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Hello 2018!

We’re into the year and we’ve got a significant period of change coming.

The Government’s first hundred days are up in two weeks and it has already made good progress or is about to in terms of tertiary education, housing, child poverty, mental health and other social issues. Yet, it’s in the area of workplace relations that progress had been slow, and understandably so because the shift will be significant. However, today the Government announced a slew of employment law changes in favour of workers. Labour’s Fair Pay Agreements, which are still to come are potentially contentious with a fear that they’ll bring strikes and economic decline. Labour’s adamant they won’t.

In regard to the screen sector, following the attention-grabbing announcement that the Hobbit Law would be repealed, the government scrambled quickly to assure everyone that it did not want to affect attraction of international production to New Zealand. Workplace Relations Minister Iain Lees-Galloway announced the formation of a working group to consider options for replacing the legislation. The Film Industry Working Group will meet shortly and DEGNZ is a member. So for the moment,  film workers will not be able to collectively bargain, although the government fully intends for those workers to have that right.

Clare Curran confirmed at NZ On Air’s year-end celebration in December that Radio NZ will get a significant funding increase of around $20 – 30 million, and that NZ On Air and a new overarching public media funding commission would share the remainder of the $38 million fund, intended primarily for news and current affairs programming. This should start to flow this year.

The commitment has drawn the ire of Mediaworks CEO Ian Anderson, who complains it will weaken media diversity and hasten the end of Free To Air TV. Instead he suggests, turn TV1 into a true public broadcaster—Talk about flogging a dead horse. He also suggests that TVNZ has the TV business talent that Radio NZ does not. Many in the industry would think that puts Radio NZ in a good place not a bad one. And try telling that to former Maori Television CFO Alan Witherington and former MTS Head of Programming, and TV news and current affairs producer Carol Hirshfeld, both of who hold top management jobs at Radio NZ.

There’s been no mention of any additional funding for the New Zealand Film Commission, but we have to hope that NZFC would have put in a bid for additional funds for 2018/2019. The $13 million NZFC has to fund local production for 2017/2018 and the annual $16 million in Screen Production Grant funding for NZ films for the next four years won’t go far.

A major change at NZFC in 2018 is new CEO Annabelle Sheehan. An educator and bureaucrat with a production background, Sheehan can be expected to bring a different approach to the way the organisation operates from her predecessor producer Dave Gibson. As former head of the highly regarded Australian Film, TV and Radio School (AFTRS), we can expect she’ll have strong opinions on talent development. She will still though be reporting to the National Government-appointed NZFC board, and they were after all the ones she had to convince to get the job. We can expect Labour’s hand will come into play as board members on both NZFC’s and NZ ON Air’s boards reach their ends of terms and new appointments are made.

One of the big shifts at NZ On Air will happen in February or March when they announce their new drama strategy. After the incredible noise generated around the Filthy Rich and Dirty Laundry funding, primarily by Duncan Grieve, and the constant chatter around digital funding and the lack of support of emerging content makers, again very attributable to Mr Grieve, NZ On Air went into a major reassessment of scripted programming. No doubt the cracks that opened will widen. Interesting to note another change in Grieve stepping down as editor of Spinoff to focus on managing the company’s business, which includes two new TV shows.

On the international scene it’s a bloodbath. We are effectively saying goodbye to Hollywood studios and hello to high-tech companies. Once all the mergers and acquisitions are done, it’s likely Disney, who recently acquired Fox from Rupert Murdoch, will be the only one left standing and it’ll be competing with Netflix, Amazon, Apple, and Google/YouTube. China funding in the US entertainment industry has dried up but the massive players in the Chinese online space are surging. Get used to saying Baidu, Tencent, iQiyi, Youku, Tudou and Sohu. News out of Sundance so far sees only one major acquisition going to new players Neon and AGBO, with a US$10 million spend to acquire all rights for Assasination Nation. Netflix and Amazon have yet to acquire anything.

It’s not looking any prettier for NZ film. The arthouse market where NZ film sits has dried up except for Europe, and its even tough there. Amazon was shedding a ray of light for independent film, particularly US indies, because of Ted Hope, who is a major supporter of auteur filmmaking. But online media intelligence site FilmTake has just reported that Amazon is moving away from small indies and into the $50 million budget space. And Netflix is supposedly proving a harder door to open now that it’s well established with a solid roster of content suppliers it already has relationships with.

On the domestic front it’s hard not conclude that the Australasian distribution system for NZ film is broken. Sure Wilderpeople and some of the more popular docos are still getting over the $1 million mark and small films like the recent Waru are punching well above their budget weight, but if you’re not making overtly commercial films you’re chucked out in two weeks to make way for the next Hollywood blockbuster, so there’s no chance for word of mouth to build up and grow an audience. That is if you can get theatrical distribution in the first place. This is a problem that needs to be addressed. Catering to niche audiences with good light entertainment as the Three Wise Cousins team is doing with their latest self-funded romcom Hibiscus & Ruthless is one model for the way forward.

On the guild front things are a little steadier. We have a lot of big picture work in front of us with the Film Industry Working Group, Copyright and the Code of Ethics to focus on. With professional development we will be running a full programme of training workshops for directors and editors, introducing a drama editor attachment scheme to complement the TV drama director attachment initiative we will do again this year, and putting one more intake through the Emerging Women Filmmakers Incubator. We are also planning further events specifically targeted at young creators. To round things off we’ll have our regular networking events where you can hear speakers and connect with like-minded screen industry professionals.

DEGNZ is here to work on your behalves, so make yourselves known to us whether it’s for assistance or just to say hello. We appreciate your support both through membership and patronage at our events and look forward to connecting with you in 2018.

Finally our thanks go out to the New Zealand Film Commission, NZ On Air, Vista Foundation and our other supporters Dominion Law, Resene, Seresin Wines, Pieter Holl & Associates, Event Cinemas, Reading Cinemas, Rialto Cinemas and Hoyts who support us in supporting you.

Tui Ruwhiu
Executive Director