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The Future of (NZ) Film

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When Bob Iger of Disney speaks about the future of film, it’s worth listening.

Why?

Because amongst the hundreds of companies that sit under the Disney umbrella are 20th Century Fox, Lucas Film, Marvel, and Pixar. Brands number in the thousands and include through whole or partial ownership indie darling Fox Searchlight, streamer Hulu, and networks ABC, ESPN, FX, National Geographic and A & E.

Of course Disney doesn’t own everything. There are other conglomerates out there, the likes of Amazon, Apple, Comcast, and TimeWarner who are shaping the screen content world we are in now. But Iger demands everyone’s attention.

So this month at Disney’s third quarter earnings announcement when Iger essentially declared that big movies belong in theatres, and everything else will go to its streamers Hulu and the soon-to-launch-globally Disney+, everyone sat up.

Reporting on this, Journalists Dana Harris and Chris Lindahl in Indiewire wrote that “The very, very top films with awards potential will see generous theatrical offers and bidding wars that price out all but the deepest pockets. The highest-quality films with no clear awards play will also see strong offers and bidding wars, but from streamers, and considerably less generous offers from independent theatrical distributors. For everyone else, it looks like a struggle — although they could also benefit from the streamers’ ongoing arms race to acquire the content mass necessary to achieve market dominance.”

So where does that leave us in New Zealand with our 10 or so narrative and documentary features a year? Blissfully unaware some say.

A recent article in The Hollywood Reporter gives some indication that even the top names in film can see the writing on the wall. Directors including Martin Scorsese and Christopher Nolan amongst others were behind the Ultra High Definition Alliance’s announced introduction of a “Filmmaker Mode” TV setting. Director Ryan Coogler essentially admitted the fate of film by saying, “I care deeply about how cinema is experienced at home because that’s where it lives the longest. That’s where cinema is watched and re-watched and experienced by families. By allowing the artists in the tent to help consult and give feedback to the electronics companies on Filmmaker Mode, we can collectively help make the consumer’s experience even more like it is in the cinema.”

Of course the name directors will still get their films into theatres—witness the Netflix launch of Scorsese’s The Irishman, Alfonso Cuaron’s Roma, and Amazon’s commitment to theatrical release for the auteur directors it backs. But for the rest of us? We might have to get used to premieres in Filmmaker Mode unless you can get your films into festivals.

Once streamers Netflix, Disney+, Apple TV+, Amazon Prime and WarnerMedia are in full swing here, perhaps NZFC might even relax its demand that you have to have NZ theatrical release to get production funding.

 

Tui Ruwhiu
Executive Director

Where to From Here?

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The Screen Sector Strategy has announced the dates of its intended hui in 3 locales to gather industry input into a strategy document for the New Zealand Screen Industry. This will be taken to Government in the first half of 2020.

This is an important opportunity for every individual to give their ten cents worth on how they would like to see the direction of the screen industry go.

The DEGNZ board has put together a list of questions for members to help stimulate your ideas. You can find the Guild questionnaire available here to download. Please do send your responses back to us at admin@degnz.co.nz with ‘Questionnaire’ in the subject line.

Below are some recent developments that could contribute to your thinking.

The Spinoff reported in an article on Saturday that for the foreseeable future, TVNZ will not report a dividend to government—essentially, TVNZ’s profitability is way down and is likely to remain so. The impact of Google and Facebook on onscreen advertising revenues is a major factor in this, as well as the advent of Subscription Video on Demand (SVOD) services such as Netflix and the fragmentation of the media market.

In the same article, The Spinoff reported an unprecedented call-out by NZ On Air to all the major news providers to attend a meeting to discuss the long term sustainability of journalism.

Across the ditch in Australia, the Australian Competition and Consumer Commission’s Final Report into Digital Platforms addresses this topic amongst others. Key findings include:

  • The availability of a wide range of high-quality news and journalism provides significant benefits to Australian society and is important for the healthy functioning of democracy.
  • News and journalism risk under-provision for a number of reasons, including the general inability of commercial news media businesses to capture the broader social benefits of journalism.
  • Media businesses, particularly traditional print (now print/online) publishers, have experienced a significant fall in advertising revenue as advertisers follow audiences who have migrated online to access news and other content. This has coincided with strong growth in online advertising, which now accounts for half of all advertising expenditure. Google and Facebook together account for nearly two-thirds of online advertising expenditure.

These aren’t earth-shattering revelations, but clearly highlight the fundamentals of what we all are wrestling with and that are driving TVNZ, Mediaworks, Fairfax, and NZME amongst others to the wall.

The Australians have also called for a levy on streamers to fund local content, the need to maintain broadcast TV quotas, and an end to cuts for screen funding bodies and public broadcasters as previously written about in the Guild blog here.

Funding cuts have impacted heavily on Screen Australia and the Australian Broadcasting Corporation. In New Zealand in comparison, our funding bodies (NZFC, NZ On Air) have had relatively static funding for years, with more and more calls upon it.

As many of you will now be aware, there is international production work to be shot in New Zealand coming out of our ears. We are already seeing a shortage of experienced personnel and crew rates and other production costs are rising while New Zealand budgets stay the same. The question of how local production can survive and thrive in the face of the onslaught of offshore work arriving is vexing a number of us.

We are at a crucial time for both the local and international screen industries. There are seismic shifts still to come as Disney, WarnerMedia, Apple and other streaming services come online and continue to shake broadcast and theatrical to their foundations.

The Screen Sector Strategy work now underway needs to be completed quickly and effectively if we are to have a sustainable industry in New Zealand that benefits from international production and contributes to the development of local screen content and Kiwi screen IP.

Please share your thoughts on where to from here with us at the Guild, at the Screen Sector Strategy hui and with submissions, so that a well thought out strategy is distilled that will work for us all.

Tui Ruwhiu
Executive Director