Similar Movies, Similar Plot, Same Time?

In a class discussion recently, a fellow student raised the question as to whether we thought movies are released in a strategic fashion.  I decided to do a little investigating and found the answer to be without a doubt, absolutely…at least sometimes.   There are countless forums, blog posts, and articles, which discuss this topic, and some of the commentators have really interesting takes.  Obviously, each particular circumstance has its own chain of events which influence why a certain film is made and when.  Some movies are rushed into production, while other movies bounce from desk to desk for years until any progress is made.  And this bouncing from desk to desk and studio to studio could be a major contributing factor in itself.  The more people who read a plot, the more people inspired and influenced by that plot.  A studio may choose to pass on a particular script, but may inherently like the idea, so decide to tweak some details and call it their own- a major reason why most screenwriters need to be represented by agents: to alleviate a lot of the “you stole my idea” drama.

It definitely seems as if movies, or similar movies I should say, come in waves.  Sometimes it seems that if one movie is extremely successful, all of a sudden, other people want to jump on that bandwagon.  Think about the explosion of vampire movies after Twilight mania.  As of May, there were at least 10 new vampire movies in the making.  The same even holds true for television shows.  Think Glee/Smash, American Idol/The Voice/X Factor, So You Think You Can Dance/Dancing with the Stars.

However, there is also a race to make movies with the same concept, even before a pioneering movie has paved the way for success.  Recently, there were two different movies being made simultaneously about Snow White, with Lily Collins playing the lead in Mirror Mirror, which just came out March 16th, and Kristen Stewart playing the lead in Snow White and the Huntsman, due to be released June 1st.  There are, and will continue to be, tons of comparisons made between the two pictures.  The anticipation of paralleling the two films really helps advertise and hype each individually, and has begun to do so already, because they are based on the same fairy tale.  Apparently each is very different from the other, telling the story in completely distinctive ways.  Regardless, the media frenzy is definitely going to help both films cash in at the box office. 

Here are two links to websites that list movies which were released around the same time about the same topic.  There are a lot more than I realized!

http://tvtropes.org/pmwiki/pmwiki.php/Main/DuelingMovies
 

http://en.m.wikipedia.org/wiki/User:ProhibitOnions/List_of_films_with_similar_themes_and_release_dates

I’m sure now I will be paying closer attention to movies in production and movie releases, and will notice more and more of a strategy and trend as to when and why a movie gets the green light when it does, after having done this research.  Movies have the potential to generate enormous sums of money, which justifies all of the strategizing, competing, and racing through production and release.  If public acceptance and approval was an exact science, all films would be major blockbusters and everyone would profit.  But for now, while all anyone can do is speculate, I’m sure the trends and the rivalries will continue, so stay tuned.

Interview with Kenneth E. Carraway, an Entertainment Attorney

As my time in graduate school comes to an end, I find myself needing to make preparations to dive back into “the real world” for the second time around.  If you haven’t read my bio (shame on you!), after I receiving my Bachelor of Science in Biology from Villanova University, I spent about 12 years working, traveling, moving from place to place, trying to “find myself” and my true passions.  Through lots of trial and error, I realized I wanted to do a 180 and pursue a career in the entertainment industry.  Because my undergraduate studies were in a completely different field, I knew that going back to school was the way to go.  After serious consideration, I chose Full Sail University’s Entertainment Business Master of Science program, in the hopes that this degree will leave me with more than a $100,000 sheet of paper with my name on it (although I look forward to getting that too!).

One of the facets I absolutely love best about my degree program, is how the curriculum and assignments are focused entirely on real-life and real-world practical application, specially tailored to my future business endeavors.  As I have written in earlier posts, networking with professionals in the industry can be incredibly useful, as contacts can be called upon for advice and favors in order to help further achieve one’s goals.

In my last post, I discussed the importance of registering intellectual property, by filing for trademarks and copyrights, for example, in order to protect businesses and their owners from legal liability and so that no one else can use the registered ideas for their own personal gain.  I recently reached out to an entertainment lawyer named Ken Carraway, whose practice focuses on Business & Arts Law, in the hopes of gaining some professional and legal insight as to what he feels is most important when starting a small business.  Carraway Law represents businesses throughout the life cycle – from entrepreneurs with start-up issues, to seasoned business owners in need of succession planning.  The law office focuses in business formation, contract and licensing matters, and consultation services for a sustainable business model, with a strong concentration on intellectual property issues.

Kenneth E. Carraway is a graduate of Villanova University Law School, and being that I received my undergraduate degree from Villanova and the fact that his areas of practice fit seamlessly with my business plan, I asked if he could answer a few questions for me and to share some of his opinions as to how I, or anyone in my position, should go about turning a business plan into a reality.  I decided to share with you some of our conversation.  

I came to Ken as a prospective client, hypothetically of course, seeking legal counsel about how I should go about starting a business, and the steps necessary to get this business off of the ground.  He wanted to clarify that all my questions were of the “it depends” variety (meaning that the answer would vary for each question under differing facts), so it was difficult for him to arrive at answers that were very specific.  Therefore, he generalized his responses as best has he could.  In addition, he also added this DISCLAIMER: These answers are for informational purposes only for the purposes of a student assignment. It is not intended as specific legal advice regarding your questions. This does not establish an attorney client relationship.

So, here we go:

Is legal counsel recommended or required?

While it is not required that someone forming a business seek legal, I would highly recommend that they do so. Seeking legal counsel may help someone avoid some of the pitfalls that they may face in starting up their business. It’s different for everyone. Elementary questions one should ask when starting a business come to mind: Is this a sole proprietorship or a partnership? Do I need a business agreement? What kind of business entity is best for my business? Are there any regulatory or insurance requirements of which I should be aware? How will I be taxed? How do I protect my business name?

All of these questions, and many others, can be answered by engaging the services of an attorney.

How much money would such representation cost?

This varies, and may be dependent on the complexity of the business one is forming. One may find some attorneys that will charge an hourly rate for these services, while others may do it for a flat fee, or a mixture of both.

How much money is required to file all necessary paperwork and registrations?

Again this is dependent on the type of business and choice of entity.

How much time does completing all of these steps take?

For a small business without any regulatory issues, the process of setting up a business entity can be done fairly quickly. While a more complex corporate setup or non-profit may take several weeks or months.

Can a business start functioning before all of the necessary filings are

completed?

Generally, the short answer to this question is yes. But again it depends on the individual business, and a consultation with an attorney is a must if someone is considering this option.

As an attorney, do you offer your opinion and suggestions so as to help

entrepreneurs with their business ventures, or do you simply act on behalf of the client?

Both. An attorney will assist someone forming a business in navigating the various legal issues and may lend some non-legal advice in the form of counsel as well. Strictly speaking, a lawyer is his or her client’s advocate and will act on behalf of the client, but they obviously cannot be complicit in illegal or unethical acts and should advise their client accordingly.

Anything essential to launch a business?

A pulse. But to be successful? Tenacity.

As you can see, there definitely doesn’t seem to be any straight-forward, easy-to-follow instructions that anyone and everyone can follow in order to successfully launch a business.  I am realizing more and more that there are many individual facets that need to be addressed, many of which I would have never even been aware, hadn’t it been for my professors or for talking to professionals in the field such as Ken Carraway.   As much as I have learned thus far in Entertainment Business, I realize that for everything I do know, there is much more I do not.  Therefore, seeking the advice of legal counsel and other seasoned professionals will only strengthen my chances of successfully launching and running a business of my own. 

 

From Mr. Carraway’s responses, I have learned that you must be meticulous in completing all requirements, and must make sure to think every step through.  A business cannot be up and running in a day.  Therefore, patience is key.   It is much smarter to take your time and to make sure that every minor detail has been addressed, versus rushing to open a business and then suffering from your carelessness down the line.  Although consulting an attorney will cost money, most or all of which many individuals starting a business may not have readily available, in my opinion, legal representation is well worth the investment.  You have someone on your side, who is much more knowledgeable and experienced than you, acting to protect you and your business from any legal ramifications.  Pride must be swallowed.  Ask for help.  Naively thinking you know what you’re doing will just lead you blindly down an un-navigated path.

Ken Carraway’s responses made me realize how overwhelming and intimidating starting a business can be.  However, he has inspired me in more ways than one.  Mr. Carraway says that although anyone may be able to start a business, in order to be successful, you must be tenacious.  In my opinion, the ultimate way to be tenacious is to fight for something you love.  If you are gutsy enough to take chances and to try to make it in business on your own, you must have total confidence in yourself and in your business plan.  

Although this interview did not establish an attorney client relationship between Ken Carraway and me, Ken’s openness and willingness to help me has made me respect him as a professional and to value his opinion.  Especially in business relationships, trust is key.  If you are fortunate enough to come across a genuine individual, latch on.  As much as I’d prefer to continue seeking advice for free, my time in “the real world” is inevitable.  Hopefully this interview can serve as the foundation to a budding professional relationship, as I admire and respect Ken Carraway, and would be privileged to have my business represented by his firm.

Kenneth E. Carraway

Carraway Law

1379 Dilworthtown Crossing, #115

West Chester, PA 19382

Phone: 610-572-2821

Website: www.kencarraway.com

Email: ken@kencarraway.com

Protect, Protect, Protect!

Currently I am studying Entertainment Law and have recently been focusing on various liabilities that affect the industry.  What I consider to be probably the most overwhelming legal topic, is the fact that you can be sued for pretty much anything and everything.  So, with that in mind, I decided I would discuss a few examples of recent incidents that prove my point, and why it is essential for artists, producers, and everyone in between, to protect their ideas, their deals, and themselves.  What do reality TV, the Batmobile, and the movie One Shot starring Tom Cruise, all have in common?  They are all currently the center of lawsuits trying to determine who has the rights to what.  Let me explain.

Reality TV

A hobby of mine, which will someday be an official and successful business venture, is developing reality television shows, so this case hits close to home.  An Australian named Paul Thayil decided to sue a laundry list of networks, companies, and individuals, including Fox, NBC, Sony, EMI, Simon Cowell, Nigel Lythgoe, and Simon Fuller, the creator of American Idol, because he felt that his ideas were stolen and ultimately used as the basis for various reality shows including American Idol, So You Think You Can Dance, Dancing with the Stars, and America’s Got Talent.  He claims he developed similar ideas about 15 years ago and tried to pitch several shows to a few people in Australia, but nothing ever came of it.  Unfortunately for his sake, when Thayil tried to convince a New York Federal Judge of this claim, he had no proof of ever copyrighting his ideas, so basically, he’s out of luck.  Regardless of whether he’s telling the truth, with no evidence of having protected his plans with copyrights, he’s got no grounds to stand on.  The lesson?  If you have an idea you think is original and potentially valuable, and you don’t want to see someone down the line profiting off that idea that isn’t you, filing a copyright through the United States Patent and Copyright Office is the way to go.

The Batmobile

Another recent instance involving copyright infringement concerns the infamous Batmobile, the widely recognizable car driven by non other than Batman himself (oh, and Justin Beiber, but we’ll get to that in a minute).  Just last month, a judge ruled that the Batmobile is eligible and protected by copyright.  DC Comics, owner of all things Batman, sued a car dealer named Mark Towles, for selling imitation batmobiles out of his “Gotham Garage”.  The sticky part of this lawsuit came when determining why, when other cars can’t be protected under copyright because they are considered “useful articles” under the Copyright Act, but the Batmobile can.  The answer?  Because according to United States District Judge Ronald Lew, who presided over the case, the Batmobile “grants copyright protection to nonfunctional, artistic elements of an automobile design that can be physically or conceptually separated from the automobile.”  Therefore, Towles finds himself in hot water.  And also as a result of the judge’s decision, so does Justin Beiber.  Beiber had a CTS-V Cadillac Coupe transformed into a Batmobile of his own, which means that technically, Beiber could be sued by DC Comics for copyright infringement next.  He should probably get his legal team on that.  What’s the lesson here?  Same as above, except this time, we see how taking the time to copyright an idea can put you in the driver’s seat, no pun intended!

One Shot

Finally, we have One Shot, and the resulting legal battle that ultimately ensues.  Last week, two producers of the thriller were sued by a third producer for due credit and “rightful share of the compensation” they stand to make off the potential franchise.  Don Granger and Gary Levinshon, along with their Mutual Film Company, are named defendants in a suit filed by Kevin Messick.  Messick claims the three producers entered into an agreement to develop the film together.  The problem is, that although Messick worked for more than half a decade on making this film come to life, all of his agreements with Granger and Levinshon were in good faith.  So, yes, Granger and Levinshon did axe Messick out.  That accusation is not in question.  What is in question, is whether Messick is due the equal credit and equal compensation he says he was promised.  Although Messick’s lawyers are filing suit alleging “breach of contract, breach of covenant of good faith and fair dealing, breach of fiduciary duty, fraud, promissory estoppel and unjust enrichment”, most of which I have yet to, or will likely never, learn and understand what they mean, what I can gather is this: If Messick would have forced the duo to sign a contract, this legal battle, and likely his deprivation of participation, wouldn’t exist. 

So, in short, from analyzing these three lawsuits, I think my point is clear.  If there is one word for the wise, it’s protect, protect, protect!

THR's Next Gen of 2011: Hollywood's 35 Under 35

In November, The Hollywood Reporter released their 35 under 35, a list of Hollywood’s fastest rising stars.  This list, which includes such honorees as Ari Emanuel, Stacey Snider, and Mike DeLuca, pays tribute to some of the industry’s brightest talent and high-profile projects.  This is the 18^th year the list has been compiled, and for sure is a major honor, as anyone who is anyone in Hollywood reads and respects The Hollywood Reporter.

The list is broken down into categories which include Actors, Actresses, Agents, Digital, Film, Legal, Management, Publicity, TV, and Writers and Directors, in alphabetical order.  For anyone who is interested in working in Hollywood, studying the accomplishments of these young professionals is an excellent way to learn from the best of the best and to see what it takes to make it big.  According to THR, “for some, it may be their ability to see potential before anyone else does.  For others, it’s a knack for negotiating a deal through complex industry channels.”  The co-chairman of Fox Jim Gianopulos, it’s "coming up with the right answer. More often, it's coming up with the right questions. … And if you're smart enough to already have the answer, that's talent."

As a manager myself, of course I was immediately drawn to the managers THR chose as members of this renowned list.  I was interested to see what the most successful young managers were doing and what they have accomplished thus far in their careers which have secured them as a coveted Next Gen of 2011 inductee.  Three individuals were highlighted. 

Scott “Scooter” Braun, 30, is the founder of Silent Media Group.  Getting his start as an Atlanta party promoter, he graduated to marketing executive at Jermaine Dupri’s So So Def Records.  By age 26, he was looking for something more.  Motivated to find the next big thing, he did just that.  He scoured YouTube and discovered Justin Bieber.  Partnering with Usher, he signed Bieber, and the rest is history.  Braun has steered the young Bieber’s career to superstardom, largely in part to Never Say Never, the hugely successful film documenting Bieber’s rise to fame which was Braun’s creation and co-production.

Adam Kossack, is a manager at Anonymous Content.  After graduating from college, Kossack’s first job was as production coordinator for N’Sync.  He decided to forego his plans to attend law school and decided to answer phones for Next Gen’s Class of 2006 Michael Sugar.  He followed Sugar to Anonymous and has been building a roster of writer-director clients ever since his promotion in 2007.  

Last but not least, Tucker Voorhees is a manager at Principato Young Management.  After stints at several companies including Robert Redford’s Wildwood Enterprises and 3 Arts Entertainment, Voorhees moved from Los Angeles to New York City where he was told to “go out and sign funny people”, and he has done just that.  He has scouted such talent as Zach Galifanakis and Stephen Colbert.  In 2007, he returned to Los Angeles and joined Principato where he reps actor-writers, directors, and some of the original comedy talent he scouted in New York.

My suggestion to anyone looking to break into the industry is to read and reread the mini biographies of each of the 35 people THR has chosen as this year’s best young professionals in Hollywood.  Something can be learned from each and every one of these individuals whether it be from their decisions and work history, their philosophy, or their work ethic.  All of these people came from different backgrounds and have made their way to the top doing different things in different niches in the industry.  However, one thing remains constant, these people are among the most dedicated and hard-working of them all, which should be motivation for everyone that if you put forth the effort, it is possible to break into the business and make a name for yourself.

Tattoo Artists: The Next Big Catch for Managers?

Last week I went to get a new tattoo, and as I was sitting in the chair talking to the artist, it came to me.  Tattoos have increased in popularity considerably over the years.  According to U.S. News and World Report, tattooing is one of the fastest growing retail businesses in the country, with a new shop opening every day, adding to the 20,000 plus parlors already in existence.  For those of you who have tattoos, you well know that most people are extremely particular about who tattoos them.  You admire others’ work and ask who did their work.  Most artists say they gain most of their clientele from word of mouth and referrals. 

“Famous” tattoo artists are so sought-after that they oftentimes have a waiting list months long.  Several of these artists currently appear on the hit TLC reality shows LA Ink , NY Ink, and the former show Miami Ink, as themselves.  These artists are now TV personalities in their own right.  I’m not sure there’s anyone who’s living in this country who hasn’t heard anything about Kat Von D for instance.  Despite largely being known as the woman who had an affair with, and is now engaged to Sandra Bullock’s husband, well, former husband, Jesse James, she is an extremely talented tattoo artist, who has captured the attention of many.  Von D has appeared in music videos, launched a makeup line, and released several fragrances.  Her book, High Voltage Tattoo, became a best seller.

London boasts a show called London Ink, which mirrors the Ink series here in the States.   One of the featured tattoo artists on that series is Molloy, the artist responsible for many of the tattoos of the Beckhams’.  Simply by tattooing a superstar like David Beckham landed his work in almost every magazine and newspaper instantaneously.  Molloy recalls, “It was a bit scary to be honest.  The problem with a lot of press, especially the tabloids, is that they write what they want to write. The word that kept cropping up was ‘outraged’; that people were outraged at this tattoo, as if they were rioting in the street. It’s absolutely rubbish but they were just trying to stir people up. You could argue that any PR is good PR, which to an extent it is, but sometimes there’s a negative side to it as well.”  Molloy understands that his six month long waiting list is due to the fact that he tattooed Britain’s other royal couple.  He adds, “It’s like an endorsement, isn’t it?”

When casting for London Ink, producers were convinced they wanted Molloy as a participant.  Victoria Noble, the show’s executive producer, says “And if you’re putting a studio together, you want people to be recognizable as well as having recognizable work and he’s worked with so many footballers and rock stars.”  Several considerable business offers have now come his way.  I could continue with examples, but let me get to my point.

As a manager, one should keep an open mind and look outside of the box of musicians and actors.  We know that more musicians are starring in films and more athletes are pursuing music and acting.  Everyone wants a piece of everything and they are being offered the opportunity to do it.  The last time I was at a department store, browsing in the perfume section, I noticed how many stars have released their own fragrance.  I mean, Justin Beiber perfume?  I guess so.  And obviously people are buying these things up, because otherwise more and more celebrities wouldn’t be creating their own.
 

So, I’ll leave you now with some food for thought.  Why not manage the unexpected? Why not manage these artists who have the potential to make it big, receiving offers of all kinds, but without guidance, would have no idea how to handle it all and steer their career down the right path? Dennis Dwyer, who heads up the Alliance of Professional Tattooists, says body art has become more mainstream during his 30-year career as a tattoo artist.  With the growth of the tattoo industry, I have to imagine more tattoo artists are going to go mainstream and be offered endorsement deals and the opportunity to launch their own products.  Why not cash in on that too?  I know I am going to definitely do some searching for the next big thing.  Who said it has to be an actor or athlete or musician?  Watch out because tattoo artists may very well be the newest competition, and an excellent opportunity for managers like myself.

Negotiation Techniques: Insight from a Trail Lawyer

 As a manager, one of my main duties is to negotiate.  I have to negotiate terms of contracts, payments, appearances, sponsorships, travel, transportation, advertising… you name it.  Negotiating is a never-ending part of my job.  The key is to know how to negotiate, what tools or strategies to use and when, and how to deal with the opposition in order to get what you want without upsetting the other party.

I figured a good way to learn the keys to successful negotiating would be to pick the brain of a trial lawyer.  Although this person deals more with federal litigation and white collar crimes, his 15 years of experience in the field in addition to his schooling allow him to offer great insight and advice, because let’s face it: Negotiating is negotiating, whether it’s for an actor, a criminal, or yourself. 

So, without further ado, when I asked Moe Fodeman, an attorney for Wilson, Sonsini, Goodrich, & Rosati in New York City, what his strategies are for successful negotiating, here is what he had to say:

“From my perspective, the key to successful negotiations is leverage.  Without leverage, you really have no shot at all shifting the negotiations in your favor because the other side can say just say "no" to you without losing anything.  You have to identify the other side’s weakness(es), make them understand those weaknesses are real and that they pose a significant risk.  So, for example, in my line of work, the key to negotiating to favorable plea agreements for criminal defendants is to make the government understand the shortcomings of their case (if there are any) and make them believe they could lose.
Beyond leverage, (since in the world of federal criminal defense, we very rarely have much leverage!), I find that the most important tool in successful negotiations, is to maintain credibility.  People know when you're trying to sell them a bill of goods.  And if they don't feel they can trust you, they're unlikely to move your way in a negotiation because they'll be too afraid that you're trying to get over on them.  The other side has to believe you when you tell them their case is weak, or that your position is strong, or that you are prepared to walk away from the negotiations.”

Moe Fodeman is currently representing me and one of my entertainment clients.  I have seen him at work and in the line of duty, and on top of what he has to say here, I think another key to successful negotiating is being personable.  Moe is outgoing and likeable.  He makes it difficult to say no. 

So, in summary, I recommend going into a negotiation with confidence, but not too much that you ruin the rapport you have built with the opposition.  Listen, respect the other party, and work together to come to an agreement.  And if all else fails, hire a lawyer!

How the government influences a film’s location

What are they and how do they work?

I guess the first question to tackle is if the government influences such a decision.  Coming across an interview about state tax stimulus packages, stimulated me enough to do a little digging.    Basically, states are now in competition to lure productions their direction by offering tax incentives.  According to the Film Tax Incentives website, tax incentives are the new backbone of film financing equations and can be offered as tradable tax credits, refundable tax credits, film tax rebates and reductions in state taxes.  To put it more simply, if producers find it economically beneficial to film in a particular state because they have to pay less money to the government and therefore have more money to put towards their project, chances are, they’re going to take the state up on its offer.   In 2008, productions that were shot in Michigan could be reimbursed by the state for up to 42% of their expenses.  That’s like making a movie for half price.  All of a sudden, filming in Detroit versus Los Angeles doesn’t seem so bad.

How they started

These tax incentives originally came about in order to lessen the number of “runaway productions”- projects that went overseas to film because it was cheaper.  Although not overseas, Canada was the most successful, which built Vancouver and Toronto into major North American Production Centers.  The States started coming up with tax based incentive programs in order to keep the jobs at home.  What ended up happening was states like Louisiana, Michigan, and New Mexico began making it seem so appealing to bring a project to their state that they saw an influx of applications by producers desperately trying to get ahold of some of these tax credits.  Although the state governments were offering hundreds of millions of dollars in incentives, the benefit and effect of luring these productions their way began paying off dramatically in the long run, at least for the most part, but we’ll get to that later.   

The benefits of local production

The rapid influx of millions of dollars into local economies served as lucrative economic stimulants that the governments, film industry, and local beneficiaries of the tax incentive found highly desirable.  For instance, Louisiana has established themselves as a top competitor and has landed tons of deals, third only behind Los Angeles and New York City.  And because of the experience they are gaining from having so many films produced in their state, more than 50% of projects are local productions, using Louisiana film crews and facilities, which shows what kind of impact the tax breaks can actually have.  Nick Paleologos, former head of Massachusetts’ Film Office until December of last year, pointed to the $452 million spent by movie productions in the state in 2008, but says that’s not even close to capturing their full impact.  In addition to the jobs they generate, he talks about the “multiplier effect”- the money spent by film crews on hotels and restaurants and other services that keeps cycling through the local economy.  He also talks about the interest generated for a particular location if a film is produced there.  The trailers and lights and cameras and “movie stars”… it’s all very exciting, especially if you’ve never experienced it before.

Poor California

So, as states wave incentives under the noses of producers, we can’t forget about the people being left behind- the original film crew- those in California.  Although Hollywood and cinema go hand-in-hand, 40 other states are after the industry due to the economic gain it brings.  Ironically, California had to follow suit and offer tax incentives so films would stay.  The program in California began three years ago and is up for renewal this month.  The Motion Picture Association of America commissioned a study that determined that California’s tax breaks generated 20,000 jobs and contributed $200 million in state tax revenue.  With the state’s deficit however, some people wonder if it’s worth it to set aside $100 million in tax breaks.  

Are they worth it?

Several other states have scaled back on their packages as well because facing unprecedented fiscal pressures, some lawmakers question whether handing out dollars to Hollywood is the best use of increasingly limited public funds.  According to the Associated Press, all totaled, states issued $1.8 billion in incentives and tax credits from 2006-2008.  That’s a lot of money on the table, especially since there have been some issues about how the money actually was spent.  For instance, currently, Tom Wheeler, once head of the Iowa Film Office, is on trial for allowing the misuse of funding.  He inadvertently cost the state millions in legal liability and lost economic development.  And remember Nick Paleologos?  He is now the former head of the Massachusetts’ Film Office after being booted due to controversy and abusing his position.  Some people just can't seem to handle all of the money and subsequent power that comes with it, which has proven to have devastating effects on certain states.

The downside

But there’s a major downside to pulling the funding.  After creating all of these jobs, if a state stops offering incentives to production companies, causing movies go to cities that are offering incentives, all of the local people relying on working on those projects will be jobless.  And here's the irony:  You'll have these people standing in line at the unemployment office, collecting government dollars, instead of paying taxes and working on a project that could be generating significant money for the government instead.

Where do we go from here?

So, as our country continues to battle the impending doom of the national deficit, each state’s decision as to whether or not to offer generous tax breaks, and if so, for how much, remains a debate.  Although I personally think it’s exciting and healthy to see productions spread throughout the nation, there is still just something that makes movies and Hollywood seem right.  But, these tax incentives seem to be too enticing for many states and most producers to pass up.  I’m going to have to fit my clients with radio tracking devices just so I can locate them while they’re working.  Either way, I’d like to think it’s safe to say that Hollywood will always remain the entertainment hub of the world, which means managers like myself will still have a home base.  With technology these days, all communication can be done remotely, but I’d much rather have a reason to live by the beach than to bare a Midwestern winter.