percent (R2.03bn) occurred in Cape Town. The R2.65 turnover is broken down as follows:

• Long form, with a turnover of R1.12bn, was the largest part of the industry. (this was made up of Inside of long form, feature films at R934.3m and made‐ for‐TV productions R181.3m.)

• Commercials turnover was R0.87bn (this was made up of Service commercials with R631.8m, local commercials with R162.5m and R77.9m for international commercials.)

• Stills Production turnover was R0.66bn.

Thus: Stills and TV Commercials make up R57.7% of the the turnover of production in the Western Cape – a combined value of R1.53 billion.

ii) NUMBER OF PRODUCTIONS

GENRE NUMBER OF PRODUCTIONS Long‐Form 30 TV Commercials 600 Stills Shoots 2100

98.9% of the actual jobs produced in the Western Cape are Stills and Commercials.

In comparative studies, the number of productions in a specific destination is determined by comparing the number of permits issued by the local film office with the number of permits issued by private locations companies, cross‐referencing with the number of jobs contracted by crew agencies, and further supported by film processing reports from local laboratories.

iii) FACTOR COSTS

The average Television Commercial has a budget of R1,27 million. The average stills photography shoot spends R 314 000 during its week‐long production. The factor costs of the various genres of production as they relate to local spend is as follows:

TELEVISION COMMERCIALS: The largest impacts of a TV Commercial are Crew, Equipment and . The five largest expenditure items on a TVC budget amount to 73.3% of the total.

Line Item Budget % Annual Spend in W.Cape Crew 26.45% R230,115,000.00 Equipment 15.68% R136,416,000.00 Art Department 12.48% R108,576,000.00 Post Production 11.03% R95,961,000.00 Locations 7.67% R66,729,000.00 Talent 6.11% R53,157,000.00 Vehicle Hire 5.70% R49,590,000.00 Film Stock 5.67% R49,329,000.00 Catering 4.53% R39,411,000.00 2.42% R21,054,000.00 Talent 6.11% R53,157,000.00

STILLS PHOTOGRAPHIC SHOOTS: The largest impacts of a Stills Production are Talent, Crew and Equipment. These three items amount to 56.3% of the average stills production budget.

Line Item Budget % Annual Spend in W.Cape Talent 20.7% R136,620,000.00 Equipment 16.18% R106,788,000.00 Crew 13.6% R89,760,000.00 Art Department 6.47% R42,702,000.00 Locations 4.85% R32,010,000.00 Vehicle Hire 4.85% R32,010,000.00 Set Construction 1.62% R10,692,000.00

iv) CONTRIBUTION TO TOURISM INFRASTRUCTURE

Travel and tourism product (eg flights, accommodation) are perhaps the most obvious beneficiaries of the film sector.

The CPA reported an average Commercial expenditure for a hotel room of R701.44 per night. Conservatively assuming five international visitors per shoot, and 3 nights accommodation to incorporate 1.99 days per commercial, the Commercial Sector is responsible for an estimated 10,521 bednights at a value of R6,312,960 on accommodation in the province.

SAASP reported an average expenditure for a hotel room of R723.00 per night. Assuming 2 international clients per production for 7.44 nights, this translates to an estimated R22,592,304 on accommodation in the province.

An estimated contribution to hotels in the Western Cape is thus R28,905,264.00 per annum.

Please also note, when staying on location for a production, a Producer provides crew with a per diem of a variable rate.

There is also the less tangible benefit of potential future tourism activity as the result of a film production. Steven R. Miller and Abdul Abdulkadri at the Center for Economic Analysis at Michigan State University 1 quote Ernst and Young’s 2009 New Mexico report that $2.50 is generated in film tourism for every dollar of in‐state production expenditure and that 1998’s The Annals of Tourism Research,2 noted that locations where a successful film has been filmed generally see a 54 percent increase in tourism visits over four years. Other less tangible benefits include the opportunities offered for skills development and education, increased media interest generated by a production, the boost it provides to cultural pride and its links to other artistic and cultural industry sectors.

1 The Economic Impact of Michigan's Motion Picture Production Industry and the Michigan Motion Picture Production Credit ‐ Miller / Abdulkadri (2009) 2 The Annals of Tourism Research ‐ Riley / Baker / Van Doren,(1998)

v) ECONOMIC MULTIPLIERS / CONTRIBUTION TO GDP

As noted by the AFC3, in measuring film sector multipliers, the usual question is: “If this film project involves the spending of $x million, what will be the final impact on economic activity and employment of that spending.”

No satisfactory multiplier has been found to be internationally applicable to the film industry, although figures are generally given between 1.5 and 2.5. The South African industry multiplier is usually given as 2.5, although there does not appear to be a record of how this figure was originally calculated. The Boting / Standish report for the CFC determined that the average multipliers for South African GDP vary from 1.313 to 1.347.

Using this multiplier, the estimated contribution of Stills and Commercials to South African GDP in the 2006 financial year was R2.06 billion. (Long form contribution is R1.49bn)

Thus 58% of the film sector contribution to GDP comes from the Commercial and Stills Photographic sectors.

At the same time the film industry contributed R936m to the Western Cape Gross Geographic Product (GGP), of which R684m is contributed to the Cape Town GGP. The estimate of the contribution to the Western Cape GGP and Cape Town GGP are minimum estimates.

vi) LABOUR

a) Job Creation

The Strategic Economic Solutions report estimated that the film industry created 6,058 full year job equivalents in the Western Cape; while a further minimum 2,501 indirect jobs were also created in the province as a result of the multiplier effect.

Of the 6,058 direct jobs, 1,841 were in long form, 2,459 from commercials and 1,758 in stills. Thus 69.6% of all jobs created are in the Commercials and Stills sectors.

3 Australian Film Commission 2006: The Economic Contribution of a Film Project: A Guide to Issues and Practice in the Use of Multipliers. It is estimated that about 4,638 (77%) of these direct jobs are in Cape Town. Total jobs are the sum of the direct and indirect jobs. It is estimated that in total 8,559 full year job equivalents were sustained throughout the province – 5957 of these in the Commercials and Stills sectors. A minimum 6,552 are in Cape Town – 4560 in the commercials & stills sectors.

Indicator Number Direct Jobs 6058 Indirect Jobs 2501 % Stills / Commercials 69.6% Stills / Commercials Jobs 4217 Provincial Full Year Job Equivalents 8559 Provincial Stills / Commercials 5957 Cape Town Full Year Job 6552 Equivalents Cape Town Stills / Commercials 4560

b) Person Days

Job numbers are notoriously difficult to calculate in an industry that relies on casual / freelance labour that is seasonal in structure. Numbers of person days is an alternative.

The average number of production days in 2006 was 1.99 days per commercial, meaning that Cape Town hosted 1194 tv commercial production days. According to the CPA report, the average number of freelance crew for a commercial was 46, suggesting a total possible employment of 54925 person days for the year.

The SAASP 2005/6 Survey was used to determine the average value of Stills Productions as R314000. SAASP estimates 7 freelance crew per production and an average of 7.44 days per production, indicating an impact on Cape Town labour of 109,368 person days.

Days Shoots Production Days Commercial 1.99 600 1194 Stills 7.44 2100 15624

Production Days Crew per Day Person Days Commercials 1194 46 54,925 Stills 15624 7 109,368

c) Crew & Talent

The Commercial Sector comprises of a broad range of jobs and skills that are specific (or directly translatable) to film production, including:

EXECUTIVE PRODUCER / VIDEO PRODUCER CONTINUITY VTR OPERATOR CO‐PRODUCER ASSOCIATE PRODUCER DESIGN STAGEHAND PRODUCER'S SECRETARY AUTOCUE OPERATOR UTILITY PERSON / GENERAL DIRECTOR 1ST ASSISTANT ART ASSISTANT 2ND UNIT DIRECTOR DIRECTOR TELEVISION ASSISTANT DIALOGUE DIRECTOR 2ND ASSISTANT ART DIRECTOR'S SECRETARY DIRECTOR CAMERA PRODUCTION TRAINEE DIRECTOR OF CAST DRAFTER PHOTOGRAPHY GRAPHIC ARTIST EXTRAS / BACKGROUND 1ST ASSISTANT ARTISTS CAMERAPERSON STAND‐INS CONSTRUCTION 2ND ASSISTANT STUNT CO‐ORDINATOR CONSTRUCTION CO‐ CAMERAPERSON CHOREOGRAPHER ORDINATOR TRAINEE TUTOR / DIALOGUE COACH HEAD CARPENTER SPECIAL EQUIPMENT CASTING DIRECTOR CARPENTER OPERATOR CASTING SECRETARY SCENIC PAINTER ADDITIONAL CAMERA CHILDREN'S CO‐ORDINATOR HEAD PAINTER OPERATOR GUARDIAN PAINTER ADDITIONAL CAMERA 1ST STAND‐BY CARPENTER ASSISTANT PRODUCTION STAND‐BY PAINTER ADDITIONAL CAMERA 2ND PRODUCTION SUPERVISOR STRIKE CREW ASSISTANT PRODUCTION MANAGER STILL PHOTOGRAPHER ASSISTANT PRODUCTION SET DRESSING CAMERAS MANAGER AUDIO FACILITIES UNIT MANAGER ASSISTANT VIDEO MACHINES MACHINES LOCATION SCOUT SPECIAL EQUIPMENT 1ST VIDEO TECHNICAL CREW GRAPHIC GENERATOR 2ND ASSISTANT DIRECTOR TECHNICAL SUPERVISOR VIDEO / TELEPROMPTER 3RD ASSISTANT DIRECTOR SUPPLIES PRODUCTION ASSISTANT FLOOR MANAGER ‐ PANAGLIDE PRODUCTION TRAINEE LIGHTING CONSULTANT GENERATORS PRODUCTION CO‐ LIGHTING DIRECTOR ORDINATOR BOARDMAN PRODUCTION SECRETARY ELECTRICIAN ELECTRICAL PRODUCTION ACCOUNTANT AUDIO BOOKKEEPER BOOM LOCAL CONTACT CAMERA PERSON ELECTRICIAN TECHNICAL ADVISOR TONGUE OPERATOR RIGGING / STRIKING INTERPRETER DRIVER GENERATOR OPERATOR DIGITAL / OPTICAL EFFECTS MAGNETIC MASTER STOCK GRIP MACHINES (1/4") CAMERAS MAGNETIC TRANSFER SECOND GRIP VIDEOTAPE MACHINES SYNCHRONIZATION GRIP AUDIO EDGE CODING CRANE GRIP ULTIMATTE / IMAGEMATTE RUSHES/ SCREENING RIGGING / STRIKING TELECINE CONTINUITY / PRODUCTION LABORERS AUTOCUE STILLS TELEPROMPTER OPERATOR INTERCOM GRAPHICS GENERATOR EDITING PRODUCTION SOUND EDITING ROOMS MIXER / SOUND RECORDIST SPECIAL EFFECTS EDITING EQUIPMENT SPECIAL EFFECTS PICTURE EDITING SUPPLIES CABLE PERSON SUPERVISOR SOUND EDITING SUPPLIES PLAYBACK OPERATOR SPECIAL EFFECTS ASSISTANT POST PRODUCTION OFFICE EXPENSES POST STOCK SUPERVISOR / CO‐ PROCESSING POST PRODUCTION ORDINATOR PRINTING LABORATORY EDITOR FILM TO TAPE TRANSFER ASSISTANT EDITOR STOCK ORIGINAL EFFECTS APPRENTICE EDITOR RUSHES SYNCHRONISATION RECORDING EFFECTS LIBRARY SUPPLIES EDITOR LABORATORY SPECIAL SOUND TREATMENT EDITOR RAW STOCK SOUND TRANSFER ASSISTANT SOUND EDITOR PROCESSING SOUND SLASHES / DUPES LOOPING SUPERVISOR VIDEO CASSETTES (RUSHES) POST SYNC RECORDING TAPE SELECTION (A.D.R.) STUDIO SPECIAL PRINTING CONTROL ROOM

vii) SECTOR SUPPLIERS

The Commercial Sector of the film industry has economic impact across a range of other sectors. Suppliers to the Film Industry who may earn part of their annual revenues from the provision of goods and services include:

PROPS CO‐ORDINATOR CAPTAIN PICTURE VEHICLES RENTALS ASSISTANT PROPERTY CO‐CAPTAIN / HEAD DRIVER PICTURE VEHICLE MASTER DRIVER PURCHASES PROPERTY BUYER PRODUCTION CARS PICTURE VEHICLE TRUCKS / VANS MODIFICATIONS WRANGLING BUSES PICTURE VEHICLE HEAD WRANGLER MOTORHOMES INSURANCE TALENT CARS TRANSPORTATION SPECIAL SUPPORT VEHICLES WARDROBE DRESSING / HAIR / MAKEUP STUNTS PURCHASES / ROOMS RENTALS ASSISTANT COSTUME STUDIO SPECIAL EFFECTS ARMAMENTS DESIGNER EQUIPMENT HEAD WARDROBE SITE RENTALS EQUINE ASSISTANT WARDROBE PRIVATE HOME RENTALS FEED / STABLING SEAMSTRESS / TAILOR PRIVATE “STUDIO” RENTALS TRANSPORT SITE POWER VETERINARY SERVICES MAKEUP / HAIR CATERING MAKEUP ARTIST CRAFT SERVICE ASSISTANT MAKEUP ARTIST TABLES / CHAIRS/ HALLS MONITORS HAIRSTYLIST GREEN ROOM DRESSING / MAKEUP ROOMS HAIRDRESSER FIRST AID GREEN ROOMS ASSISTANT HAIRDRESSER CREW OUTFITTING CARPENTRY SHOP SPECIAL EFFECTS MAKEUP / MEDICAL / INSURANCE/ VISA VIDEO REMOTE TECHICITIES HAIR PROVISION MOBILE PHONES WIG MAKERS / HAIRPIECES PUBLIC RELATIONS DIGITAL / OPTICAL EFFECTS MAKEUP RENTALS MACHINES MAKEUP SUPPLIES HOTELS CRANE RENTALS HAIR SUPPLIES TAXIS / LIMOUSINES SCAFFOLDING WIGS SUPPLIES EXCESS BAGGAGE WIRELESS SPECIAL EFFECTS SHIPPING WALKIE / TALKIES CUSTOMS / BROKERAGE SERVICES ORIGINAL EFFECTS PRODUCTION OFFICE RECORDING OFFICE RENTALS EFFECTS LIBRARY SUPPLIES HEAT & LIGHT CARPENTRY RENTALS SPECIAL SOUND TREATMENT OFFICE FURNITURE CARPENTRY PURCHASES SOUND TRANSFER OFFICE EQUIPMENT PAINTING RENTALS SOUND SLASHES / DUPES PHOTOCOPY PAINTING PURCHASES POST SYNC RECORDING STATIONERY / SUPPLIES BACKDROPS / (A.D.R.) TELEPHONE / TELEX / MURALSSUPPLIES UNIT PUBLICITY POSTAGE DRAWING SUPPLIES UNIT PUBLICIST COURIER DRAWING EQUIPMENT PUBLICITY/PRESS EXPENSES SERVICES PHOTO EQUIPMENT OFFICE CRAFT SERVICE STOCK PRINTS / STILLS/PRINTING/PROCESSIN CLEANING PROCESSING G SECURITY BLUEPRINTING PROMOTION STUDIO / BACKLOT RENTALS GRAPHICS / SIGNS WEB DESIGNERS POWER CARPENTRY SHOP RENTALS

3. CONSTRAINTS ON COMMERCIAL & STILLS PRODUCTION IN CAPE TOWN

i) CONSTRAINTS ON COMMERCIAL PRODUCTION ACTIVITY IN CAPE TOWN

In spite of the stellar economic contribution of Stills and Commercials, the City of Cape Town continues to constraint the growth and development of the sector. In particular:

• The City of Cape Town Film Permit Office has not been functioning efficiently; producers have no certainty that their permit applications have been received, logged, actioned, optioned or issued. The staff is frequently criticized for lacking service values of accountability, professionalism, integrity, impartiality, transparency, innovation and respect. NB. We trust the new Film Permit Application System will alleviate this issue somewhat

• The new System will not solve the problem of City staff, line departments and officials treating film production as a “nuisance” and an unwelcome extra burden to their day. Film Productions of any size are essentially treated as “last priority” by departments.

• City of Cape Town departments continue to make unilateral decisions with regard to location availability. This causes chaos and heightens the riskiness of a Cape Town production.

• City by‐laws are unfairly and inequitably applied. The “rules” as adhered to by the film industry are different to all other activities and events in Cape Town i.e. road closures, construction, concerts, sporting events & deliveries.

• The City does not list the locations that are problem areas and “off limits” areas – nor offer explanations of the unavailability. Without this information, production companies are unable to plan ahead and frequently present location options to their clients that are no longer available.

• No work has been done to build or repair relations with local communities, nor to make a case for the film industry;

• Restrictions on overtime for traffic officers (including retired officers) and other city officials limit the viability of production.

• The requirements for concurrence and/or consent by neighbours & residence associations hold the film industry to ransom. (Certain councillors have been known to block filming because their friends “don’t like it.”)

• The role, function & responsibility of Environmental Control Officers (ECO) has yet to be properly defined. These roles are therefore open to abuse.

ii) PROPOSALS TO ALLEVIATE CONSTRAINTS ON BUSINESS

A: CHANGES TO DELEGATION OF AUTHORITY TO DECIDE ON FILM MATTERS

• RESCIND DELEGATED AUTHORITY ON FILM MATTERS Authority to make decisions that affect film industry activities should be placed high within the city structures – for example within your office. Delegation of authority has not worked when power has been placed in the hands of people who are already over‐worked, who do not see the film sector as a priority (or even a nice‐to‐have) and see no benefit from making any effort. Time and time again they have introduced anti‐film management protocols at their own whim, and frankly rescinding their power to do this should be a priority.

• CREATE LINE DEPARTMENT TEAM Create internal team of line department representatives to coordinate and act as go‐to people on all film issues. Each member to be available on cellphone and email out of office hours. (see below re. overtime needs)

• CREATE NEW PROCESS FOR DEPARTMENTS TO INTRODUCE FILM MANAGEMENT Instead, if a Department wishes to introduce film management protocols, they must be registered their proposal with your office. Via appropriate channels, an opportunity must be given to the industry to comment on or object to the recommendation – so that we can make sure the decisions being made are practical and film‐friendly. Timeframes can be strict, so that really problem areas can be addressed quickly.

• CREATE NEW PROCESS TO MANAGE INFORMATION Once a decision has been made to introduce a particular system or restrict access to a location, this information must be stored in a central “BOOK OF DECISIONS” – which should be logically categorised and available on the CFC website. (this would prevent nasty surprises, and also prevent the CTFPO from thinking that one meeting a year is sufficient to communicate all the locations restrictions.)

B: CREATE APPROPRIATE MANAGEMENT PROTOCOLS VIA CONSULTATION

• DETERMINE STATUS QUO OF FILM MANAGEMENT PROTOCOLS Within one week, line department heads to clarify the rules – as defined by the by‐laws only – that affect film in their respective divisions. Within one week, line department heads to stipulate in writing the status of areas within their jurisdiction – green for good, orange for difficult, red for out of bounds. These are not definitive, but will be the starting point for discussion.

• WITHDRAWAL OF THE RIGHT OF DEPARTMENTS TO MAKE UP THEIR OWN RULES I.R.O FILM SECTOR Cancel all film management protocols that have been introduced by line departments that are not covered by by‐laws with immediate effect. All other rules – three cars, three stills shoots on beaches etc. – to fall away immediately. All rules that are applied to the film sector prejudicially (eg. Special permits / recces for Atlantis Dunes) to fall away immediately. Letter to the Line Departments notifying them that they may not unilaterally restrict film activity or ban filming in their jurisdictions.

• NEIGHBOURHOOD NOTIFICATIONS Remove all official requirements for film productions to notify neighbours. If the production and its parking is legal and no accesses are blocked, it is no‐one’s business but the home owner as to what they do on their property. Furthermore, since the average TV commercial shoot lasts 1.99 days, it is impossible for the Production Company to know how often a property has been used for events, parties, other shoots etc. Neighbourhood notification should therefore be the responsibility of the homeowner, which the handles on the homeowners behalf.

• PLAN CONSULTATIVE WORKSHOP TO INTRODUCE NEW, IMPROVED MANAGEMENT Workshop a meeting with the heads of all line departments and their operatives with the film industry Locations Committee to determine more appropriate protocols.

• MANAGE OVERTIME Pursue Legal / HR requirements to amend overtime restrictions so that the City’s departments reflect industry operating norms.

C: PUBLIC STATEMENT OF FILM FRIENDLINESS

• CREATE UNEQUIVOCAL POSITION STATEMENT ON FILM‐FRIENDLINESS Within next month, the Mayor / Premier to issue statements on film‐ friendliness targeted towards different stakeholder groups: Communities / Residents, Business, Council Workers, etc. The statement to unequivocally note the City’s recognition of the industry as a key strategic growth sector, and the need to create additional location capacity. Importantly, the statement to be backed by action.

• AGGRESSIVE LOCAL PR Within next three months, The Cape Film Commission to create and implement a comprehensive marketing & public relations plan to communicate the city’s position to the residents, and ideally to create platforms of dialogue.

• CONTROL THE COUNCILLORS All Ward Councillors to be instructed that they do not have authority over private businesses and that their comments may be considered only as recommendations rather than law.

• IMPROVE CHANNELING OF FEES TO AFFECTED COMMUNITIES Seek immediate legal input on creation of a mechanism whereby a fee is charged and paid to a trust, which can then be distributed to areas most affected by film. The “no ring fencing” rule is something the film industry objects to as much as the public.

D: UPGRADE FILM OFFICE

• SCRAP “EACH PERMIT WILL BE JUDGED ON MERIT” Each production that applies for a permit has already had its merit determined by a funder who wishes to pay for that production to be completed. The issue therefore is not “merit” but whether the city can accommodate the shoot. The onus should therefore be on the City to prove why a shoot should not take place, rather than the production company having to argue why it should. This is the process in New Mexico for instance, where line departments have 24 hours to object, otherwise the permit is issued.

• IMPROVE OPERATING ENVIRONMENT Introduce emails for film office staff with immediate effect. Adopt the use of a single map book for booking cross‐reference. Just pick one, any one, and then use it. Request GPS coordinates on permit applications. Just about any cellphone will allow users to give this.

• PROVIDE TRAINING Not only in permit issuance processes but in problem solving, customer service, ergonomic management, time management, cross cultural sensitivity etc.

• INSTRUCT CAPE FILM COMMISSION TO HIRE LOCATION CONSULTANT Provide written permission to the CFC to use resources to hire a professional locations consultant from the industry

E: BLANKET PERMIT FOR MICROSHOOTS

• ALLEVIATE PERMIT OFFICE BOTTLENECKS THROUGH INTRODUCTION OF BLANKET MICROSHOOT PERMITS Permits for microshoots on a per‐job rather than per‐location basis. Culture of CTFPO / City to move from “Permission” based decisions to “Notification” based support. (see Annexure A for proposed structure.)

F: ENVIRONMENTAL CONTROL OFFICERS

• CLARIFY REQUIREMENTS Within one week, demand that affected departments clarify what qualifications / experience / requirements they expect of Environmental Control Officers. Within one week, departments to also clarify which locations require ECOs, or which filming circumstances. Hold a meeting between Line Departments, Locations, ECO Agencies and the Industry’s Locations Committee to agree on the suitability of the City’s proposals.

Annexure A: Proposed Process for Management of Microshoot Permits in Cape Town

Rationale • An estimated 70% of permit applications are for microshoots. • Microshoots operate as small, self contained teams of 10 people travelling in a minibus and a small, 1‐ton panel van for equipment. • Their impacts are similar to those of news crews. • The typical stills microshoot runs over 8 days and utilises a range of locations, both private and public. • Producers typically identify the range of locations they require in advance, and then apply for permits to guarantee access to those locations. • However, the key to delivery of a successful microshoot is flexibility; producers need to be able to switch locations on demand ‐ generally due to weather changes (which includes changes in wind direction) • At present, this core element of flexibility is constrained by the CTFPO permit process for microshoots, which demands each location be pre‐booked a minimum of 24 hours in advance. • Unfortunately, the CTFPO does not have the capacity to administrate the levels of flexibility that microshoots demand. • In spite of this, the City of Cape Town has clung to this outdated “permissions” procedure due to the demands of ‘governance’. • SAASP argues that a more flexible, innovative process for managing micro‐shoots – via notification rather than permissions ‐ could be introduced to improve Stills Operation and still retain the governance, diligence and reporting required by the City.

Proposal SAASP proposes the following:

• available ONLY for micro‐shoots – a maximum of 10 people travelling in a minibus and a small, 1‐ton panel van for equipment. • ANY LARGER NUMBER OF PEOPLE OR VEHICHLES MUST APPLY FOR A DAILY PERMIT AS NORMAL • ANY SPECIFIC REQUESTED LOCATION MUST APPLY FOR A DAILY PERMIT AS NORMAL

• All microshoots must apply for a PERMIT PER JOB, noting the days on set, and the proposed range of locations. (this gives the CTFPO the opportunity to flag any conflicts)