Independent filmmakers must operate like small businesses if they want to receive funding to produce their work, federal and state production tax credits and rebates, legal protection from piracy and support from federal and local lawmakers who recognize the economic impact of film making.
This was the consensus reached by industry stakeholders, attorneys, advocates and lawmakers Thursday at an independent film summit on held Capitol Hill as a kick-off to the 2011 DC independent Film Festival in the nation's capitol.
"Indie filmmakers have to present themselves as small businesses that generate jobs in the local community," said Washington, D.C.-based media and entertainment lawyer Paige Gold.
With nine out of ten of the 2011 Oscar "Best Film" nominees starting out as independent productions, filmmakers need to recognize the impact their productions create on the industry as well as local economies and how to use these statistics to generate support.
"For every $63 million in production spending, 1,000 jobs are created," said Noel Paynter, who operates Tax Credit Funding, LLC in Georgia, which helps producers navigate the process for participating in the state's $1.3 billion production tax credit program.
Paynter says economic impact studies on production in Georgia have found that the state gets back $1.90 for every dollar spent on production.
Gold says that as the industry enters the digital age, there will be an even greater impact on the economy.
"We can't overestimate the long-term influence of digital conversion on this industry," she said. "If Congress wants to grow the economy they need to understand how media enhances local economies."
Filmmakers should view state film offices not only as places to get filming permits, but as business partners.
"It's about revenue generation, employment and labor," said Rita McClenny, vice president of industry relations and film, for the Virginia Film Office, which offers $2.5 million in incentives. "Back in the day it was about service, but now a part of [our work] is about the incentives."
While the Virginia Film Office courts major studios, McClenny says, it also wants to support local filmmakers so that that they don't go elsewhere to make their film. In 2013 Virginia will open its services, tax credits and rebates to the video game industry.
The reason why. "They lobbied the governor for it," she said.
In addition to dining, hotel, construction and other industries directly and indirectly affected by film production, independent filmmaking also enhances tourism, Gold said, citing examples of the "Sex in the City" tours in New York and the 65,000 people who annually flock to Dyersville, Iowa to visit the production site of the 1989 baseball film, "Field of Dreams."
The summit also featured remarks from U.S. Rep. Brad Sherman (D-Calif), who is chairman of the Congressional Entertainment Industries Caucus. Sherman discussed efforts within the caucus to make the U.S. film production tax credit more competitive with incentives offered to filmmakers from countries including France, Canada and New Zealand. He also reviewed the caucus goals and efforts toward preventing piracy and loss of revenue for U.S. works.
"We found one study that says that the United States is losing $27 billion a year due to the theft of intellectual property," Sherman said.
In addition to advocating for incentives and protection from piracy, Ernesto Falcon, director of government affairs for Public Knowledge, said independent filmmakers need to remain aware of the latest developments on "net neutrality" a policy that its supporters say will promote a level playing field in the digital space. Filmmakers must advocate their position as the legislation is developed.
"You have to contact your member of congress and your U.S. senators," Falcon said.
"Politicians respond to organizing," agreed Robert Bettmann, chair of DC Advocates for the Arts. "It's important that groups organize and advocate...If you don't, who's going to protect your interests."
The DCIFF continues through March 13.
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