THEPRODUCTIONOFTVCOMMERCIALSANDSTILLSPHOTOGRAPHYINCAPETOWNAnoverviewoftheimpactsandconstraintsofthecommercialproductionsectorontheCapeTowneconomy.

MartinCuff,August4th2011

CommercialProducersAssociation SAASPPOBox413005 POBox51649Craighall Waterfront2024 8002Tel:27116736809 Tel:27214471075Cell:27826830575 Cel:27824033661Fax:27866748321 Fax:27866569656E‐mail:bobby@cpasa.tv E‐mail:info@saasp.co.zaWeb:www.cpasa.tv Web:www.saasp.co.za

Disclaimer:Thisdocumentwasassembledfromvariouspublicationsandwebsitesbetween2005and2011.Itisintendedforgeneralresearchpurposesonly.Whilsteveryeffortwasmadetoensuretheinformationhereinwascorrectattimeofcompilation,wemakenowarrantiesofanykindregardingthecompleteness,accuracy,reliabilityorsuitabilityoftheinformation.Anyrelianceyouplaceonsuchisatyourownrisk,andwewillnotbeliableforanylossordamagewhatsoeverarisingoutof,orinconnectionwiththeuseofthisinformation.Thefollowingdocumentswereusedasreferencematerialsforthisdocument:

• DACSTCulturalIndustriesGrowthStrategy(1998)• DepartmentofTrade&IndustrySectorDevelopmentStrategyforFilmandTelevision(June

2005);• WesternCapeProvincialGovernmentMicroEconomicDevelopmentStrategy(MEDS)Reportfor

theFilmSector(April2005)• CommercialProducersAssociationIndustrySurvey(2005‐2011)• SouthAfricanAssociationofStillsProducersAnnualSurvey(2005/6,2009‐11)• CapeFilmCommissionStrategicEconomicAnalysis(2006)• GautengFilmCommissionEconomicreview(2007)• TheDurban&KZNFilmIndustryReview(2008)• EasternCapeDevelopmentCorporationFilmSectorReview(2009)

THEPRODUCTIONOFTVCOMMERCIALSANDSTILLSPHOTOGRAPHYINCAPETOWN

SUMMARY:

• StillsandTVCommercialsmakeup57.7%ofthetheturnoverofproductionintheWesternCape

• ThecombinedvalueofStills&TVCommercialProductionintheprovinceisR1.53billion.

• EstimatedcontributionofStillsandCommercialstoSouthAfricanGDPisR2.06

billion.• 98.9%oftheproductionsshotintheWesternCapeareStillsandTVCommercials.

• StillsandCommercialsaccountfor16818ProductionDaysannually

• 69.6%ofalljobs/labouriscreatedareintheCommercialsandStillssectors.

• TheCommercialsandStillssectorscreate5957fulltimejobsannually.

• 4560ofthesejobsareinCapeTown.

• StillsandCommercialscontributeto164,293PersonDaysofEmploymentaYear.

1. THESOUTHAFRICANFILMSECTORi) CLASSIFICATIONS&ACTIVITIESStatisticsSouthAfricaclassifiesthefilmandtelevisionindustryunderDivision96:Recreational,CulturalandSportingActivities.InparticulartheFilmIndustryasitisknowninSouthAfricafallsundermajorgroup961:Motionpicture,radio,televisionandotherentertainmentactivities.Thisgroupisfurtherdividedintosubgroupsrelatingtothedifferentprocessesoffilmandtelevisionproductionnamely:

• Motionpictureandvideoproductionanddistribution(StandardIndustryClassification(SIC96111)

• Filmandtaperentingtootherindustries,booking,deliveryandstorage(SIC96112)

• Motionpictureprojectionbycinemas(SIC96121),• Motionpictureprojectionbydrive‐incinemas(SIC96121),• Radioandtelevisionactivities(SIC96130),whichincludestheproductionof

radioandtelevisionprograms.(Note:broadcastingitselffallsunderaseparatesubgroup,(SIC75200).)

Inotherwords,“Film”ismorethanjustfeaturefilm.Thebusinessactivitieswithinthesectorincludeamongstothers:

• Productionoforiginalcontent‐mainlytelevisionprogrammes,commercialsandcorporatevideosbutincludingfeaturefilm;

• FacilitationofProductionofcontent‐commercials,television,photographyandfeaturefilmproductionsthatoriginateoverseasandareprimarilyintendedforinternationaldistribution;

• Provisionoflabour,equipment,servicesandtalentforfilmsectorproductions;

• Provisionoffinancial/legalservicestothefilmindustry;• Distributionandexhibitionoffilmsandtelevisionprogrammes;• Postproductionoperationssuchasediting,filmlab,sound,graphics,etc.• Animation• EducationandTraining

ii) BUSINESSMODELSForpurposesofclarity,theSouthAfricanfilmindustryisactuallymadeupoftwodistinctbusinessmodelsforproductionthatoperatesimultaneouslyinthecountry,namely:

• Commercialmodel(or“ProductiononDemand”)–servicinginternationalclientswithlittleornocreativeinput,butreapingmajoreconomicrewardsforparticipatingcompaniesandthewidercommunity.

• Cultural/Creativemodel–producinglocalworkmainlyforSAbroadcastersor

localdistribution,offeringculturalintegritybutseverelyunder‐resourcedandofferingsignificantlylowercommercialreturns.(Thenationalchallengeofcourseistomovethisspecificsectortoamoreeconomicallyviableandsustainableplatform.)

Thedistinctionbetweenthetwomodelsisessentiallyoneofproductdevelopmentandwhoisresponsibleforit.IntheCreativeModel,participantsmustbeskilledatthecost‐intensivebutnon‐revenuegeneratingactivitiessuchasconceptualisation,financing,andotherpre‐productionelementsinvolvedincreatinganddevelopingone’sownproducts.Incontrast,theCommercialModeldoesnotdevelopitsownproductsbutratheronthemarketingofservicestointernationalstandards.Atastructurallevel,thefilmsectorreliesonbothverticallinkagesbetweenfirmsatdifferentlevelsofthevaluechain(i.e.theavailabilityofcrewandservices)andhorizontallinkagesbetweenfirmsatthesamelevelofthevaluechain,bothtoshareresources,increasebargainingpower,andfacilitatethecreationofindustrystandardsandmarketingcampaigns.Takingthesebusinessmodelsintoconsideration,thefollowingkindsofproductionaretypicallyundertakeninSouthAfricaandaredefinedasfollows:

• LongFormThe term Long Form is typically used in South Africa to describe a variety offilmedproductionactivitiesthatincludeFeatureFilms,MadeforTVMoviesanddirect‐to‐dvd productions. The determining factor of Long Form Production is,(unsurprisingly,) the lengthof the finishedproduct. Thedefinitionofminimumlength varies from 40minutes (Academy ofMotion Picture Arts and Sciencesrule)toabout90minutes(thedefinitioninCambridgeDictionariesOnline).Longform can also be used to describe an episode of a TV series that has beenextended to the length of a feature film. Such "feature length" episodes areusuallyseriespilots,holidayspecialsorseasonfinales.

• TelevisionThecategory“Television”isusedtodescribeabroadrangeofproductionsthatinclude documentaries, game shows, reality television, short films, corporatevideosandevenaerialfootage.

• Commercial

Atelevisioncommercialisaproductionforanadvertisedproduct.IncomparisonwithLongForm,TelevisionCommercialsareusuallyshort–typically60,30,20or10seconds.InSouthAfrica,theindustryusuallydistinguishesbetween:

LocalCommercialLocal Commercials are commercials produced by local advertisersprincipallyforuseonSouthAfricantelevisionServiceCommercialServiceProductionsareforeignproductionsfeaturingadvertisedproductthatareservicedinSouthAfricabyaSouthAfricanproductioncompanybutwithoutthecreateinputsofaSouthAfricandirector.InternationalCommercialDirector‐based commercials are productions filmed in South Africa forworldwide distribution, using the creative inputs of a South Africandirector.

• StillsProduction

StillsProductionsmost typically functionasServiceProductions,where foreignphotographicshootsareserviced inSouthAfricabyaSouthAfricanproductioncompanybutwithout the create inputs of a SouthAfricanphotographer. StillsProductionsproducepostersandbillboards,point‐of‐saleadvertisingmaterials,catalogues,magazinespreads,fashionshootsandproductbrochures.

• NewMediaNewMediadescribesnewmethodsforboththecreationanddisseminationofmaterial. It includes animation, Video Games, Podcasts, Online Broadcasting,Cellphone distribution, Medical Animation and Social Networking. Newmediaproductionswillbecomeincreasingprevalentinthefuture.

iii) INDUSTRYVALUECHAINIrrespectiveofthebusinessmodel,theValueChainofthefilmsectoriscomplex;andisgenerallylaidoutasfollows:

• Concept,FinancingandPre‐Productionreferstotheplanningphaseofa

production.Thisstartsrightatthebeginningoftheprocessandincludesscreenwritingandfilmfinancing.Itinvolvesfindingthelocation,planningandschedulingtheshoots,budgetingandemployingcastingandcrewingagents.(SIC96111/96130)

• Production/DevelopmentandPostProductionincludespre‐andpostproductionaswellasactivitiesrelatedtofilmfinancing.Theseactivitiescangenerallybedescribedastheactivitiesrequiredtoproduceonenegativeprintofthemovie.Productionistheactoffilming,wherethedisparateparts(crew,equipment,talentetc)arebroughttogether.Post‐productionreferstotheeditingprocesswheretheproductionisedited,andspecialeffectsandsoundareadded.(SIC96111/96130)

Theothersideofthevaluechainisdeterminedbywhathappenstothatone“negative”onceitiscompleted,namelyMONETISATION.

• Distributionreferstotheactivitiesaroundbuyingandsellingtheprint.

• PlatformsreferstohowtheFilmispackagedintovariouschannelsorstreamsofdistribution(eg.Cinema,Pay‐per‐View,DVDsales.)(SIC96121/96112)

• Consumptionreferstothemannerandlevelwithwhichaudiences/consumers

takeuptheproductviaitsvariouschannels.(SIC96121/96112)

Themaindifference–andsubsequentimpactontheWesternCapeindustry–isthattheCommercialBusinessmodelisprimarilyconcernedwiththeprovisionofon‐demandservicesfortheProduction/DevelopmentandPost‐Productionlegsofthevaluechain.TheConceptualisation,FinancingandDistributioniscarriedoutelsewhere,mostlyoverseas.InessencethismeansthatwhilsttheparticipantsintheCommercialmodeldonotreaptherewardsofMonetisation,theyalsodonothavetostrugglewiththeConceptualisationandFinancingelements.TheCommercialmodelisthusapurebusinessservicetransaction,withfeespaidtotheCommercialServicecompanyforthedeliveryofacompletedproduct–whichinthiscasehappenstobea“film”or“photograph”.iv) KEYDRIVERSOFTHECOMMERCIALMODELThebusinessmodelofcommercialproductionisProductiononDemand.Itreliesonthecompetitiveabilityofaproducer/locationtoassemblelabour,goods,servicesandproductsinordertoservicethespecificneedsofaproduction.DriversoftheCommercialModelofProductionareasfollows:

• Cost;bottom‐linefinancialfeasibilityofalocationtrumpsvirtuallyallotherissues.

• Cost‐effectivenessissubjecttoavarietyofissuesincludingexchangefluctuations,traveldistances,andavailabilityoflocalhireofskilledcast/crew/equipment/services

• Theavailabilityoflocationsincludingstudios(ifstudio‐based)influences

choices.Pleasenote,theflexibilityofalocationsothatitmight“standin”forsomewhereelseisavaluablecommodity.FewfilmswillbeseekingspecificEasternCapelocations.

• Theeaseofworkinginthatlocationisextremelyimportant.Thisisinturn

influencedbysupportfromalllevelsofGovernmentisanimportantfactor‐particularlyavailabilityofincentives,clearpermitapprovalprocesses.

• Decisionsarefurtherinfluencedbyavarietyofunpredictabledynamicsthatare

outofaMunicipality’scontrol,suchasseasonalweather,star/directorpersonalpreference,orstoryline.

• Themarketisextremelycompetitivewithmoreandmorecountries,regions

andcitiesseekingtoattractfilmproduction.Therearenowmorethan360

officefilmcommissionsandofficesfrommorethan40countriesasmembersoftheAssociationofFilmCommissionersInternational.

• TheUSisthedominantplayer,representinganestimated80%ofEnglish‐

speakingfilmproduction.OtherproductioncentresincludetheUK,France,Germany,IndiaandNigeria.

• Themarketisgrowing–PWCEntertainmentMediaReviewof2008‐2012

estimatesaCAGRof6.6%andavalueof$2.2trilliongloballyby2012.

• Intermsofinternationalproductbeingshotonlocation,thereisadeclineinthenumberoftelevisionseriesbeingcommissionedanddramahasdeclinedinfavourofrealitytelevision.

• TelevisionCommercialandStillsProductionsarehighlymobileandhighvalue

buthavethesamedriversasfeaturefilm–buteventightertimeframesandservicedemands.

Inessence,thedecisiontofilmonlocationshouldbeunderstoodasadifferentialofRiskversusCost.

Cost,particularlyinthecurrenteconomicclimate,isofextremeimportance.Butthecheapestdestinationintheworldwillnotattractcommercialproductionifthereisaperceivedriskofshootinginthatlocation.Thusallservicedestinationsworktoreducebothcostsandriskstocreateanattractiveproductionenvironment.

COST

RISK

DriversforCulturalProductionsincludeLocalContentregulationsfromlocalbroadcasters,theavailabilityoffundingandproductionresources,languageprovisionsandtheresultingproductquality.Howeveroncebudgetsareinplace,thesamerisk‐costfactorsalsoapply.v) LEGISLATIVEREQUIREMENTS

LegislationgoverningtheFilmSectorwithinSouthAfricaincludes:

• TheNationalFilmandVideoFoundation,ActNo73of1997• TheConstitutionofSouthAfrica,Act108of1996• TheNationalYouthPolicyof1997• BlackEconomicEmpowermentAct2004• SkillsDevelopmentAct1998• SkillsDevelopmentLevyAct19999• NationalSkillsDevelopmentStrategy–I,2000‐2005• NationalSkillsDevelopmentStrategy–II,2005‐2010

ThefollowingActsalsoimpactonFilmActivities

• TheLegalDepositsAct54Of1997• TheCopyrightAct98Of1978• TheWhitePaperonLocalGovernmentof1998

Onceproductionisunderway,thesectorwillmusttakecognizanceofarangeoflegislation,mostnotably

• NationalEnvironmentalManagementAct73Of1998• PerformingAnimalsProtectionActNo.24Of1935• NationalKeyPointsAct,1980• TheTrafficActNo.93Of1996• BasicConditionsOfEmploymentAct,No75Of1997• EmploymentEquityAct• SectoralDetermination10:ChildrenInThePerformanceOfAdvertising,Artistic

AndCulturalActivities• UnemploymentInsuranceContributionsAct2002• SkillsDevelopmentLevyAct1999• EnvironmentConservationAct73Of1989

ManyofthesearecoveredbythePermitRequirementssetoutbycitybylaws.Otherswhichmayberelevantonajob‐by‐jobbasisinclude:

• ConservationOfAgriculturalAct43Of1983

• NationalForestAct84Of1998• ForestAct122Of1984• NationalWaterAct54Of1956• WaterAct54Of1956• MountainCatchmentAreasAct63Of1970• Sea‐ShoreAct21`Of1935• MarineLivingResourcesAct18Of1998• SeaFisheriesAct12Of1998• NationalMonumentsAct28Of1969• AnimalProtectionAct71Of1962• SeaBirdsAndSealsProtectionAct46Of1973• IncomeTaxAct1962(FourthSchedule)

Filmprojectsinvariousstagesofproductionalsofallunder:

• FilmPublicationsAct• IntellectualPropertyLawsAmendmentAct• CounterfeitGoodsAct• TRIPSAgreement(WTOcopyrightprotectionstandards)

The challenge to the Film Sector was that few of these laws were developed inconsultation with the film industry. Some of them are in fact completely hostile toproduction,orat thevery least impose impossible requirementsonto theproducer inordertoreceivepermissions.Beyondgovernment legislation, theFilm Industry inSouthAfricahasalsodevelopedaframeworkofvoluntaryrequirementsthatarenotlegislatedbutgoverntheday‐to‐daymanagementofproductions.Theseinclude:

• LocationsCodeofConduct• CrewCodeofConduct• IndependentPerformersAgreement(IPA)• ArtistsReleaseForm• LocationReleaseForm

2. SPECIFICECONOMICINDICATORS–WESTERNCAPE

i) TURNOVER

ThenationalFilmsectoriswortharoundR5.38billioninrevenueperannum.TheWesternCapeisthelargestcontributor,withR2.65billion,annually.Gauteng(R2.43billion)andKZN(R237.6million)aretheotherplayers.TheEasternCape’sshareoftheindustry–aroundR40million‐isaround0.07%ofthenationaltotal.

In2007,StrategicEconomicSolutionscc.conducted“AStrategicEconomicAnalysisoftheCapeTownandWesternCapeFilmIndustry.”Thestartingpointoftheresearchwastodeterminetheoverallsizeoftheindustry,bydeterminingtheaveragecostofeachofthedifferenttypesofproduction.

TheprojectdeterminedthatthetotalturnoveroftheWesternCapefilmindustryisestimatedatR2.65bnforthe2005/6financialyearofwhichabout77percent(R2.03bn)occurredinCapeTown.TheR2.65turnoverisbrokendownasfollows:

• Longform,withaturnoverofR1.12bn,wasthelargestpartoftheindustry.(thiswasmadeupofInsideoflongform,featurefilmsatR934.3mandmade‐for‐TVproductionsR181.3m.)

• CommercialsturnoverwasR0.87bn(thiswasmadeupofServicecommercialswithR631.8m,localcommercialswithR162.5mandR77.9mforinternationalcommercials.)

• StillsProductionturnoverwasR0.66bn.

Thus:StillsandTVCommercialsmakeupR57.7%ofthetheturnoverofproductionintheWesternCape–acombinedvalueofR1.53billion.ii) NUMBEROFPRODUCTIONS

GENRE NUMBEROFPRODUCTIONSLong‐Form 30TVCommercials 600StillsShoots 210098.9%oftheactualjobsproducedintheWesternCapeareStillsandCommercials.Incomparativestudies,thenumberofproductionsinaspecificdestinationisdeterminedbycomparingthenumberofpermitsissuedbythelocalfilmofficewiththe

numberofpermitsissuedbyprivatelocationscompanies,cross‐referencingwiththenumberofjobscontractedbycrewagencies,andfurthersupportedbyfilmprocessingreportsfromlocallaboratories.iii) FACTORCOSTSTheaverageTelevisionCommercialhasabudgetofR1,27million.TheaveragestillsphotographyshootspendsR314000duringitsweek‐longproduction.Thefactorcostsofthevariousgenresofproductionastheyrelatetolocalspendisasfollows:TELEVISIONCOMMERCIALS:ThelargestimpactsofaTVCommercialareCrew,EquipmentandArtDepartment.ThefivelargestexpenditureitemsonaTVCbudgetamountto73.3%ofthetotal.LineItem Budget% AnnualSpend

inW.CapeCrew 26.45% R230,115,000.00Equipment 15.68% R136,416,000.00ArtDepartment 12.48% R108,576,000.00PostProduction 11.03% R95,961,000.00Locations 7.67% R66,729,000.00Talent 6.11% R53,157,000.00VehicleHire 5.70% R49,590,000.00FilmStock 5.67% R49,329,000.00Catering 4.53% R39,411,000.00SetConstruction 2.42% R21,054,000.00Talent 6.11% R53,157,000.00STILLSPHOTOGRAPHICSHOOTS:ThelargestimpactsofaStillsProductionareTalent,CrewandEquipment.Thesethreeitemsamountto56.3%oftheaveragestillsproductionbudget.LineItem Budget% AnnualSpend

inW.CapeTalent 20.7% R136,620,000.00Equipment 16.18% R106,788,000.00Crew 13.6% R89,760,000.00ArtDepartment 6.47% R42,702,000.00Locations 4.85% R32,010,000.00VehicleHire 4.85% R32,010,000.00

SetConstruction 1.62% R10,692,000.00iv) CONTRIBUTIONTOTOURISMINFRASTRUCTURE

Travelandtourismproduct(egflights,accommodation)areperhapsthemostobviousbeneficiariesofthefilmsector.TheCPAreportedanaverageCommercialexpenditureforahotelroomofR701.44pernight.Conservativelyassumingfiveinternationalvisitorspershoot,and3nightsaccommodationtoincorporate1.99dayspercommercial,theCommercialSectorisresponsibleforanestimated10,521bednightsatavalueofR6,312,960onaccommodationintheprovince.SAASPreportedanaverageexpenditureforahotelroomofR723.00pernight.Assuming2internationalclientsperproductionfor7.44nights,thistranslatestoanestimatedR22,592,304onaccommodationintheprovince.AnestimatedcontributiontohotelsintheWesternCapeisthusR28,905,264.00perannum.Pleasealsonote,whenstayingonlocationforaproduction,aProducerprovidescrewwithaperdiemofavariablerate.Thereisalsothelesstangiblebenefitofpotentialfuturetourismactivityastheresultofafilmproduction.StevenR.MillerandAbdulAbdulkadriattheCenterforEconomicAnalysisatMichiganStateUniversity1quoteErnstandYoung’s2009NewMexicoreportthat$2.50isgeneratedinfilmtourismforeverydollarofin‐stateproductionexpenditureandthat1998’sTheAnnalsofTourismResearch,2notedthatlocationswhereasuccessfulfilmhasbeenfilmedgenerallyseea54percentincreaseintourismvisitsoverfouryears.Otherlesstangiblebenefitsincludetheopportunitiesofferedforskillsdevelopmentandeducation,increasedmediainterestgeneratedbyaproduction,theboostitprovidestoculturalprideanditslinkstootherartisticandculturalindustrysectors.

1TheEconomicImpactofMichigan'sMotionPictureProductionIndustryandtheMichiganMotionPictureProductionCredit‐Miller/Abdulkadri(2009)2TheAnnalsofTourismResearch‐Riley/Baker/VanDoren,(1998)

v) ECONOMICMULTIPLIERS/CONTRIBUTIONTOGDPAsnotedbytheAFC3,inmeasuringfilmsectormultipliers,theusualquestionis:“Ifthisfilmprojectinvolvesthespendingof$xmillion,whatwillbethefinalimpactoneconomicactivityandemploymentofthatextraspending.”Nosatisfactorymultiplierhasbeenfoundtobeinternationallyapplicabletothefilmindustry,althoughfiguresaregenerallygivenbetween1.5and2.5.TheSouthAfricanindustrymultiplierisusuallygivenas2.5,althoughtheredoesnotappeartobearecordofhowthisfigurewasoriginallycalculated.TheBoting/StandishreportfortheCFCdeterminedthattheaveragemultipliersforSouthAfricanGDPvaryfrom1.313to1.347.

Using this multiplier, the estimated contribution of Stills and Commercials to SouthAfrican GDP in the 2006 financial year was R2.06 billion. (Long form contribution isR1.49bn)

Thus58%ofthefilmsectorcontributiontoGDPcomesfromtheCommercialandStillsPhotographicsectors.

At the same time the film industry contributed R936m to the Western Cape GrossGeographicProduct(GGP),ofwhichR684miscontributedtotheCapeTownGGP.Theestimate of the contribution to the Western Cape GGP and Cape Town GGP areminimumestimates.

vi) LABOUR

a) JobCreation

TheStrategicEconomicSolutionsreportestimatedthatthefilmindustrycreated6,058full year jobequivalents in theWesternCape;whilea furtherminimum2,501 indirectjobswerealsocreatedintheprovinceasaresultofthemultipliereffect.

Ofthe6,058directjobs,1,841wereinlongform,2,459fromcommercialsand1,758instills.Thus69.6%ofalljobscreatedareintheCommercialsandStillssectors.

3AustralianFilmCommission2006:TheEconomicContributionofaFilmProject:AGuidetoIssuesandPracticeintheUseofMultipliers.

Itisestimatedthatabout4,638(77%)ofthesedirectjobsareinCapeTown.Totaljobsarethesumofthedirectandindirectjobs.Itisestimatedthatintotal8,559fullyearjobequivalentsweresustainedthroughouttheprovince–5957oftheseintheCommercialsandStillssectors.Aminimum6,552areinCapeTown–4560inthecommercials&stillssectors.

Indicator NumberDirectJobs 6058IndirectJobs 2501%Stills/Commercials 69.6%Stills/CommercialsJobs 4217ProvincialFullYearJobEquivalents 8559ProvincialStills/Commercials 5957CapeTownFullYearJobEquivalents

6552

CapeTownStills/Commercials 4560b) PersonDaysJobnumbersarenotoriouslydifficulttocalculateinanindustrythatreliesoncasual/freelancelabourthatisseasonalinstructure.Numbersofpersondaysisanalternative.Theaveragenumberofproductiondaysin2006was1.99dayspercommercial,meaningthatCapeTownhosted1194tvcommercialproductiondays.AccordingtotheCPAreport,theaveragenumberoffreelancecrewforacommercialwas46,suggestingatotalpossibleemploymentof54925persondaysfortheyear.TheSAASP2005/6SurveywasusedtodeterminetheaveragevalueofStillsProductionsasR314000.SAASPestimates7freelancecrewperproductionandanaverageof7.44daysperproduction,indicatinganimpactonCapeTownlabourof109,368persondays. Days Shoots ProductionDaysCommercial 1.99 600 1194Stills 7.44 2100 15624 ProductionDays CrewperDay PersonDaysCommercials 1194 46 54,925Stills 15624 7 109,368

c) Crew&TalentTheCommercialSectorcomprisesofabroadrangeofjobsandskillsthatarespecific(ordirectlytranslatable)tofilmproduction,including:EXECUTIVEPRODUCERPRODUCERCO‐PRODUCERASSOCIATEPRODUCERPRODUCER'SSECRETARYDIRECTOR2NDUNITDIRECTORDIALOGUEDIRECTORDIRECTOR'SSECRETARYCASTACTORSEXTRAS/BACKGROUNDARTISTSSTAND‐INSSTUNTCO‐ORDINATORCHOREOGRAPHERTUTOR/DIALOGUECOACHCASTINGDIRECTORCASTINGSECRETARYCHILDREN'SCO‐ORDINATORGUARDIANPRODUCTIONPRODUCTIONSUPERVISORPRODUCTIONMANAGERASSISTANTPRODUCTIONMANAGERUNITMANAGERLOCATIONMANAGERLOCATIONSCOUT1STASSISTANTDIRECTOR2NDASSISTANTDIRECTOR3RDASSISTANTDIRECTORPRODUCTIONASSISTANTPRODUCTIONTRAINEEPRODUCTIONCO‐ORDINATORPRODUCTIONSECRETARYPRODUCTIONACCOUNTANTBOOKKEEPERLOCALCONTACTTECHNICALADVISORINTERPRETER

SCRIPTSUPERVISOR/CONTINUITYDESIGNPRODUCTIONDESIGNERARTDIRECTOR1STASSISTANTARTDIRECTOR2NDASSISTANTARTDIRECTORPRODUCTIONASSISTANTPRODUCTIONTRAINEEDRAFTERGRAPHICARTISTCONSTRUCTIONCONSTRUCTIONCO‐ORDINATORHEADCARPENTERCARPENTERSCENICPAINTERHEADPAINTERPAINTERSTAND‐BYCARPENTERSTAND‐BYPAINTERSTRIKECREWSETDRESSINGSETDECORATORASSISTANTSETDRESSERSWINGGANGVIDEOTECHNICALCREWTECHNICALSUPERVISORTECHNICALDIRECTORFLOORMANAGERLIGHTINGCONSULTANTLIGHTINGDIRECTORBOARDMANELECTRICIANAUDIOBOOMCAMERAPERSONTONGUEOPERATORDRIVER

VIDEOOPERATORVTROPERATORGRIPSTAGEHANDAUTOCUEOPERATORUTILITYPERSON/GENERALASSISTANTTELEVISIONASSISTANTCAMERADIRECTOROFPHOTOGRAPHYCAMERAOPERATOR1STASSISTANTCAMERAPERSON2NDASSISTANTCAMERAPERSONTRAINEESPECIALEQUIPMENTOPERATORADDITIONALCAMERAOPERATORADDITIONALCAMERA1STASSISTANTADDITIONALCAMERA2NDASSISTANTSTILLPHOTOGRAPHERCAMERASAUDIOFACILITIESVIDEOMACHINESSLOWMOTIONMACHINESSPECIALEQUIPMENTGRAPHICGENERATORVIDEO/TELEPROMPTERSUPPLIESSTEADICAM‐PANAGLIDEGENERATORSELECTRICALGAFFERBESTBOYELECTRICIANRIGGING/STRIKINGGENERATOROPERATOR

GRIPKEYGRIPSECONDGRIPGRIPCRANEGRIPRIGGING/STRIKINGLABORERSTELEPROMPTEROPERATORPRODUCTIONSOUNDMIXER/SOUNDRECORDISTBOOMOPERATORCABLEPERSONPLAYBACKOPERATORPOSTSUPERVISOR/CO‐ORDINATOREDITORASSISTANTEDITORAPPRENTICEEDITORDIALOGUEEDITORSOUNDEFFECTEDITORMUSICEDITORASSISTANTSOUNDEDITORLOOPINGSUPERVISORSTUDIOCONTROLROOM

DIGITAL/OPTICALEFFECTSMACHINESCAMERASVIDEOTAPEMACHINESAUDIOULTIMATTE/IMAGEMATTETELECINEAUTOCUEINTERCOMGRAPHICSGENERATORSPECIALEFFECTSSPECIALEFFECTSSUPERVISORSPECIALEFFECTSASSISTANTSTOCKPROCESSINGPRINTINGFILMTOTAPETRANSFERSTOCKRUSHESSYNCHRONISATIONLABORATORYRAWSTOCKPROCESSINGVIDEOCASSETTES(RUSHES)TAPESELECTIONSPECIALPRINTING

MAGNETICMASTERSTOCK(1/4")MAGNETICTRANSFERSYNCHRONIZATIONEDGECODINGRUSHES/DAILIESSCREENINGCONTINUITY/PRODUCTIONSTILLSEDITINGEDITINGROOMSEDITINGEQUIPMENTPICTUREEDITINGSUPPLIESSOUNDEDITINGSUPPLIESPOSTPRODUCTIONOFFICEEXPENSESPOSTPRODUCTIONLABORATORYORIGINALEFFECTSRECORDINGEFFECTSLIBRARYSUPPLIESSPECIALSOUNDTREATMENTSOUNDTRANSFERSOUNDSLASHES/DUPESPOSTSYNCRECORDING(A.D.R.)

vii) SECTORSUPPLIERSTheCommercialSectorofthefilmindustryhaseconomicimpactacrossarangeofothersectors.SupplierstotheFilmIndustrywhomayearnpartoftheirannualrevenuesfromtheprovisionofgoodsandservicesinclude:PROPSPROPERTYMASTERASSISTANTPROPERTYMASTERPROPERTYBUYERWRANGLINGHEADWRANGLERTRANSPORTATION

CO‐ORDINATORCAPTAINCO‐CAPTAIN/HEADDRIVERDRIVERPRODUCTIONCARSTRUCKS/VANSBUSESMOTORHOMESTALENTCARSSPECIALSUPPORTVEHICLES

PICTUREVEHICLESRENTALSPICTUREVEHICLEPURCHASESPICTUREVEHICLEMODIFICATIONSPICTUREVEHICLEINSURANCE

WARDROBECOSTUMEDESIGNERASSISTANTCOSTUMEDESIGNERHEADWARDROBEASSISTANTWARDROBESEAMSTRESS/TAILORMAKEUP/HAIRMAKEUPARTISTASSISTANTMAKEUPARTISTHAIRSTYLISTHAIRDRESSERASSISTANTHAIRDRESSERSPECIALEFFECTSMAKEUP/HAIRWIGMAKERS/HAIRPIECESMAKEUPRENTALSMAKEUPSUPPLIESHAIRSUPPLIESWIGSSUPPLIESSPECIALEFFECTSPRODUCTIONOFFICEOFFICERENTALSHEAT&LIGHTOFFICEFURNITUREOFFICEEQUIPMENTPHOTOCOPYSTATIONERY/SUPPLIESTELEPHONE/TELEX/POSTAGECOURIERCOMPUTERSERVICESOFFICECRAFTSERVICECLEANINGSECURITYSTUDIO/BACKLOTRENTALSPOWERCARPENTRYSHOPRENTALS

DRESSING/HAIR/MAKEUPROOMSSTUDIOSPECIALEFFECTSEQUIPMENTSITERENTALSPRIVATEHOMERENTALSPRIVATE“STUDIO”RENTALSSITEPOWERCATERINGCRAFTSERVICETABLES/CHAIRS/HALLSGREENROOMFIRSTAIDCREWOUTFITTINGMEDICAL/INSURANCE/VISAPROVISIONPUBLICRELATIONSHOTELSTAXIS/LIMOUSINESEXCESSBAGGAGESHIPPINGCUSTOMS/BROKERAGESERVICESCARPENTRYRENTALSCARPENTRYPURCHASESPAINTINGRENTALSPAINTINGPURCHASESBACKDROPS/MURALSSUPPLIESDRAWINGSUPPLIESDRAWINGEQUIPMENTSTOCKPRINTS/PROCESSINGBLUEPRINTINGGRAPHICS/SIGNS

STUNTSPURCHASES/RENTALSARMAMENTSEQUINEFEED/STABLINGTRANSPORTVETERINARYSERVICESMONITORSDRESSING/MAKEUPROOMSGREENROOMSCARPENTRYSHOPVIDEOREMOTETECHICITIESMOBILEPHONESDIGITAL/OPTICALEFFECTSMACHINESCRANERENTALSSCAFFOLDINGWIRELESSMICROPHONESWALKIE/TALKIESORIGINALEFFECTSRECORDINGEFFECTSLIBRARYSUPPLIESSPECIALSOUNDTREATMENTSOUNDTRANSFERSOUNDSLASHES/DUPESPOSTSYNCRECORDING(A.D.R.)UNITPUBLICITYUNITPUBLICISTPUBLICITY/PRESSEXPENSESPHOTOEQUIPMENTSTILLS/PRINTING/PROCESSINGPROMOTIONWEBDESIGNERS

3. CONSTRAINTSONCOMMERCIAL&STILLSPRODUCTIONINCAPETOWN

i) CONSTRAINTSONCOMMERCIALPRODUCTIONACTIVITYINCAPETOWN

InspiteofthestellareconomiccontributionofStillsandCommercials,theCityofCapeTowncontinuestoconstraintthegrowthanddevelopmentofthesector.Inparticular:• TheCityofCapeTownFilmPermitOfficehasnotbeenfunctioningefficiently;

producershavenocertaintythattheirpermitapplicationshavebeenreceived,logged,actioned,optionedorissued.Thestaffisfrequentlycriticizedforlackingservicevaluesofaccountability,professionalism,integrity,impartiality,transparency,innovationandrespect.NB.WetrustthenewFilmPermitApplicationSystemwillalleviatethisissuesomewhat

• ThenewSystemwillnotsolvetheproblemofCitystaff,linedepartmentsandofficialstreatingfilmproductionasa“nuisance”andanunwelcomeextraburdentotheirday.FilmProductionsofanysizeareessentiallytreatedas“lastpriority”bydepartments.

• CityofCapeTowndepartmentscontinuetomakeunilateraldecisionswithregardtolocationavailability.ThiscauseschaosandheightenstheriskinessofaCapeTownproduction.

• Cityby‐lawsareunfairlyandinequitablyapplied.The“rules”asadheredtobythefilmindustryaredifferenttoallotheractivitiesandeventsinCapeTowni.e.roadclosures,construction,concerts,sportingevents&deliveries.

• TheCitydoesnotlistthelocationsthatareproblemareasand“offlimits”areas–norofferexplanationsoftheunavailability.Withoutthisinformation,productioncompaniesareunabletoplanaheadandfrequentlypresentlocationoptionstotheirclientsthatarenolongeravailable.

• Noworkhasbeendonetobuildorrepairrelationswithlocalcommunities,nortomakeacaseforthefilmindustry;

• Restrictionsonovertimefortrafficofficers(includingretiredofficers)andothercityofficialslimittheviabilityofproduction.

• Therequirementsforconcurrenceand/orconsentbyneighbours&residenceassociationsholdthefilmindustrytoransom.(Certaincouncillorshavebeenknowntoblockfilmingbecausetheirfriends“don’tlikeit.”)

• Therole,function&responsibilityofEnvironmentalControlOfficers(ECO)hasyettobeproperlydefined.Theserolesarethereforeopentoabuse.

ii) PROPOSALSTOALLEVIATECONSTRAINTSONBUSINESSA: CHANGESTODELEGATIONOFAUTHORITYTODECIDEONFILMMATTERS

• RESCINDDELEGATEDAUTHORITYONFILMMATTERS

Authoritytomakedecisionsthataffectfilmindustryactivitiesshouldbeplacedhighwithinthecitystructures–forexamplewithinyouroffice.Delegationofauthorityhasnotworkedwhenpowerhasbeenplacedinthehandsofpeoplewhoarealreadyover‐worked,whodonotseethefilmsectorasapriority(orevenanice‐to‐have)andseenobenefitfrommakinganyeffort.Timeandtimeagaintheyhaveintroducedanti‐filmmanagementprotocolsattheirownwhim,andfranklyrescindingtheirpowertodothisshouldbeapriority.

• CREATELINEDEPARTMENTTEAMCreateinternalteamoflinedepartmentrepresentativestocoordinateandactasgo‐topeopleonallfilmissues.Eachmembertobeavailableoncellphoneandemailoutofofficehours.(seebelowre.overtimeneeds)

• CREATENEWPROCESSFORDEPARTMENTSTOINTRODUCEFILMMANAGEMENTInstead,ifaDepartmentwishestointroducefilmmanagementprotocols,theymustberegisteredtheirproposalwithyouroffice.Viaappropriatechannels,anopportunitymustbegiventotheindustrytocommentonorobjecttotherecommendation–sothatwecanmakesurethedecisionsbeingmadearepracticalandfilm‐friendly.Timeframescanbestrict,sothatreallyproblemareascanbeaddressedquickly.

• CREATENEWPROCESSTOMANAGEINFORMATIONOnceadecisionhasbeenmadetointroduceaparticularsystemorrestrictaccesstoalocation,thisinformationmustbestoredinacentral“BOOKOFDECISIONS”–whichshouldbelogicallycategorisedandavailableontheCFCwebsite.(thiswouldpreventnastysurprises,and

alsopreventtheCTFPOfromthinkingthatonemeetingayearissufficienttocommunicateallthelocationsrestrictions.)

B: CREATEAPPROPRIATEMANAGEMENTPROTOCOLSVIACONSULTATION

• DETERMINESTATUSQUOOFFILMMANAGEMENTPROTOCOLSWithinoneweek,linedepartmentheadstoclarifytherules–asdefinedbytheby‐lawsonly–thataffectfilmintheirrespectivedivisions.Withinoneweek,linedepartmentheadstostipulateinwritingthestatusofareaswithintheirjurisdiction–greenforgood,orangefordifficult,redforoutofbounds.Thesearenotdefinitive,butwillbethestartingpointfordiscussion.

• WITHDRAWALOFTHERIGHTOFDEPARTMENTSTOMAKEUPTHEIROWNRULESI.R.OFILMSECTORCancelallfilmmanagementprotocolsthathavebeenintroducedbylinedepartmentsthatarenotcoveredbyby‐lawswithimmediateeffect.Allotherrules–threecars,threestillsshootsonbeachesetc.–tofallawayimmediately.Allrulesthatareappliedtothefilmsectorprejudicially(eg.Specialpermits/reccesforAtlantisDunes)tofallawayimmediately.LettertotheLineDepartmentsnotifyingthemthattheymaynotunilaterallyrestrictfilmactivityorbanfilmingintheirjurisdictions.

• NEIGHBOURHOODNOTIFICATIONSRemoveallofficialrequirementsforfilmproductionstonotifyneighbours.Iftheproductionanditsparkingislegalandnoaccessesareblocked,itisno‐one’sbusinessbutthehomeownerastowhattheydoontheirproperty.Furthermore,sincetheaverageTVcommercialshootlasts1.99days,itisimpossiblefortheProductionCompanytoknowhowoftenapropertyhasbeenusedforevents,parties,othershootsetc.Neighbourhoodnotificationshouldthereforebetheresponsibilityofthehomeowner,whichthefilmproducerhandlesonthehomeownersbehalf.

• PLANCONSULTATIVEWORKSHOPTOINTRODUCENEW,IMPROVED

MANAGEMENTWorkshopameetingwiththeheadsofalllinedepartmentsandtheiroperativeswiththefilmindustryLocationsCommitteetodeterminemoreappropriateprotocols.

• MANAGEOVERTIME

PursueLegal/HRrequirementstoamendovertimerestrictionssothattheCity’sdepartmentsreflectindustryoperatingnorms.

C: PUBLICSTATEMENTOFFILMFRIENDLINESS

• CREATEUNEQUIVOCALPOSITIONSTATEMENTONFILM‐FRIENDLINESS

Withinnextmonth,theMayor/Premiertoissuestatementsonfilm‐friendlinesstargetedtowardsdifferentstakeholdergroups:Communities/Residents,Business,CouncilWorkers,etc.ThestatementtounequivocallynotetheCity’srecognitionoftheindustryasakeystrategicgrowthsector,andtheneedtocreateadditionallocationcapacity.Importantly,thestatementtobebackedbyaction.

• AGGRESSIVELOCALPRWithinnextthreemonths,TheCapeFilmCommissiontocreateandimplementacomprehensivemarketing&publicrelationsplantocommunicatethecity’spositiontotheresidents,andideallytocreateplatformsofdialogue.

• CONTROLTHECOUNCILLORSAllWardCouncillorstobeinstructedthattheydonothaveauthorityoverprivatebusinessesandthattheircommentsmaybeconsideredonlyasrecommendationsratherthanlaw.

• IMPROVECHANNELINGOFFEESTOAFFECTEDCOMMUNITIESSeekimmediatelegalinputoncreationofamechanismwherebyafeeischargedandpaidtoatrust,whichcanthenbedistributedtoareasmostaffectedbyfilm.The“noringfencing”ruleissomethingthefilmindustryobjectstoasmuchasthepublic.

D: UPGRADEFILMOFFICE

• SCRAP“EACHPERMITWILLBEJUDGEDONMERIT”Eachproductionthatappliesforapermithasalreadyhaditsmeritdeterminedbyafunderwhowishestopayforthatproductiontobecompleted.Theissuethereforeisnot“merit”butwhetherthecitycanaccommodatetheshoot.TheonusshouldthereforebeontheCitytoprovewhyashootshouldnottakeplace,ratherthantheproductioncompanyhavingtoarguewhyitshould.ThisistheprocessinNewMexicoforinstance,wherelinedepartmentshave24hourstoobject,otherwisethepermitisissued.

• IMPROVEOPERATINGENVIRONMENT

Introduceemailsforfilmofficestaffwithimmediateeffect.

Adopttheuseofasinglemapbookforbookingcross‐reference.Justpickone,anyone,andthenuseit.RequestGPScoordinatesonpermitapplications.Justaboutanycellphonewillallowuserstogivethis.

• PROVIDETRAININGNotonlyinpermitissuanceprocessesbutinproblemsolving,customerservice,ergonomicmanagement,timemanagement,crossculturalsensitivityetc.

• INSTRUCTCAPEFILMCOMMISSIONTOHIRELOCATIONCONSULTANT

ProvidewrittenpermissiontotheCFCtouseresourcestohireaprofessionallocationsconsultantfromtheindustry

E: BLANKETPERMITFORMICROSHOOTS

• ALLEVIATEPERMITOFFICEBOTTLENECKSTHROUGHINTRODUCTIONOFBLANKETMICROSHOOTPERMITSPermitsformicroshootsonaper‐jobratherthanper‐locationbasis.CultureofCTFPO/Citytomovefrom“Permission”baseddecisionsto“Notification”basedsupport.(seeAnnexureAforproposedstructure.)

F: ENVIRONMENTALCONTROLOFFICERS

• CLARIFYREQUIREMENTSWithinoneweek,demandthataffecteddepartmentsclarifywhatqualifications/experience/requirementstheyexpectofEnvironmentalControlOfficers.Withinoneweek,departmentstoalsoclarifywhichlocationsrequireECOs,orwhichfilmingcircumstances.HoldameetingbetweenLineDepartments,Locations,ECOAgenciesandtheIndustry’sLocationsCommitteetoagreeonthesuitabilityoftheCity’sproposals.

AnnexureA:ProposedProcessforManagementofMicroshootPermitsinCapeTownRationale

• Anestimated70%ofpermitapplicationsareformicroshoots.• Microshootsoperateassmall,selfcontainedteamsof10people

travellinginaminibusandasmall,1‐tonpanelvanforequipment.• Theirimpactsaresimilartothoseofnewscrews.• Thetypicalstillsmicroshootrunsover8daysandutilisesarange

oflocations,bothprivateandpublic.• Producerstypicallyidentifytherangeoflocationstheyrequirein

advance,andthenapplyforpermitstoguaranteeaccesstothoselocations.

• However,thekeytodeliveryofasuccessfulmicroshootisflexibility;producersneedtobeabletoswitchlocationsondemand‐generallyduetoweatherchanges(whichincludeschangesinwinddirection)

• Atpresent,thiscoreelementofflexibilityisconstrainedbytheCTFPOpermitprocessformicroshoots,whichdemandseachlocationbepre‐bookedaminimumof24hoursinadvance.

• Unfortunately,theCTFPOdoesnothavethecapacitytoadministratethelevelsofflexibilitythatmicroshootsdemand.

• Inspiteofthis,theCityofCapeTownhasclungtothisoutdated“permissions”procedureduetothedemandsof‘governance’.

• SAASParguesthatamoreflexible,innovativeprocessformanagingmicro‐shoots–vianotificationratherthanpermissions‐couldbeintroducedtoimproveStillsOperationandstillretainthegovernance,diligenceandreportingrequiredbytheCity.

ProposalSAASPproposesthefollowing:

• availableONLYformicro‐shoots–amaximumof10peopletravellinginaminibusandasmall,1‐tonpanelvanforequipment.

• ANYLARGERNUMBEROFPEOPLEORVEHICHLESMUSTAPPLYFORADAILYPERMITASNORMAL

• ANYSPECIFICREQUESTEDLOCATIONMUSTAPPLYFORADAILYPERMITASNORMAL

• AllmicroshootsmustapplyforaPERMITPERJOB,notingthedays

onset,andtheproposedrangeoflocations.(thisgivestheCTFPOtheopportunitytoflaganyconflicts)