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Runaway production is a film industry term used to define motion picture productions and television shows that are "intended for initial release/exhibition or television broadcast in the U.S., but are actually filmed in another country." These productions are relocated to other countries for economic or creative reasons.

Overview

The Directors Guild of America (DGA) defines two classes of runaway productions. "Creative runaways" are film and television projects that are produced outside of the United States (in part or in whole) based on requirements of the script or the setting, or due to preferences of the actors or director. "Economic runaways", on the other hand, are productions that are primarily produced in other countries to reduce costs. This type of production typically involves films that are set (written to be shot) in the United States but which have instead been outsourced to other countries such as Canada, the United Kingdom, Australia, New Zealand, Romania, and Mexico. Traditionally these productions would have been produced in established U.S. film industry centers such as Hollywood, New York City and Chicago.

The US film industry has voiced concerns over an increase in the number of foreign productions, a trend which began in the early 1990s. This growth is attributed to a number of different factors, including lower costs for labor, goods and services. A sharp rise in the value of the U.S. dollar in relation to other currencies and an increase in the quality of non-U.S. production crews and infrastructure are also contributing factors. The most contentious issue has been the availability of tax incentives and rebates for American productions relocating to other production centers. Canada, in particular, is cited for a series of federal and provincial subsidies offered to foreign productions.

Typically, foreign governments and/or state jurisdictions offer wage, tax, and financing incentives such as 'tax and labor credits' and tax concessions to attract outside film and television productions. A DGA study notes that "the Canadian government has engaged in a comprehensive and aggressive, long-term strategic campaign to attract U.S. producers." The report estimates that runaway productions cost the United States over 50,000 jobs and at least US$10 billion in production monies in 1998. This is up from an estimated US$2 billion in 1990. According to a 2001 U.S. Department of Commerce report by Commerce Secretary, Norman Mineta, "Runaway film production' has affected thousands of (U.S.) workers in industries ranging from computer graphic to construction workers and caterers. These losses threaten to disrupt important parts of a vital American industry."

According to a study by the Canadian government, productions are now "running away" from Canada as well. Productions are now going to countries that have introduced matching competitive subsidies. Also, many productions are now returning to the United States due to recent changes in subsidies by the US.

Runaway productions have become a political issue arising during election campaigns in California and other U.S. states. The loss of jobs and production monies have led to non-profit U.S. industry groups, such as the Film and Television Action Committee (FTAC), lobbying state and federal governments to introduce American legislation and incentive programs. These groups have also complained that foreign incentives for film and television production are in violation of World Trade Organization (WTO) trade rules restricting or prohibiting the use of government subsidies.

History

Hollywood, California has been synonymous with film and television production for almost one hundred years, ever since director D. W. Griffith filmed In Old California in 1910. Tourists come from around the world to see historical movie studios, the Hollywood Walk of Fame, and the Hollywood sign.

Over the past decade, the Canadian government introduced a series of plans and incentives to attract American film and television productions moving them away from their typical film centers. In recent years, the U.S. Congress has attempted to counter this trend with similar incentives. Local and state governments have also implemented counter-incentive programs in an effort to encourage domestic film productions to remain in the United States.

The FTAC claims that "this is not based upon rational economic factors such as productive “A” list crews, infrastructure and the availability of production facilities but on the basis of how much governments of competing film centers offer to pay the 6 major studios and media corporations in the form of subsidies and other economic tax based incentives."

"In just the past six years, the film production subsidies ranging as high as 44% of payroll, have removed three quarters of U.S. long form television production and one quarter of U.S. feature film production from our shores. These films are now shooting in the 19 foreign countries that offer these subsidies. The economic impact of this crisis has been devastating to the 250,000 film workers, and the 10,000 small businesses that derive their income from the production of American filmed entertainment products."

Competing subsidies

Ron Haney, executive director of the Directors Guild of Canada, is quoted, "Everybody can compete with tax credits now…. It's absolutely frightening."

Problems have risen due to the nature of some incentive programs. Some Canadian subsidies have been given exclusively to foreign productions, rather than being used to develop Canadian film productions, as was originally intended. An editorial in the Canadian industry journal Playback complains that "the Canadian public pours close to $1.5 billion into U.S. studio and network coffers while virtually ignoring productions developed in its own backyard."

Industry trends

While the problem of runaway production has not gone away, there have been "acts of God" that have helped keep American film productions at home in the U.S.

SARS

SARS (Severe Acute Respiratory Syndrome) originated in southern China in November 2002. By March 2003 cases were seen in people returning to Canada from Hong Kong, particularly in Toronto - a major production center. According to the World Health Organization (WHO), at the time there were 774 worldwide deaths related to SARS and Canada saw 438 probable SARS cases, with 44 deaths. According to Rhonda Silverstone, Toronto's film commissioner, Canadian production suffered a downturn as American productions stayed home or located elsewhere.

Quebec labor

Disputes between Quebec labor groups and American film productions have led to what Variety called, "a bitter fight that erupted... between Hollywood producers and Quebec producers over working conditions."

Aftermath of the September 11th, 2001 attacks

There was also a significant downturn in runaway production in the aftermath of the 9-11 attacks on New York City in 2001 and which has lasted several years thereafter. Many productions were temporarily halted as it was difficult to travel in or out of the United States just after the attacks. American producers, actors and directors who were shooting in other countries were effectively stuck outside of the country, and many had to make lengthy journeys by plane, train and automobile to get back in.

Also in an attempt to reconstruct the film industry in New York after 9-11, many new ""Made in NY" counter-incentives have been developed to lure film productions back to the "Big Apple". According to Variety, New York City hit a record high for production due to counter-incentives, re-upping its number of shooting days 10% from 2005.

The reality TV boom

Although feature filmmaking in Los Angeles is still affected by runaway production, the reality TV boom has meant that many U.S. television productions are more likely to be shot where they are situated, in the United States.

References

1. ^ Monitor Company (1999). "U.S. Runaway Film and Television Study Report" (PDF). Director's Guild of America/Screen Actors Guild. p. 29. Retrieved 2007-01-25. {{cite web}}: Cite has empty unknown parameter: |month= (help)
2. Herd, Nick (2004). Chasing the Runaways: Foreign Film Production and Film Studio Development in Australia 1988-2002. Strawberry Hills: Currency Press. ISBN 0958121338.
3. Felstead, Debra (Jul 06, 2003). "Toronto TV production is fading to black". Media Monitor Digest. Retrieved 2007-01-27. {{cite news}}: Check date values in: |date= (help)
4. ^ "Total Economic Impact Of U.S. Economic Runaway Production". Directors Guild of America. 2000. Retrieved 2007-01-25.
5. "Impact of the Migration of U.S. Film and Television Production". United States Department of Commerce. 2001. Retrieved 2007-01-25.
6. ^ "The Decline of Foreign Location Production in Canada". Government of Canada. 2005-05-24. Retrieved 2007-01-25.
7. Berman, Howard (February 12, 2003). "Bipartisan Bill Aims to Keep Movie and TV Production Jobs in the USA". U.S. House of Representatives. Retrieved 2007-01-27.
8. ^ "FTAC Home". Film and Television Action Committee. Retrieved 2007-01-25.
9. Verrier, Richard (October 23, 2005). "Canada rolls credits on a slump". Los Angeles Times. Retrieved 2007-01-25.
10. Vamos, Peter (Sep 13, 2004). "Runaway production a fair trade". Brunico Communictations Inc. Retrieved 2007-01-25.
11. ^ "SARS (Severe Acute Respiratory Syndrome)". CanWest MediaWorks Publications Inc. Retrieved 2007-01-27.
12. Vlessing, Etan (January 30, 2004). "Canada indies 'all hurting' as market goes downhill by Etan Vlessing". FRIENDS of Canadian Broadcasting. Retrieved 2007-01-27.
13. Kelly, Brendan (Feb. 26, 2004). "Montreal malaise". Variety, Reed Elsevier Inc. Retrieved 2007-01-27. {{cite news}}: Check date values in: |date= (help)
14. 1/19/2007 - "Shooting hits record high in Gotham" Variety (subscription)
15. 11/6/2006 - "Reality boom boosts TV prod'n" -by Dave McNary, Variety (subscription)

See also

• Cinema of the United States
• Cinema of Canada
• List of movie-related topics
• List of movies set in Los Angeles
• List of television shows set in Los Angeles

External links

• FTAC - Film and Television Action Committee web site
• The Creative Coalition - member’s advocacy work against runaway production
• CEIDR - The Center for Entertainment Industry Data and Research - includes link for 2005 report
• DGA/SAG Commissioned Study Shows Total Economic Impact Of U.S. Economic Runaway Production Reached $10.3 Billion In 1998 (June 25, 1999)
• 2001 - Commerce Secretary Mineta Releases Report on the Impact of the Migration of U.S. Film and Television Production
• 2003 - Congressmen Dreier, Berman Re-Introduce Runaway Production Legislation
• 2004 - Governor Schwarzenegger Joins with Other Big State Governors to Push for Federal Incentives Package to fight runaway production
• Variety 7/31/2006, 2006(subscription) "Runaway drain? Study: Pic biz in big production pickle"

• Film
• Film and video terminology
• Film production
• Mass media
• Cinema of the United States