More than three months after the Writers Guild of America’s strike, Hollywood is facing a new round of labor negotiations that, should they fail, could spell another potentially long strike for the city (and California as a whole).  As the Screen Actors Guild (SAG) and The American Federation of Television and Radio Artists (AFTRA) negotiate with AMPTP (the Alliance of Motion Picture and Television Producers), the state is still trying to right itself after the WGA shutdown last November.

Anyone who watches television can clearly see the surface effects of the WGA strike – everything from shows cancelled outright, to production schedules that have been pushed back by months – some even until next year (film production also suffered, but that was mostly in rushed scripts and a lack of rewrites on set).  But in order to appreciate the full magnitude of the three months of work-stoppage, one has to dig deeper, specifically into the economic impact the strike has had on all forms of industry-related professions, and on the state’s fiscal health in general.  A report by the Milken Institute, an independent economic think tank, details the numerous ways in which the strike has had (and will continue to have) a lingering effect.  The information contained in this report is all a result of the strike, and shows the roll it played in harming the already struggling state and local economies.

“Substantial”.  This is the word the report uses to describe the strike’s effect on Los Angeles and California, specifically in job loss and overall economic health.  “The state is projected to show a total loss of 37,700 jobs and $2.1 billion in lost output from the fourth quarter of 2007 through the end of 2008. Total personal income and total wages and salaries are projected to decline by $3.1 billion and $2.3 billion, respectively.”  All of these figures, attributable to the strike.  What’s most amazing about these facts is the vast reach of the strike, hitting not just actors and writers and everyone involved in production (hair and makeup artists, lighting technicians, camera operators, set designers, etc.), but also those peripheral to the industry, such as caterers and hotel staff.  The rippling effect of so many people having to tighten their belts has even caused finance, insurance, construction, and health-care to suffer.

According to the report, the strike was one of many factors that helped push California into a recession this year.  As a result, the strike “will continue to resonate over time, causing direct impact on employment, output, and wages and salaries, in turn affecting retail sales and causing ripples through other industries.”  There are also other lingering concerns, for instance a decline in television viewership; people had three months to kill, after all, and ended up turning to alternate sources of entertainment.  Bringing these viewers back into the fold is imperative, for the studios as well as for the advertisers who provide their revenue; however, as mentioned above, television executives are still having difficulties arranging their schedules to bring them back to normal levels.  Until they do, advertisers will remain wary.

This is just a basic overview on the negative effects the strike has had on our economy.  The good news, however, is that “[these effects] will gradually diminish over time; by the beginning of 2009, its effect on most industries will finally drop to a barely noticeable level.”  Unfortunately, this will happen only if SAG and AFTRA can settle their differences and coordinate their negotiations with AMPTP; otherwise, their current contract will expire today, and the unions may call a strike.  If that happens, the impact of the WGA strike will not be replaced, it will in fact be magnified.  We will then be faced with two distinct work-stoppages in less than a year, a frightening prospect for a state that thrives on the entertainment industry flowing smoothly.

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I’ve seen more and more articles recently decrying “runaway film production” – film and TV shows leaving our city and our state, and heading toward more tax-friendly environs.  I have heard for years about Canada, for instance, offering a way out to productions seeking to trim costs… their streets and their locations serve well as a substitute for American locales, but at lower prices (for both location use as well as crews).  But I didn’t know why, in the past year, the issue had ballooned.  So I decided to do some research, to discover what moves the “competition” had made, and what (if anything) our state had done in the past few years to halt this trend.

One article I found dated back to November of 2006.  It talked about the need to retain film production in Los Angeles, and was written by our own mayor, Antonio R. Villaraigosa.  He was writing the piece in response to an editorial in the LA Times, which criticized closing the 105 in order to film a scene for “Live Free or Die Hard”; he stated in simple yet concise tones the need for our legislators to do all they can to keep these productions from heading elsewhere.  He writes: “Today, only 11% of all feature films are being made in California, and we cannot afford to cede this integral industry to other cities, especially as competition grows more fierce.”  He then goes on to cite that competition, pointing out that “14 states [have] passed new tax incentives or improved existing incentives for film productions,” and the “troubling, long-term implications to that trend.”  Finally, he rounds out his opinion piece by mentioning his support AB 777, a bill which could provide tax incentives for productions to stay in California. 

Sounds good to me.  So, this being a year-and-a-half ago, I did some research to find out what happened to “Assembly Bill 777 – Motion Picture Production Tax Incentives for California”.  While some criticism was levied against it with respect to its effectiveness, or the cost to California taxpayers, overall the bill seemed to be a good start.  The only problem is, this bill seems to have disappeared.  The most recent reference I could find to AB 777 was dated February of 2007, and talked about cruelty to elephants.  Obviously, the bill had had a makeover.

Searching for similar bills led me to an article from June of 2007.  One line in particular caught my eye, because of its familiarity:  “We will not sit idly by and watch this homegrown industry disappear because other states are being more aggressive.” This from Majority Leader Karen Bass, of Los Angeles.  Very similar to Villaraigosa’s stance, and yet again, I can find no follow-up article discussing a bill being passed.  It seems this push, too, had stalled.

I did, however, find an article from April of this year, which discusses the New York State legislature’s plan to triple their film and TV tax credits for productions within its borders.  The article goes on to say how “New York City [in particular] also offers a 5% credit, so city shoots can reap a total of 35%.”  And what was the reasoning for these increased credits?  Was the legislature responding to some move made by California’s lawmakers, a sort of tit-for-tat?  Was it trying to break the west coast’s hold on film and TV production?  No, these incentives were done “in a bid to regain an edge over [New York’s] credit-happy neighbors Connecticut, New Jersey and Massachusetts.”  That’s right – not to counter any moves that California or Hollywood had made, but to beat the moves made by other states.

Which finally led me to this article, from May 2008, in which Governor Arnold Schwarzenegger calls for legislative action, saying “California must increase tax incentives to movie and television studios as a way to keep them from moving their productions out of state.”  These comments came days after ABC Studios said it was moving production of ”Ugly Betty” from Los Angeles to New York – meaning the siphoning has extended to include not just individual shoots, but entire productions as well.  The article adds that Schwarzenegger has been pushing for such legislation for four years, but so far has found no success.

That is our loss – and this loss extends beyond the revenue generated by the productions themselves.  It seems simple to say, but keeping these shoots in Los Angeles and California in general can only have a positive impact, especially on tourism.  Because what else are we primarily known for, if not being the entertainment capital of the world?  Take away our film and TV shoots, and you take a major part of our identity.

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Too often, it seems, one hears about the vast differences between the coasts and the central states… “flyover states” they’re called, as though only to be appreciated (if at all) while passing beneath us.  There’s always talk of Hollywood executives being out of touch with these average television-watchers, of their belief that those people tend to embrace simpler, cruder entertainment.  It’s a constant cycle – Hollywood dumbs down television, thinking the average person need only a few explosions and some nudity to be entertained, and the “common man” strikes back that the people in Hollywood can’t make a decent show to save their lives.

To be honest, television is often out of touch.  It does tend to pander to its audience.  It gives us shows like “A Shot at Love with Tila Tequila” and “The Moment of Truth”.  This is what is called mindless entertainment: easy to ingest, without needing too much thought to do so.  And these are only two examples that typify the “make it cheap, make it simple, and make plenty of it” mentality, the idea that if this is what the people want, then we’re going to give it to them. 

The thing is, this is not what the audience really wants – not exclusively.  Sure, reality programming can be a nice break, a fun form of escapism.  But can you imagine if that was all television had to offer?  If every channel had some form of Lindsay Lohan’s mother staring back at you?  What a truly horrifying thought.  And yet, given the chance, many TV executives would do just that.  Make it cheap, and make it simple, right?  But the only problem is, audiences aren’t simple.  The emergence of reality shows in the past decade or so does not mean that they have a limited threshold of taste.  If anything, it means they are simply waiting to be challenged more often.

Take a look at any successful TV show, and the reason for its success can be traced to its acceptance by a vast audience – not just those on the east or west coasts (or the middle states), but all across the country.  As such, there can be no such thing as a “flyover state”, because no viewer should be ignored, or pandered to.  People in Kansas or Oklahoma are the heart and soul of any audience (just like those in California or New York), and they have just as much need for good entertainment as anyone.  A truly successful television show has at its heart creators that understand this need, and shape themselves to reach as wide an audience as possible.  Take “Lost”, for example, with its blend of action and special effects, thought-provoking writing, and impeccable acting.  The show is many things to many people, and is able to maintain this balance while never compromising its integrity.  It’s as if the creators started out by looking at their audience and at themselves, saying “we can give people intelligent characters and situations – we can stimulate their hearts and their minds and still get their pulses racing”.  They trusted their audience from day one; they didn’t dumb down their work, or spoon-feed it to their viewers.  In turn, their audience trusted them, and are consistently rewarded because of it.

This is not meant to be a discussion on the merits of reality versus scripted television; as mentioned above, both have something unique to offer.  But it would be nice, at the end of the day, to see a greater number of TV shows embrace the idea that their audience is more clever than they’ve been given credit for.  It would be nice if television executives sought out that balance – if they pushed themselves to spread their visions to as many people as possible without compromising those visions. 

Basically, it would be nice if they just shelved “A Shot at Love 3” and gave us something more…

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