Going Remote in the Face of Coronavirus

As COVID-19 continues to wreak havoc, the pandemic has accelerated the deployment of remote-working options to such an extent that many clients and production companies may never look back.

In the past, production companies lost out on projects because either the client didn’t want (or was unable to) fly out for the shoot. But what if they can see what’s happening on-set from their office? Streaming the live camera feed from the shoot directly to clients might be the best solution to keep productions moving forward.

While the concept of streaming video has been around for quite awhile, it seems particularly relevant now for film and television productions. Clients don’t have time want to wait for months to have health concerns resolve themselves. They’re on a tight delivery schedule. And travel expenses are always an issue in any production budget. With the right streaming technology, clients can get their projects shot on their timeframe and save money in the process.

The first step is determining what the client wants to view. Do they need to see the camera feed or just dailies throughout the day? The choice will affect the amount of remote workflow involved. In either case making your Video Assist the point person is a must. While the main role of the Video Assist is to provide playback to Video Village, they are ideally positioned to get your video footage to remote clients.

With the abundance of streaming technologies in the market, there are many different options to choose from. Let’s talk about three of the most common solutions.

Video Conferencing

Many services provide video conferencing, including SkypeZoomGo-to-Meeting, and BlueJeans. These services generally have fees associated with them, so research carefully and make the client aware that they will be responsible for this additional expense. Note that the on-set bandwidth of the wireless network plays a major role in video quality. Recorded video looks much better than streaming video on these services and can affect the way the client responds to the work.

Also note, many wrap-up insurance policies do not cover transmission failure. Given that, you should identify this activity in the special risks exhibit of the wrap-up insurance addendum, and/or have the agency indemnify you for costs and delays related to transmission.

Video Streaming

Live video streaming from set is a popular choice but like video conferencing, it requires a steady and reliable internet connection on location. Most streaming options offer the ability for client, agency and other team members to join and watch video shoots in real time. The difference comes in whether the solution is hardware-based, app-based or a combination of the two.

At the low-end, the elgato Cam Link 4k is effective and simple. It has an HDMI port on one side and a USB port on the other. When you plug the camera into the HDMI port and the USB into the computer, your camera will show up as a webcam. Stability is an issue, however, as this system requires occasional restarts for no apparent reason.

For a more substantial solution, Blackmagic Web Presenter is a hardware-based solution that gives you multiple input options that you can switch between. Similar to the elgato Cam Link, you need to plug in the HDMI in and connect the USB into a Mac on set, running FaceTime. The Web Presenter then becomes the “WebCam” for almost any popular streaming software (YouTube Live, Facebook Live, Twitch, Skype… even FaceTime). Any number of viewers using their phone, tablet or laptop can call in and watch the video. It also has USB interface for audio equipment, so you can hook your mic into it.

Using video assist hardware like QTAKE is another popular option. QTAKE has been used for years to stream video playback on sets where camera location and Video Village are separated from one another. Numerous vendors push the QTAKE video output to the cloud so clients in other locations can view the footage with a web browser. By installing a steady and reliable Satellite Internet connection on location, we’d be able to set up a VTR, switcher and encoding service such as LiveU or AWS Elemental to upload a feed to any streaming platform available

Turning to web services, Virtual Village provides an internet-based portal that securely delivers video to any internet connected viewing device. Stream to your phone, tablet, laptop or set up your own village in a client’s office. Virtual Village even offers concierge service! Although only currently available in popular filming destinations like Los Angeles and New York City, and countries like Mexico, Brazil, New Zealand and Spain, they say that their system can be implemented wherever you need it.

On the software side, OpenReel is an app that enables producers to remotely capture and live direct video anywhere. The technology allows footage to be recorded locally on your device, ensuring that the full quality is recorded and then is sent directly to the cloud. It works on both Apple and Web-based platforms, allowing you to remotely pair with another phone or tablet. Quality control, video and media teams control capture, and you can drop into editing right from the app.

Immediate Dailies

Dailies have been part of filmmaking since the dawn of the industry. Digital technology has impacted the way dailies are processed, making them downloadable and streamable. Now companies like Moxion provide software to share your dailies with all crew – on and off set, across multiple units – instantly. Using QTAKE, clients can review footage from set instantly on any device or even via their Apple TV app.

As an added benefit, editors can start editing seconds after the camera has stopped recording, allowing them to quickly share assembled edits back to the Director on set. That aids the creative process and dramatically reduces the cost of pickups later in production.

Remote Postproduction

Remote postproduction is fast becoming a viable (and sometimes preferable) workflow for many teams these days, according to Frame.io. For editing, platforms such as Frame.io, Vimeo, Filestage.io, Wipster and others provide tools for version control, change requests, tracking status and approvals. This can make it easier to communicate with clients, complete revisions faster, and have higher-quality content out the door quickly.

Remote post also works well for VFX studios. For smaller VFX teams, they can upload assets to an off-premises destination, where artists can easily download what they need to their home computer and upload their final shots or elements. Larger studios may have their teams access a VPN to connect remotely to their on-premises workstations and use a remote desktop solution like Teradici.

Take a cue from people who have already implemented remote workflows. Flourishing communities for post professionals to network and join projects already exist, from Blue Collar Post Collective to the Editors Subreddit.

Costs Involved

As far as cost is concerned, there’s a wide range of available pricing. Depending on what you’re looking for, you can find streaming options for anywhere from $250 to $10,000. With such varying price tags, it’s important you know exactly what you’re getting. As you talk to vendors, be sure to ask these questions:

  • What’s included in the quoted price?

  • Additional costs for increased viewership or storage?

  • Additional costs for extra features?

  • Startup costs such as cameras and equipment or one-time fees?

Film and video production has been behind the curve in using remote working technology compared to other industries but that might change in the post-virus world. Workflows that free staff and crews to focus on higher-impact creative tasks will allow production companies to leverage the best talent – wherever they are in the world.

 

Production Incentives Update: Where We’re Going in 2020

Whether they are a financial godsend or a revenue burden to states, all agree that film and television production is booming due to film incentives and tax credits. The challenge for any producer is to stay up to date as incentives are in a constant state of flux… or disappear entirely. Here’s the latest on some of the notable state film and television incentives.

California: 3.0, Here We Come

California is about to have a slew of new changes to its production incentive offerings, with the Film & TV Tax Credit Program 2.0 ending in June 2020 and Program 3.0 launching in July. The Golden State will get $330 million to go into their incentives pot. Finally, independent projects with budgets under $10 million will have their own basket of credits to pull from. This is a major development, as the current program has large and small independents competing for the same film incentive funds, sometimes to the detriment of the smaller ones.

California will also roll out a new career-based training program as well as having a new requirements showing efforts to hire more women and minorities on productions. Production must also sign a pledge condemning any sexual harassment on the job.

The state will additionally have a brand-new incentives bonus for areas outside Los Angeles. This has become a trend happening in more and more states. It helps spread production through a state and create good faith for legislators whose districts lie outside a production area. Look for The Golden State to see an increase in independent production next year, due to these filming incentives enhancements.

Georgia: Winds of Change

Georgia’s generous tax credits have sparked a billion-dollar production boom but there are signs that might change. State Republicans are looking at reducing film production credits — the largest pot of tax incentives offered by the state — as a way of avoiding some of the serious cuts to a $27 billion state budget ordered by Governor Brian Kemp.

While Georgia’s incentive program is not the richest in the land, their tax credit system has no cap and is easy to apply for. All you have to do is slap on the peach logo! If that were to change, Georgia’s status as a film hub would be in doubt. Keep an eye on the upcoming legislative fight over incentives.

Illinois: On ‘Chicago Fire’

In an effort to attract more film industry jobs and spending, Governor J.B. Pritzker signed legislation last year extending film tax credits through 2026. The incentives, which give companies 30% tax credits on production costs and salaries, were set to expire in 2021. It’s good news for a state that needs good news after so much bad publicity. Studios look at every dollar spent and as Dick Wolf, creator of Chicago Fire, Chicago P.D. and Chicago Med had told the governor earlier this year that “if the tax credit goes, we have to go.”

Louisiana: Blue Bayou

Louisiana continues to be a tempting destination for film and TV producers and the state’s 25% – 40% tax credit, which is partially refundable, usually seals the deal. However, much like Georgia incentives are getting a push back in certain circles. A study last year shows that taxpayers are losing roughly two-thirds of the money they put into the state’s film tax credit program. With repeated budget shortfalls and cut spending in areas like health care and education, the Louisiana legislature could turn its attention to “Hollywood on the Bayou” for answers.

New York: Start Spreading the News

New York recently had some welcome news for branded content specialists as in 2020, they will allow for online commercials to qualify for the New York Commercial production incentive. This forward-thinking expansion will broaden the New York incentive outside the traditional broadcast commercials they currently cover. New York also made a slight change for tax credit programs which affects the overall credit allocation. Any New York credits dispersed in 2020 will have a .025% reduction applied to them that will in turn cover diversity job training in the state.

Montana: Incentives Are Back in Big Sky Country

Montana’s production incentive came roaring back earlier this year. The state resurrected a transferable film tax credit that provides a tax credit for 20% of production costs for projects shot in Montana. A trifecta of bonuses can bring that film credit up to 30% and even higher. They have a low minimum spend of only $50,000 and $5 million in the incentives tank, ready to go for productions in the area.

Mississippi: Re-Incentivizes Non-Resident Labor for Productions

Mississippi had become one of the forgotten states for production in the last two years since their production incentives program stopped qualifying non-residents working in the state. However, in April of 2019, they brought that element of the incentive program back, allowing non-resident payroll to be considered as part of base investment and eligible for a 25% rebate. Expect production to increase in the state as a result.

New Mexico: BACK ON TOP with Latest Incentives

As one of the first states in the U.S. to offer production tax incentives, New Mexico continues to lead by example. As it stands now, New Mexico offers 25% in a refundable credit on any qualified-spend items purchased through New Mexico vendors, as well as any New Mexico resident wages.

The 25% tax incentive is also applicable to nonresident talent, given certain criteria are met. Best of all, New Mexico does not have a minimum spend, which makes it even more attractive to independent productions. The funding cap also doubled, from $55 million to $110 million.

The new version of the tax incentive retains the 5% TV bonus. So as long as a show has at least six episodes and spends $50,000 per episode in the state, producers can realize a combined return of 30% in refundable tax credits. Veteran shows like Better Call Saul and Longmire continue to take advantage of this offering. Pilots may be able to capitalize on the TV bonus incentive as well.

OTHER STATE Film Incentives Get Fund Increases

Pennsylvania received $5 million increase to their already impressive $65 million funding pool. Hawaii managed a massive 43% increase to their $35 million cap, ending at $50 million and with hopes for more next year. Rhode Island also received a $5 million bump to their $15 million pot. Illinois has extended their program to 2026, Arkansas extends theirs to 2029, and Ohio continues to fund its program.

Colorado’s production incentive recently received a much-needed boost to its film funding program, adding $1.25 million to the pot. They now have a $2 million dollar funding cap on a solid rebate program. Applicants can still get 20% on all labor and spending incurred in the state. They hope the bump will bring some new shows to the area and give rise to an even larger increase in funding next year.

Making Their Way Back

North Carolina and Florida are working hard currently to bring work back to their filming communities with help from their production incentives. We look forward to tracking their progress in 2020 and beyond.

 

 

How California’s AB-5 Law Affects Filmmakers

Everyone has been wondering how the new bill enacted to classify Uber and Lyft drivers as employees would affect California’s gig economy. It turns out ripples produced by the law will be felt throughout the entertainment industry as well. Effective as of January 1, 2020, AB-5 (Assembly Bill 5), will restrict the hiring of employees on 1099. Rather than making a law targeting specific companies, legislators in Sacramento basically outlawed all independent contractors with few exceptions.

AB-5 will have jurisdiction over California residents as well as any employees required to perform significant services in California, regardless of their home state. Additionally, even companies that conduct the majority of their business outside of California would still be subject to AB-5 for any worker performing services in California.

The new law will likely have some effect on every film and television production. While major studios should be able to move forward unscathed, smaller production companies and indie filmmakers will feel the brunt of the law. By forcing these individuals to designate everyone they hire as an employee, it will increase costs by up to 30 percent. That’s quite hit for profit margins!

Who’s a Contractor Under AB-5?

AB-5 places a bigger burden on employers to prove that their short term workers are not employees. But just because the law will make it harder for independent contractors to be classified doesn’t mean project based work will cease. AB-5 is merely changing the labor test used by the state of California.

Prior to the law, California adopted the Borello test to determine whether workers were employees or contractors. The new bar to cross will be The ABC Test. Already used by U.S. Department of Labor, the ABC Test assumes a worker is an employee unless the employer can prove there is an absence of control, the worker’s business is unusual compared to the employer’s, and the worker is customarily engaged in a similar trade with many other business entities. Employers who mis-classify their employees as contractors can expect fines for doing so.

How Does it Affect Union Productions?

Most work for major studios and production companies is covered under collective bargaining agreements, with workers being classified as payroll employees. For this reason, entertainment industry unions don’t see the legislation affecting their members.

In a joint statement by SAG-AFTRA, WGA West, IATSE, Hollywood Teamsters 399, and Studio Utility Employees Local 724, the unions made it clear that they do not think AB-5 will affect the industry:

“We have carefully monitored this legislation as it was drafted and moved through the California Legislature… During that time, we conducted due diligence within our own guilds and unions, with outside tax attorneys, CPAs, and entertainment lawyers knowledgeable about our business and loan-out companies, and with legislative staff in Sacramento. These conversations were all undertaken to ensure that AB5 would not undermine the rights secured by our collective bargaining agreements, including the right to form and utilize loan-out companies.”

How Does it Affect Non-Union Productions?

The broad scope of AB-5 should be a warning for all non-union projects in California. Under the ABC Test, the majority of the cast and crew of a production will be viewed as employees considered to be under the company’s control.

Having a call time could be constitute “control.” Working as an actor could be construed as usual to the business of a production company. Collaborating with the same people often could demonstrate that you are dependent on that one job, and therefore, an employee.

The broadness of AB-5 is problematic and should signal to employers that they consider updating the classification of their workers to employees.

Does it Affect Me if I’m not in California?

You might think this isn’t relevant to you because you don’t produce films or videos in California. While that is true for the present, you should still pay close attention because historically, wherever California goes, other states often follow. Here are a couple of examples:

  • In 2004, California was the first state to mandate paid family leave at work. Many other states were quick to follow including Rhode Island, Washington, New Jersey, and New York.

  • In 2016, California was the first state to pass a $15 minimum wage bill. More than a dozen states have since done so too.

So, while other states have not yet passed an official law similar to AB-5, it is predicted that many states will follow.

Going Forward

Although there are many way to address AB-5, from fighting it in court to making all your contractors become LLCs, I believe taking these three simple steps is the best approach.

Modify your agreements. Adjust all independent contractor agreements currently being negotiated to include a clause regarding what may occur when AB-5 goes into effect. This clause would include language stating that all payment obligations still apply, that the employer still has a right to all content and services agreed to, and that terms shall only change as necessary to comply with AB-5.

Add a production fee. Add an additional 15-20% per new employee into your new quotes so your production doesn’t take a hit. If asked, “why?” explain that the government doesn’t see film teams as independent contractors any more so we have to pay them more. It’s not ideal, but it is simple.

Hire a payroll company. Although you could hire extra crew members to manage your payroll, entertainment payroll companies are better equipped to deal with AB-5. They can onboard workers as short term employees easily and serve as their employer of record, saving you the hassle of dealing with the changes.

Final Thought

As with any legislation, the effects can never be truly known until after a law is applied. But even if changes to the law come quickly, AB-5 will be law for at least a full year before any new exemptions are carved out. Companies must be ready to comply on January 1.