Venezuela has the largest proven oil reserves in the world. It was once so rich that Concorde used to fly from Caracas to Paris. But in the last three years its economy has collapsed. Hunger has gripped the nation for years. Now, it’s killing people and animals that are dying of starvation. The Venezuelan government knows, but won’t admit it!!! Four in five Venezuelans live in poverty. People queue for hours to buy food. Much of the time they go without. People are also dying from a lack of medicines. Inflation is at 82,766% and there are warnings it could exceed one million per cent by the end of this year. Venezuelans are trying to get out. The UN says 2.3 million people have fled the country - 7% of the population.

Saturday, August 27, 2011

New York SAG Election Becoming a Tinderbox (Analysis)

Tom Hanks and Alec Baldwin endorse USAN, while OSU issues a bill of particulars and personal attacks fly in all directions. With both factions pro-merger, members wonder why they're fighting.

United Screen Actors Nationwide, the group that has controlled the New York SAG boardroom for a number of years, announced endorsements Wednesday from Tom Hanks and Alec Baldwin.

The move came a half-day after One.Strong.Union, the breakaway SAG group challenging USAN in the guild's New York elections, issued a detailed statement accusing USAN of incompetence, indifference, conflict of interest and exclusionary practices.

In response, USAN provided THR with a statement from SAG board member Nancy Giles, a USAN member, which said in part "Campaigning is a lot easier if you are willing to simply lie outright about your opponents."

Some SAG members assert that the two groups are simply pre-positioning themselves for power in a single, post-merger union. On that subject, OSU candidate and incumbent New York board member Justin Barrett told THR, "When it comes to positions in the new union? That's the sort of thing USAN folks worry about."

In other words, it's getting personal.
Very personal, in fact: Barrett was previously a "USAN folk" himself. Indeed, OSU's slate is comprised of five formerly-USAN incumbents (and five newcomers), headed by Sam Robards, who is running for New York board president against USAN incumbent Mike Hodge.

Another of the group's key organizers is board member Sue-Anne Morrow, also formerly aligned with USAN. It's essentially an internecine split within what was previously a tightly unified group.
Both factions describe themselves as favoring merger between SAG and AFTRA, but the OSU statement raises objections to USAN's approach to that issue and such other matters as new media, videogame work, the pension and health plans, and inclusiveness.
Meanwhile, as USAN's announcement Wednesday reflects, endorsements have become a key part in the race. With about 30,000 SAG members in New York and a typical voting rate of about 20% - 25%, every vote counts.

In his endorsement statement, Hanks said, "I support the people who have guided SAG during these last months of huge changes in our art and industry. USAN has been vital in leadership positions and has worked ceaselessly to bring SAG and AFTRA together."
Baldwin stated, "I strongly endorse the direction the union is going in now and I encourage all NY SAG members to continue to support USAN."

USAN also pointed to support from such other noted actors as Melissa Leo and S. Epatha Merkerson, as well as Lewis Black, who is running on USAN's slate, and SAG's national, Hollywood-based leaders including president Ken Howard and secretary-treasurer Amy Aquino.
OSU has previously showcased its support from Holter Graham, president of AFTRA's New York Local (who made the endorsement in his individual capacity) and a host of others listed on its website. Its latest statement marks the first time the group has explained its objections and objectives in detail.

The statement lays out a range of issues:
• Merger. OSU describes USAN's position as "any merger will do," while saying that OSU will not "take merger for granted" nor allow it "to fail because of tunnel vision, a lack of due diligence, or personal agenda."

Similarly, OSU's Robards said in an email Monday, "I am 100% committed to merger for all members of both unions. But after hearing some of the language coming from New York SAG Board leaders, I had grave concerns about whether this merger would succeed. I believe our members deserve something better than the `any merger' USAN might be willing to accept."
USAN's Giles responded angrily, "`Any merger will do?' Really? That must be why USAN leaders spent months hearing from members in listening tour meetings throughout the country, and why they are engaged – right now – in an exhaustive process to get every detail right."
The merger plan is still being worked on by a joint SAG/AFTRA group, called G1. The plan is expected to be presented to the unions' national boards in January.

• Videogames. The OSU statement charges that "the USAN Candidate who was the NY chair of the last Interactive Negotiations botched the negotiation of this contract, causing SAG to completely lose jurisdiction in this growing field." The statement then describes videogames as a $70 billion business, and asks "what's 1% of $70 billion?"
The significance of those numbers is unclear. In a statement to THR, OSU cited a New York Times report of a Gartner study for the $70 billion figure. However, the figure includes hardware as well as games themselves, and appears to be worldwide. (Reuters quotes DFC Intelligence as forecasting the 2011 worldwide market for videogame hardware and software at $65 billion.) Domestically, games alone generated about $16 billion in retail sales in 2010, according to NPD Group data.

Part of that sum is retained by the retailer. Game publishers receive a lesser, unknown portion, out of which they pay programmers, designers, writers, actors and others.
The source of the 1% figure is also unclear.
In any case, SAG's data shows that its members' revenue under the guild's interactive agreement ranged from $5 million to $6 million mid-decade, then dropped to $3.1m to $3.5m, and slid most recently to $2.4m in 2010, a $1.1m decline from the year before.
That $2.4m figure is about one-tenth of one percent (0.1%) of SAG members' total reported earnings last year, which amounted to almost $2 billion. Even the industrial/educational contract is five times larger than the interactive deal.
SAG lost jurisdiction over interactive work in 2009 when members voted to reject a contract with the videogame industry. Only 115 members voted, since the voting was held via in-person meetings open only to members who had worked under the contract. SAGWatch reported at the time that the vote was unanimous in favor outside of Los Angeles, but the contract failed 42 to 73 overall, due to opposition in the guild's Hollywood Division.
AFTRA, in contrast, ratified an agreement that year, as well as a renewal last month. But even before the SAG action in 2009, total union coverage (SAG plus AFTRA) was estimated to account for only 20% of videogame acting work.
An OSU spokesperson told THR, "The USAN-NY chair was unimpressive . . . he never took a strong position on the contract he was responsible for negotiating and openly and repeatedly dismissed the value of the contract. No jurisdiction, especially jurisdiction over an exploding area of the industry, should be squandered."

• New Media. The OSU statement characterizes USAN's position on new media as "it's not that important" and says that a USAN leader (not named) "insisted that the only priority (in the 2010 studio contract negotiations) was increasing Pension & Health contributions from employers."
OSU emphasizes the growing importance of new media and argues that, for instance, the "free streaming windows" for ad-supported streaming of television shows should be shortened. "In other words," says the statement, "twenty-eight days of free usage for Lost is just too much."
That's apparently a reference to the new media residuals formula that provides for a non-residual bearing window of 17 days, or 24 days for episodes in a series' first season (or one-shot programs such a TV movies). It's unclear where OSU's 28 day figure comes from.
In his email earlier this week, OSU's Robards charged, "There was no effort to reduce streaming windows; no serious consideration given to alternate models for residuals payments, such as percentage-based residuals." He added, "I do not believe these concerns have been taken seriously by USAN leadership."
SAG and AFTRA did obtain a slight improvement in a different aspect of new media, managing to narrow the definition of experimental new projects, which are essentially outside the unions' jurisdiction.
It's not known whether SAG/AFTRA negotiators sought other new media improvements, though it seems likely that they did. How hard they pressed these issues, and whether they could have or should have held out for more, is something that members debate.

• Pension and Health Plan. The OSU statement says that USAN elected one of its leaders as a trustee of the guild's Pension and Health Plans despite the fact that his spouse was already a trustee. "While both are qualified to serve," the statement says, "a married couple serving simultaneously presents conflicted interest, inhibits debate, and unfairly limits New York representation."
Although not named in the statement, the trustee is understood to be board member and former SAG national president Richard Masur, whose wife, Eileen Henry, is also a trustee.
According to OSU, the New York Division is allotted four seats on the P&H board, which makes it understandable that the group would claim that the appointment of an existing trustee's spouse inhibits debate and limits representation.
What's less clear is how the move "presents conflicted interest," let alone what OSU headlines as an "UNPRECEDENTED CONFLICT OF INTEREST."
In response to a THR question, OSU candidate and incumbent New York board member Andrew Dolan responded, "A conflict of interest lies is having two interests present at one time – no trustee should be wondering how their position on a difficult P&H issue might affect their relationship. And no member should wonder where their trustee's loyalties lie."

• Inclusion. OSU asserts that board members who voted against the P&H trustee's appointment "were subsequently marginalized by the USAN-led board, and kept from serving on committees for which they were qualified." The group also opposes the New York Division's use of a nominating committee to recommend candidates for election to board seats – a system which OSU labels "flawed (and) self-serving . . . promoting entrenchment, not accountability."
The group promises that "unhealthy practices (will) not find their way into the new union." It also criticizes USAN alleged support for a rule change that "(now allows) national board members to resign and choose as their permanent replacement anyone from their division's membership, bypassing the large pool of member-elected alternates."
OSU charges that this rule "promotes institutionalized cronyism."
USAN leader Hodge sees things differently. "What's happening here is that a group of board members are upset that some votes didn't go their way," he said in an email to THR. "Each board member is free – I would say obligated – to vote his or her conscience and the best ideas win majority support," he added.
Robards says otherwise. "When I joined the New York board there was a lot of talk about `voting your conscience,'" he said. "The reality was something quite different. USAN representatives seem to enter every discussion with a predetermined agenda and an entrenched and immovable perspective. There is no possibility of changing minds or seeking out better solutions."
OSU's Joe Narciso added, "if you read our candidate statements and other writings it's clear our concerns are a whole lot bigger than just a few votes."
Hodge counters that the proof is in the pudding. "Our discussions in the New York Boardroom have produced terrific results," he told THR, "and I stand behind them. More important, the members support the direction we've taken. I'm sorry Sam Robards disagrees."

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UTA Opening New York Office...

The agency's co-head of television talent, Nancy Gates, will work out of the new outpost.
UTA is opening a New York office. It is slated to open in November at 888 Seventh Ave., just south of Central Park. Nancy Gates, co-head of the agency's television talent department will work out of the new outpost. Gates has been based in Los Angeles, working out of UTA's Beverly Hills headquarters.

The size of the office is not known. Gates will be joined in New York by alternative television agent Alison Wallach and talent agent Steven Fisher, who recently left ICM for UTA. The office is also expected to be staffed with new agent hires.

The agency's lack of a New York outpost has made it somewhat of an anomaly. Many agencies, including CAA, WME, ICM, Gersh, APA and Paradigm, maintain offices there.

However, the agency does already have a presence in Manhattan. In 2007, UTA partnered with marketing executive Jarrod Moses to open a branded entertainment firm, United Entertainment Group, which operates separately from the talent agency and is based in New York.
UTA has inked a lease for the new office space, which is currently under construction. The 46-story Seventh Avenue tower is near 57th Street. In addition to film and television, UTA plans to expand its theater, digital media and corporate consulting practices into New York.
UTA is also said to be considering leaving its Wilshire Boulevard digs for new headquarters space. In March, THR reported that the agency had toured the Cesar Pelli-designed, soon-to-be-completed Red Building at the Pacific Design Center in West Hollywood, and was considering a move there. But no deal has been inked.

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Incentives Update... August

Although many states have curtailed or terminated their incentives programs, others have expanded or enhanced their programs. There is still a substantial amount of money available - to find it:

THE INCENTIVES OFFICE TELLS YOU WHERE TO GO...

Alabama - $6 million available now, with new funds will be available on October 1st. $10 million annual cap.

Alaska - $50 million is available. Alaska has no caps on talent or projects, but requires a CPA audit to sell their 30-44% credits.

Colorado - $500,000 remains for their 10% rebate.

Connecticut - no annual cap. Regulations have tightened up for this (up to) 30% transferable credit.

Florida - (film only - see below for television). Only Florida resident cast and crew qualify, plus FL goods and services.

Georgia - 20% transferable credit, plus 10% uplift for logo (totaling 30%), requires audit/tax return. New sound stages, lots of post facilities. No annual ceiling.

Hawaii - refundable credit of 15% to 20%, requires a tax return. No annual cap.

Illinois - only resident cast and crew qualify, but Chicago is a major production center. Transferable credit of 30%. $100,000 per hire cap, but no annual ceiling.

Indiana - $2.5 million remains for the remainder of this calendar year.

Louisiana - top choice of producers, transferable credit of 30%, plus 5% bump for resident labor. The state redeems credits at 85 cents after CPA audit, or they can be sold (brokered). Many films now in prep or pre-production, so crew is getting strained. No annual ceiling, and three great stages.

Massachusetts - 25% transferable credit; state redeems at 90 cents. No caps or ceiling, and the credits are easy to sell after CPA audit.

Mississippi - a rebate of 25% for materials and non-resident crew, 30% for resident crew, $1M per hire cap. "The Help" was shot in Mississippi. Not a lot of crew depth, but growing. New sound stage in Canton. Costs are low, and the state is eager for production. $18 million is available.

Montana - refundable credit of 9% to 14%. No annual cap.

New Jersey - $14 million available, but half of this will be gone very soon, as earlier shows complete their submissions. 20% transferable credit, sellable after the CPA audit.

New Mexico - annual allocation is $50 million, for this 25% refundable credit which requires a NM tax return. First come, first served; if funds not available when you apply, you wait a year. Depending on total amount, credits awarded over 1, 2 or 3 years.

New York - fiscal year started July 1st, so new funds are available. Below-the-line credit of 30%, payable over 1-3 years with filing of NY state tax returns.

North Carolina - refundable credit of 25%, $1M per hire cap, and project cap of $7.5M. NC requires a tax return. No annual ceiling.

Pennsylvania - Some funds remain, but not for long. However, applications are stil being accepted, as films may drop out of the queue, freeing up funds for new projects.

South Carolina - $14 million currently available for their 10% to 30% rebate.

Texas - The incentive has now been raised to 15% for video game production. The previous rate was 5%. Only Texas resident cast and crew qualify, plus TX goods and services.

Utah - $11 million of fully refundable credits at 25% (with tax return), $3 million for 25% cash rebates (up to $500,000 per project).

West Virginia - $10 million annual cap, $10 million available. 27-31% credits.

AND WHERE NOT TO GO (FOR NOW)

Arizona - program was allowed to sunset, new legislation was defeated.

Florida(television only) - funds for the TV queue are exhausted, and without new legislation, new application will not be accepted.

Missouri - the film commission was not funded.

Idaho - program is not funded.

Iowa - program has been terminated.

Ohio - all funds gone until next fiscal year. Applications are being accepted in case something drops out of the queue

Oklahoma - no funds available until fiscal 2013, which starts July 1, 2012. Applications will be accepted beginning January 1, 2012.

Oregon - a good program, but they are out of funds until July 1, 2012.

Washington - program was allowed to sunset.

Wisconsin - allocation of $500,000 per year.

OTHER LOCATIONS TO CONSIDER

California - all funds allocated. Applications will be accepted starting June 1, 2012, for the next fiscal year, which starts July 1, 2012.

Michigan - Funds currently exhausted, but $25 million via a grant becomes available October 1, 2011. $2M cap per hire, and qualifying rates vary from 30-42%.

Minnesota - $1 million has been allocated; please contact the commissioner for details. Rules and requirements will change - no additional information is available.
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Friday, August 26, 2011

Awesome Guerrilla Ads









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Monday, August 22, 2011

Satcaster's deals with the six majors means rival subscription services are failing to compete.

LONDON – U.K. satcaster BSkyB is facing a call to loosen its pay-TV grip on films made by the Hollywood majors following an investigation by the Competition Commission here.

BSkyB agrees to deal with pay TV rivals
British Prime Minister Denies Involvement in News Corp.'s BSkyB Bid
The Commission said Friday BSkyB's deals for the first subscription pay-TV window with "the six major Hollywood studios" means other competitors, such as BT and Virgin Media, cannot compete for rights properly.

The industry watchdog noted that while BSkyB does supply its movie channels to "some other pay-TV retailers," it found that that "has not these retailers to compete effectively with Sky for movie channel subscribers."

"Due to the importance of being able to see recent movies to many pay-TV subscribers, Sky's control over the FSPTW movie rights of the major studios, and therefore over the movie channels incorporating this content, contributes to a lack of effective competition in the overall pay-TV retail market," the Competition Commission's report states.
BSkyB's deals for the first pay window means the satellite provider enjoys exclusivity on an array of high profile Hollywood fair for 15 months. It means output from Universal, Walt Disney, 20th Century Fox, Paramount, Dreamworks and Warner Brothers are on Sky first in the pay-TV window.

Upcoming high profile films to be offered exclusively on Sky include Tron Legacy, Shrek Forever After and Sex and the City 2.
The Competition Commission has invited industry and public reaction to a series of recommendations to help loosen Sky's grip on the market.
The first recommendation is to restrict Sky from signing exclusive deals with the six majors in the first subscription pay television window.
Loosening the grip would mean rival operators could buy the rights to other distribution methods, including video on demand.

"Sky has had control of recent movie content on pay TV for many years. At the heart of the problem is Sky's strong position in the pay-TV market, with twice as many subscribers to pay TV as all other traditional pay-TV retailers put together. This provides Sky with a great advantage when it comes to bidding for movie rights, which no rival bidder has yet been able to overcome – and, if things stay as they are, we see no likely prospect of change," Competition Commission movies on pay-TV investigation chairperson Laura Carstensen said.
Carstensen also noted that providing new movie releases enabled Sky "to attract more pay-TV subscribers than its rivals and having more subscribers increases further its advantages when bidding in the next round for pay-TV movie rights, and so it goes on."
Added Carstenen: "Recent movie content is important to many pay-TV subscribers. As a result, Sky's control of this content on pay TV enables it to attract more pay-TV subscribers than its rivals and having more subscribers increases further its advantages when bidding in the next round for pay-TV movie rights, and so it goes on."
The satellite broadcaster spends north of £250 million ($412 million) per year on buying films, more than its budget for Sky News and other entertainment channels.
Under recommendations put forward by the Competition Commission, BT and Virgin Media would be able to rival Sky Movies by offering their own selection of new releases.
BSkyB issued a statement noting the announcement of provisional findings by the Competition Commission in its movies on pay-TV market investigation.
"BSkyB continues to believe that no regulatory intervention is required and that consumers benefit from high levels of choice, value and innovation across a wide range of providers," BSkyB said. "We note that the CC's findings remain provisional and have been issued for consultation. We will continue to engage with the CC during the ongoing regulatory process."
The Competition Commission is scheduled to publish a final decision in August 2012 after consultation on its provisional findings.

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Revenue streams add up for cablers...

Does cable have it too good?

The industry's top execs would never say so, and certainly they have their own dragons to slay. But at the Variety Entertainment & Technology Summit "State of the TV Business" panel on Monday, it was hard to avoid the conclusion that while broadcast nets are trying to reinvent the wheel, cable is giving its tires another coat of Armor All.

"We have a better business model," Comcast Entertainment prexy-CEO Ted Harbert said. "It's not (broadcast's) fault. They didn't do anything wrong. They've got a single revenue stream, which will change soon thanks to retrans, which it should, because they do deserve retrans fees, so that will make it more of an equal playing ground. But there are several other things that cable does well that allows us to have a profitable business model."

"The facts are the facts," Harbert added. "We deliver a very significant profit, and most broadcasters don't."

With the broadcast networks focused on imminent pilot decisions, Harbert was joined on the panel by Lionsgate TV president Kevin Beggs, USA original programming prexy Jeff Wachtel and Turner programming head Michael Wright. Pilots remained part of the conversation, as evidence of how broadcast can be bogged down by a process that cable nimbly works through.

"For every 'Two and a Half Men' and now 'Big Bang Theory' that's going to make hundreds of millions of dollars -- that sets the bar, and that's the expectation," Beggs said. "So it becomes difficult on the selling side, but then you have to create a financial model going in that makes sense ... because it's so expensive to make a broadcast show that you're in such a deficit you can almost never get out of it.

"The way we engineer it is we want to be break even or profitable going into every show ... and then, wild success, if we get eight seasons in cable and can sell 100 (episodes), or the homevideo becomes something special as it has been for 'Weeds' and 'Mad Men.' Then you're actually seeing real value. But just depending on the back-end sale is very tricky these days. We can't hope that that's going to happen."

With confidence in their fundamentals, the cablers are essentially tinkering now, whether with the ratio of original to acquired programming or, as Wright suggested, pursuing more cable-to-cable programming deals.

"While it might not be a $100 million 'I'm gonna go buy a mansion' payout, it's a revenue stream," Wright said.

For all the talk about broadcast and cable dichotomy, Wachtel said the conversation is already beginning to change.

"I think we're in the big moment right now," he said. "There's something going on in the way the next generation processes information (and) processes entertainment that everybody talks about. ...So maybe people won't be talking about broadcast vs. basic vs. premium.

"Probably over the next few years, the broadcast networks all have to figure how to handle this extraordinary R&D expense and this lower ratio of success, and figure out a way to increase that ratio of success," Wachtel said. "And if that means programming fewer hours, maybe that's it."

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Saturday, August 20, 2011

German Cable Companies Back in Black...

Little sign of cord cutting as Kabel Deutschland and Kabel BW report strong first half results.

COLOGNE, Germany - Cord cutting? What cord cutting? First half results from Germany's Kabel Deutschland (KDG) and Kabel BW provided further evidence that, in this territory at least, cable remains king. Both companies booked strong revenue and profit growth. Sales at market leader KDG were up 5.8 per cent year-on-year to $592 million (€412.1 million) and the company turned its $3.5 million loss in H1 2010 into a $12 million (€8.5 million) net profit. While the total number of KDG customers slipped slightly, to 8.7 million from more than 8.8 million a year ago, more Germans signed up for KDG's broadband, telephony and pay-TV services, boosting revenue overall.

John Malone's Liberty Global Buys German Kabel BW for $4.5 Billion.

It was a similar story at regional cable operator Kabel BW, which saw revenues jump 10.7 per cent to $431 million (€300.2 million) and pre-tax profits top $144 million (€100.4 million), a 28.4 per cent increase. Again it was premium services driving the numbers, as pay-TV subscriptions jumped 39 per cent to 324,000 and broadband/telephony subscriptions were up about 25 per cent to 740,000. Kabel BW even managed to increase its total customer base, adding 48,000 new subscribers to make nearly 2.4 million overall. John Malone's Liberty Global bought Kabel BW in a $4.5 billion deal earlier this year.

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Thursday, August 18, 2011

On location : Hollywood's Iranian caper comes to L.A...


At the height of the Iranian hostage crisis, artist-turned CIA technical officer Tony Mendez pulled off a stunning caper when he helped six American diplomats in the Canadian embassy in Tehran escape by disguising them as members of a Hollywood film crew.

Thirty-two years later, Mendez's daring plan has been turned into a movie called "Argo" that will begin filming next week on the streets of Los Angeles.

The movie, starring and directed by Ben Affleck and produced by George Clooney, is one of several high profile studio feature films shooting in L.A. this summer and fall. Others include "The Gangster Squad," a star-packed crime drama starring Sean Penn, Josh Brolin and Emma Stone in a story about the Los Angeles Police Department's efforts to keep the East Coast mafia out of L.A. in the 1940s and 1950s.

Both Warner Bros. films will be shot primarily in L.A., lifting local feature film activity, which was virtually flat in the first two quarters of the year compared with the same periods in 2010. On location movie production climbed 8% in 2010 from 2009 but was still nearly half what it was a decade ago due to competition from cities outside of California.

The state's film tax credit program has helped stem the tide. Indeed, each of the new Warner Bros. pictures, which have budgets in the $50 million to $60 million range, received approval for state film tax credits: $6.3 million for "Argo" and $11.5 million for "The Gangster Squad," according to the California Film Commission.

"These are healthy-sized features that employ a lot of our members,'' said Ed Duffy, business agent for Teamsters Local 399, which represents location managers, studio drivers and casting directors. "Producers are starting to look at L.A. a little bit more."

"Argo," based on a 2007 Wired magazine article and stars John Goodman, Alan Arkin and Bryan Cranston, will film some scenes in Turkey and Washington, D.C., but the bulk of the movie will be shot in L.A.

The production is slated to shoot for 50 days in various local locations, from the Ontario International Airport, which will stand in for the Tehran airport, a private residence in Hancock Park and a Veterans Affairs building in North Hills. Some filming will likely take place on the Warner Bros. lot in Burbank.

Chris Brigham, an executive producer for "Argo," said the state tax credit program was an important factor in the decision to shoot locally, as was the fact that part of the movie's story takes place in L.A., where the film crew caper was plotted. Hollywood's talented crews were also a factor in keeping the production in L.A., Brigham said.

"There's such a wealth of knowledge here that you can't find anywhere else,'' he said. "The film crew here is pretty much the best in the world."

"The Gangster Squad," a co-production between Warner Bros. and Village Roadshow Pictures, will begin filming in L.A. in early September. The film is based on the "Tales from the Gangster Squad" series by former Los Angeles Times writer Paul Lieberman.

"It was budgeted for a number of locations but we decided we could do this old style: actually shooting L.A. for L.A., " said Lisa Rawlins, Warner Bros.' senior vice president of public affairs.

Meanwhile, Warner Bros. and Legendary's big budget Batman film "Dark Knight Rises," expected to cost at least $250 million, has been filming in Britain and Pittsburgh but will shoot at least two months in L.A. this fall.

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Netflix to hit Spain and Britain in early 2012, also exploring other countries..

Netflix is gearing up to launch in Spain and Britain in the first half of 2012 and is exploring several other countries in Europe and Asia for later debuts, according to people briefed on the matter.

Chief Executive Reed Hastings has named international expansion as a key driver for Netflix's growth in the coming years. Though the company's 25-million-person subscriber base has been growing rapidly in the U.S. and Canada, that's expected to slow, particularly in light of a recent 60% price increase for people who watch video online and get DVDs through the mail that led to outrage among some customers.

Last year, the company launched its Internet streaming service in Canada and in July it announced it would go into 43 Latin American countries by the end of 2011.

Now Netflix is talking to studios about acquiring content rights to move into Spain and Britain in the first half of 2012. Though a move into Britain was previously expected, Spain will pose a unique challenge because piracy is rampant and unemployment is more than 20%, the highest in Europe. DVD sales are very low in the country and there is no real digital download business. Apple Inc.'s iTunes Store doesn't sell movies and TV shows in Spain.

The Spanish rollout will be a test of whether people used to watching movies at home for free will pay about $8 per month for content that's typically higher quality and easier to find than on piracy websites.
Netflix is negotiating with Hollywood studios to acquire digital rights to stream content in Spain. In addition, the president of a Spanish producers' association told ScreenDaily that the company has been in talks with local content makers as well.

With Britain and Spain on the agenda for the first half of 2012, Netflix is exploring other countries to move into later. Among those it has been analyzing, but not yet committed to launch in, are South Korea, the Netherlands, Belgium, Luxembourg and the Scandinavian nations, said people familiar with the situation who were not authorized to speak on the record.

A Netflix spokesman declined to comment.

As it examines new foreign markets, Netflix is seeking countries with high broadband Internet participation rates and popular content that is available to be licensed and not locked up in exclusive contracts with other distributors, the people close to the matter said.

Thank you Los Angeles Times


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Tuesday, August 16, 2011

What is the best way to distribute an independent movie on iTunes, Netflix, etc.?

For an independent film maker that made a movie a few years ago and now wants to distribute it on the web via iTunes, Netflix and any other venues available.

What is the best way to achieve this?

1- In addition to Indieflix you can try Distribber. They charge a flat fee to get you up and include Netflix, Amazon Video on Demand and Cable VOD.

2- Assuming that the filmmaker still controls the rights to the film in the territories those services provide, they have a number of options.

There are aggregators out there who gather indie film projects and distribute them on various channels.

One for example is Indieflix who, in addition to their own download and subscription service, feed content to Netflix, Amazon, and iTunes. They take 30% of the net and give 70% to the filmmaker.

Netflix will require DVDs to be supplied to them for circulation. iTunes is more of a mystery. Apple are definitely more comfortable with MPAA rated studio films. MPAA ratings are expensive to procure and will certainly aid the filmmaker in persuading channels to take (and position) the film. Apple do show unrated independent features, but there appears to be a selection process, a G-rated trailer seems to be a help.

http://indieflix.com/pages/filmmaker/

ndieflix is not alone, there are others. For example apparently New Video only take 15% of the Netflix revenue but I am unaware of what other channels they have access to.

http://www.newvideo.com/about/about-new-video/

You should be able to create a mix which gives the best deal across the various channels for the film.

Most of these have their filmmaker agreements online or easily available.

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Movieclips Raises $7 Million; Strikes Deal With YouTube...

The company, which licenses content from the major studios, slices films into short scenes and makes them easy to locate on the Internet.

Movieclips, which puts scenes from movies on the Internet and makes them easy to find, is set to announce Tuesday that it has raised $7 million in a second round of funding and has struck a deal for putting 20,000 HD movie clips on YouTube.

The funding round was led by MK Capital and includes several people and entities that invested in a previous round that raised $3 million.

Movieclips licenses films from several studios and chops them into scenes that can be searched for by title and actor, of course, but also by dialogue, props, locations and more.
Headquartered in Los Angeles, the company employs 25 people but will hire an additional 10-15 in light of the new funding and relationship with YouTube, said co-founder Richard Raddon.
"It's the first time that this much licensed movie clip content will be available on YouTube." Raddon said.

The same content was already available at Movieclips.com, but YouTube will put it in front of far more people and on mobile devices and Internet-connected TV screens.
"They take away a lot of the burden for a startup to get on these platforms," Raddon said. "We believe YouTube will be the next cable."

Movieclips earns money by selling ads that it attaches to the film scenes, and typically it has a revenue-share deal with studios, as it now does with YouTube, as well.

Thank you Hollywood Reporter

__._,_.___


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SAG TV Session Fees Plummet 11.1% in 2010...

The drop continues a trend that began in 2005 but accelerated after the writers strike – but the picture is more complex than a single number may suggest.
SAG principal session fees for television work slid 11.1% from 2009 to 2010 according to figures released by the guild. That number is bad enough, but consider this: SAG, like all the above the line unions, received a 3.5% wage increase in 2010. If SAG's market share had held firm, session fees should have increased by 3.5%, not dropped by 11.1%. That's a swing for the worse of over 14%.

The union attributed the drop to "lost coverage," an indirect reference, at least in part, to AFTRA's heavy share of new series for the past several seasons.
SAG's share of new series has dropped each year from 2009 onwards, and AFTRA's has increased. The number of hours of scripted programming may also have changed over that period, which would affect both unions, although AFTRA could recoup a small amount of its losses, since it often covers the hosts or judges of reality programs.

However, contrary to popular belief, the drop may not be entirely attributable to SAG's failure to sign a studio contract in 2008, which triggered a stalemate that lasted until mid-2009 and resulted in AFTRA achieving a roughly 90% share of primetime pilots and new primetime series in the 2009, 2010 and 2011 seasons.

On the contrary, the slide started in 2005 and accelerated after the WGA strike that ran from Nov. 2007 until Feb. 2008 – i.e., even before the SAG stalemate that began in mid-2008. That suggests that other factors may also be at work, such as the recession and AFTRA's increasing share of basic cable series, a phenomenon that began mid-decade.
Still, the drop since 2005 has been a punishing 37%. Over that same time period, SAG minimums increased by more than 16%. Had SAG retained market share, it would be seeing a healthy increase over that period, not a calamitous drop.
A comparison with AFTRA is impossible because the latter doesn't release earnings figures.
As old series end their runs and new series take their place, the bad news for SAG may continue – unless SAG and AFTRA merge. Merger advocates point to this as one reason among many for merger.

Some opponents, on the other hand, look at the same figures and allege a conspiracy between AFTRA, the studios, networks and producers, and some elements of SAG's leadership to weaken the guild by sending work to AFTRA, precisely in order to drive merger.
Despite the claim, merger opponents do not seem ever to have publicly explained how the conspiracy was effected, and when and by whom.

When residuals and background fees (extras) are added in, last year's drop was smaller, 8.2% rather than 11.1%. Residuals themselves dropped only 1.9%. Residuals don't track session fees, because many residuals formulas don't relate to session fees. Also, changing reuse patterns affect total residuals.

SAG's grand total earnings – session fees, residuals and background from television, theatrical, commercials and smaller agreements – has hovered between $1.9 billion to $2.2 billion since 2004, with no particular trend up or down. Total session fees have declined since 2007, but residuals show no clear trend over that period.
The earnings report appears in the current issue of SAG's member magazine and is also available on the union's website.

All the figures reflect capped wages: for instance, earnings above $15,000 for a half-hour episode or $24,500 for a one-hour are not included. There are higher ceilings for television long-form and significantly higher ones ($200,000 or $232,000) for theatrical motion pictures.
The earnings caps are a result of the data source, which is the SAG pension and health plans. Earnings above certain levels are not subject to p&h, and so the excess is not reported to the plans.

As a result, economic class differences within the union are obscured in the reports. For instance, if producers decide to spend more of their cast budget on a small number of stars, and force other actors to accept salaries below their quotes, the guild's earnings report could show a drop in total earnings even if producers' total cast expenditures remained unchanged or even increased.

Whether that's part of the picture is unclear. Middle-class actors do report "salary compression" – i.e., being driven down from their quotes. However, whether television salaries at the very top of the thespian food chain have increased is unknown.

Thank you Hollywood Reporter

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