Hard News by Russell Brown

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Hard News: Movie Disaster

150 Responses

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  • SteveH, in reply to Kyle Matthews,

    After all farming seems to have survived OK losing (financial) subsidies.

    When did that happen? The government was making drought payments last summer wasn't it?

    Since Sep 2009 • 444 posts Report Reply

  • Sacha, in reply to bmk,

    The investment is likely to come from banks

    only if you are buying a house

    Ak • Since May 2008 • 19518 posts Report Reply

  • Sacha, in reply to Chris Waugh,

    China can do any kind of manufacturing, NZ needs to focus on the niches it can do better than the rest. Screen production would seem to be one of those

    Quite. Exchange rate engineered to prop up housing mortgage market can undermine that as we're seeing. Stoopid govt.

    Ak • Since May 2008 • 19518 posts Report Reply

  • Kyle Matthews,

    When did that happen? The government was making drought payments last summer wasn’t it?

    Well I don't particularly think the government should do that either. An industry wide fund which provided relief when a region was suffering under some sort of weather would make sense to me.

    But one-off drought relief isn't the same as ongoing subsidies on everything, which is what farming used to get 30 years ago.

    Since Nov 2006 • 6242 posts Report Reply

  • bmk, in reply to Sacha,

    Not quite. While banks like equity in the form of a house. Many businesses also borrow from banks - usually against plant/stock or even the accounts receivable ledger. But businesses do obtain credit from banks - usually not venture capital but that's a different story.

    Since Jun 2010 • 327 posts Report Reply

  • Sacha, in reply to bmk,

    Many businesses also borrow from banks - usually against plant/stock or even the accounts receivable ledger.

    Or against, you guessed it, a house.

    Ak • Since May 2008 • 19518 posts Report Reply

  • bmk, in reply to Sacha,

    Or against, you guessed it, a house.

    True that's the most common thing. And that's what makes it such a vicious circle. House prices need to drop but they can't as it would involve so much more than homeowners' precious equity; it could potentially lead to a chain of business failures as banks withdraw lending to businesses if equity in the secured houses drop. And of course when one business fails then it flows on and many more fail due to the failed businesses not paying their debts.

    This means that any concrete effort to actually lower house prices risks an economic crisis. Banks know this so banks don't fear government policy leading to lower houses and thus see a house as prime security. And since banks see a house as prime security the demand for them increases as does the price.

    Since Jun 2010 • 327 posts Report Reply

  • Sacha, in reply to bmk,

    This means that any concrete effort to actually lower house prices risks an economic crisis

    Quite. Don't envy anyone unravelling that one - yet we must. Also means our banks are quite weak at understanding and valuing risks/opportunies that are not in real estate.

    Ak • Since May 2008 • 19518 posts Report Reply

  • Sacha, in reply to bmk,

    And since banks see a house as prime security the demand for them increases as does the price

    safe as

    Ak • Since May 2008 • 19518 posts Report Reply

  • Kumara Republic, in reply to bmk,

    Scrapping farm subsidies in the mid-1980s caused a lot of angst, to the point where sensationalist reports of farmer suicides popped up. In the long run, though, the farming sector self-corrected and subsidies are now an old joke. I suspect any major upheaval of the NZ housing market would go through a similar turbulence.

    In America, the housing market collapsed several years back for 2 principal reasons: the sub-prime meltdown, and oil price spikes turning Americans away from suburbia.

    The southernmost capital … • Since Nov 2006 • 5382 posts Report Reply

  • Rose Worley,

    Hey All,
    I have started a petition, please sign if you support. "Save The New Zealand Film Industry"
    Cheers
    http://www.thepetitionsite.com/595/507/688/save-the-auckland-film-industry/#

    New Zealand • Since Nov 2013 • 1 posts Report Reply

  • Kumara Republic,

    Rumours of the Wellington film & TV industry's demise may have been exaggerated. NZ On Air funding was involved, so that needs long-term reinforcing.

    The southernmost capital … • Since Nov 2006 • 5382 posts Report Reply

  • Jason Kemp,

    To summarise then – there is no real strategic plan for the NZ film industry even though it employs ( or as contractors) up to 40,000 people. Yes NZ has benefitted in a number of ways by having some of that money invested in equipment and infrastructure but quite probably much of it has gone to pay for skilled people.

    Increasing the subsidies paid to get the large productions here seems unsustainable given the huge change in exchange rates for the NZ $ and all the other competition out there.

    Like many other sectors the size of this one is almost certainly distorted by the big blockbusters. In sales terms that is called shooting an elephant. There are only so many of the block busters to go around and that isn’t going to work.

    The hard part for people working in the industry is transistioning to something else or moving overseas to where the films are being made.

    A strategic plan for the NZ film industry might be able to get a clearer idea of how big of a sector we can use and look to developing local global content where the IP is owned here. Like the “Mighty Johnsons” only more of them perhaps financed by cable networks and more like “Flight of the Conchords”

    Possibly this link has already been mentioned.
    Nats won’t rule out Avatar sweeteners

    Auckland • Since Nov 2006 • 358 posts Report Reply

  • Graham Dunster, in reply to Kumara Republic,

    Auckland • Since Nov 2009 • 184 posts Report Reply

  • Jason Kemp,

    It sounds like the film industry is one which is sufficiently different to say farming or manufacturing which would benefit from some strategic insights by government.

    15% of nothing is nothing. The rebates apply to projects that would otherwise not be in NZ.

    And yes Australia has a higher rebate but the exchange rate is less favourable. I wonder what the various Au states are doing about this. I'd guess they have more local drama to make.

    On a more positive note ( maybe)

    MediaWorks TV Chief Executive Paul Maher said the move freed up cash to invest in local programming.

    "So while there will be some scheduling changes in the short term, we have a much stronger financial position from which to aggressively target the programmes our viewers want," McGeoch says.

    from Fox loss challenge for Mediaworks programmers a programming disaster at TV3/4 could create an opportunity?

    However what they think their viewers want is more reality tv awash with product placement.

    There has to be some icy roads near Queenstown for a local ice road truckers surely.

    Auckland • Since Nov 2006 • 358 posts Report Reply

  • Jeremy Andrew,

    Coming soon on TV3 - Desert Road Truckers!

    Hamiltron - City of the F… • Since Nov 2006 • 900 posts Report Reply

  • Tim Michie,

    Well, two birds with one stone, I'd watch The Timpsons...

    Auckward • Since Nov 2006 • 614 posts Report Reply

  • Kumara Republic, in reply to Jeremy Andrew,

    Coming soon on TV3 – Desert Road Truckers!

    Followed by Bumfights: Paremoremo!

    The southernmost capital … • Since Nov 2006 • 5382 posts Report Reply

  • Jeremy Andrew,

    The Jervois Key Shore

    Hamiltron - City of the F… • Since Nov 2006 • 900 posts Report Reply

  • Kumara Republic,

    Can't help but think that the tone of this article screams out, "attacking the symptom".

    The cost of piracy to New Zealand

    The southernmost capital … • Since Nov 2006 • 5382 posts Report Reply

  • Kumara Republic, in reply to Kumara Republic,

    Oops, munched link.

    DomPost: The-cost-of-piracy-to-New-Zealand

    The southernmost capital … • Since Nov 2006 • 5382 posts Report Reply

  • Simon Bennett,

    And TVNZ have announced today that Nothing Trivial will not be renewed. Another NZ TV drama series comes to an end.

    Auckland • Since Nov 2006 • 166 posts Report Reply

  • Geoff Lealand, in reply to Simon Bennett,

    Oh, bugger!

    Screen & Media Studies, U… • Since Oct 2007 • 2520 posts Report Reply

  • Michael Duignan, in reply to Simon Bennett,

    It really is a perfect storm for the NZ film / TV industry right now. On the one hand the high NZ dollar and uncompetitive tax rebates. And on the other we have collapsing TV ratings and local funding mechanisms (both NZFC and NZOA) which are looking out of date with how content is being consumed. In the case of New Zealand On Air, we are reaching the point where we only have one viable TV network (Tv3 teeters on the edge) and it refuses to commission any significant drama because it just doesn't rate any more. Will NZOA stand on the sidelines as local writers / actors / directors / crew disappear? I personally think that increasing tax rebates would only work for a year or two, but Steven Joyce talking about "owning IP" is meaningless unless their is significant reform of funding for local content - most importantly by developing incentives to create truly high quality, niche content for the international market.

    Since Oct 2010 • 18 posts Report Reply

  • Sacha, in reply to Michael Duignan,

    but Steven Joyce talking about "owning IP" is meaningless unless their is significant reform of funding for local content - most importantly by developing incentives to create truly high quality, niche content for the international market.

    Sadly, Joyce wouldn't know an international market if it munched his arse. The perils of putting a provincial radio/travel agency hack in charge.

    Ak • Since May 2008 • 19518 posts Report Reply

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