lights camera nevada_a strategic plan for the nv film office

D e v e l o p e d b y S i d n e y O s t e r

O c t o b e r 2 0 1 3

A Strategic Plan for the Nevada Film Office

Lights, Camera, Nevada!

EXECUTIVE SUMMARY

| PROPRIETARY AND CONFIDENTIAL 3

Situation Analysis • Movie and television production in the U.S. is becoming increasingly competitive, with the

number of states offering motion picture incentives increasing almost ten-fold since 2001 • States such as Georgia and Louisiana have experienced enormous gains to the number of

productions in part due to generous, and uncapped, incentive programs • Additionally, other states such as Texas have increased their motion picture incentives

• California, while still by far the leader in motion picture production, has seen its lead slip relative to other states as productions move to lower cost areas

• Incentive programs provide obvious benefits; however, the merits of such are being more rigorously debated and several states have abandoned their programs in recent years

Opportunities and Risks • With the recent passage of the Nevada Motion Picture Jobs Creation Act, Nevada is poised

to better compete with other states • Other opportunities exist to gain market share. For example, uncapped incentive programs

and rising costs in competing states could lead to program sustainability issues. Additionally, according to the Wall Street Journal, North Carolina’s recently approved budget for the next two fiscal years lets their incentive program sunset on Jan. 1, 2015

• The Nevada Film Office (NFO) needs to demonstrate a positive return on the state’s motion picture incentive investment, have a clear understanding of its competitive advantages (and disadvantages), and develop a solid plan for short-and long-term success

A Competitive Plan for the Nevada Film Office • My “Lights, Camera, Nevada!” plan is an initiative I developed for rapidly preparing the

Nevada Film Office for the upcoming implementation of the incentive program, and for building a solid foundation for success and long-term positive ROI

SWOT ANALYSIS


When considering what steps the NFO should take over the next 90 days and

beyond, I have evaluated the internal and external factors – strengths,

weaknesses, opportunities and threats (SWOT) – which can impact the NFO’s

ability to maximize motion picture revenue for the state.

Strengths

• Established in 1983, the NFO has a long

history, with $2b in revenue for the state • Nevada is close to CA, has no state

income tax, is rich in unique natural locations, and boasts major tourism draws

• Productions in NV up ~9% in 2012 • An established and growing infrastructure

for film making, including the oldest state-sponsored screenwriting contest of its kind

• Talented and experienced team members

Opportunities

• New incentive program in Nevada which increases the state’s competiveness

• Expansion of NFO team, new leadership

• Uncapped incentive programs and rising costs in competing states could lead to program sustainability issues

Weaknesses

• The NFO lacks an effective social media presence on Facebook, Twitter, etc.

• Total production revenue decreased 13%

in 2012 and is down over 40% since 2001 • The NFO has a small team relative to

competing states, for example TX has 12 and LA has 9

• Lower financial incentives in NV with a lower cap than some other states (see

map on following slide)

Threats

• Increased competition from other states with greater resources than NV

• $20 million funding cap that may discourage larger productions and those employing union workers

MOTION PICTURE PRODUCTION TAX CREDITS BY STATE


The map below from the Wall Street Journal illustrates the competitive

landscape for motion picture incentive programs in the U.S. More than 25

states currently have higher production tax credits than Nevada.

90-DAY PLAN SUMMARY


Days 61-90 Engagement

Days 31-60 Outreach

Days 1-30 Information

The first thirty days will be focused on updating and developing information resources to help production companies film in Nevada, for the local businesses that support them, and to allow the NFO to better communicate with and engage with those in the industry. These activities include:

• Updates and corrections

to the NFO website

• Improvements to online information and resources for production companies and local businesses

• Develop directories of all local motion picture production resources

The next thirty days will be focused on building awareness of the NFO and on contacting production companies and local motion picture resources to begin introducing the NFO to them and to determine how the best serve them. These activities include: • Directly reaching out to

production companies and local resources via email and phone

• Improving the NFO’s social media presence

• Creating and sending surveys to determine how to better increase and serve movie production in Nevada

The final thirty days will be focused on directly engaging with the movie production industry to educate them on the incentive program and local resources, and what they need to know about filming in Nevada. These activities include: • A “roadshow” for direct

meetings with major production companies

• Webinars for information about the NFO and the incentive program

• Distributing the new quarterly NFO newsletter

• Establishing 2014 plans and goals for the NFO

My 90-day plan for the Nevada Film Office involves three progressive plans of

action – Information, Outreach, and Engagement – as summarized below:

30-DAY PLAN, INFORMATION – WEBSITE UPDATES


To prepare for the implementation of the incentive program, the NFO must be able to provide the movie production industry and local businesses with access to accurate and useful information. Immediate steps include:

• Updating the NFO website – the NFO website currently contains a broken link and an empty page. For example, there are no industry jobs listed on the page, and when navigating to the Location Database page from certain other pages, it shows as “Coming Soon” when it

already exists (see graphics to the right)

• Additionally, on the “Info on Permitting” web page, a bar states the “new” office hours for the City of Las Vegas as of January 2011. Remove the date

• Reaching out to other websites to update

information about the NFO and the NV incentive program. For example, the Motion Picture Association of America states that NV

has “no significant tax incentive for production”

30-DAY PLAN, INFORMATION – ONLINE RESOURCES AND DATABASES


Additionally, the NFO must develop the online resources required to communicate with and to support the industry, making production in the state as efficient as possible. Areas of focus can

include: • Weather information, industry news, local

events calendars (festivals and conferences), state organization & unions

• Information on productions industries in Nevada, state property use, location services, relevant laws, etc.

• A comprehensive directory of freelance individuals, companies and associations from the film, television, commercial, and video

game industries • Jobs resources, such as crew and casting calls • Improving the NFO’s locations database with

more relevant search functions and better photographs

• Developing certification workshops to be

provided through webinars, iTunes, etc.

60-DAY PLAN, OUTREACH – INDUSTRY CONTACT AND SURVEYS


During the second thirty days, the NFO should

be focused on contacting those in the motion picture industry and local businesses to introduce the NFO and the incentive program to them. Additionally, the NFO should determine from them any challenges to motion picture

production in Nevada. For example: • Begin the process of reaching out to film and

TV production companies such as CBS, AMC, and Endemol, to inform them of the upcoming roadshow and webinar schedules

(see the 90-day plan) and the implementation of the Nevada incentive program

• Develop and distribute a survey for the motion picture industry to determine how the

NFO can improve services to them, their views of the incentive program in Nevada, and what would most drive motion picture production in the state

60-DAY PLAN, OUTREACH – IMPROVE THE NFO’S SOCIAL MEDIA PRESENCE


Social media is a vital tool for communication and building awareness. The Nevada Film Office needs to focus on improving its social media

presence, including: • Updating its Facebook page – the NFO’s

page currently contains no information and only one “like”. This page should be focused on developing excitement for the upcoming

implementation of the incentive program

• Posting to Twitter – the most recent tweet on the NFO page is from January 4, with no information or updates on the incentive program or current productions. Additionally,

the NFO’s Twitter page has only 8 tweets and 75 followers, compared to 4,350 and 13,129, respectively, for the Georgia Film, Music & Digital Entertainment Office

• Posting presentations, webinars, and other

information about filming in Nevada through iTunes, YouTube, and other online resources

90-DAY PLAN, ENGAGEMENT – ROADSHOW AND WEBINARS


• Introduction to the Nevada Film Office – history, accomplishments, staff, etc.

• The incentive program – What is it? How does it work?

• Filming in Nevada – What you need to know, major agencies and organizations

• Production and film infrastructure in Nevada – local workforce and production

resources, etc.

• Ten interesting facts about Nevada you may not know – 1. Nevada has more

mountain ranges than any other state, etc.

• Case Study of a sample major movie production – Incentive program example,

local agencies and other resources needed, sample locations

• Production pitches (when meeting with production companies) – winners from the

NFO Screenwriting Competition; suggest books set in Nevada to be made into

movies, such as Strangers by Dean Koontz; pitch our own original ideas, such reality

shows based on the World Series of Poker or nightclubs and night life in Las Vegas

(to be called Las Vegas After Dark)

The NFO should conduct a roadshow and webinars to directly communicate with the

industry, learn about their production plans for 2014, and educate interested parties

about the NFO, the incentive program, and filming in Nevada. The webinars will also

allow the NFO to gather email addresses and other information from participants that

can be used for future outreach. Suggested sections for such presentations include:

90-DAY PLAN, ENGAGEMENT –NEWSLETTER AND OTHER EFFORTS


In addition to roadshow and webinars, the final thirty days should be focused on the impending

implementation of the Nevada Motion Picture Jobs Creation Act and preparing for the rest of 2014, for example: • Draft and distribute a newsletter to the members

of the NFO database (which was enhanced in

the first 60 days of my plan). The newsletter will be developed quarterly and focus on recent productions in Nevada, relevant industry and local events, and highlights of local businesses, agencies, and locations

• Establish a presence at major film events nationally in 2014 (e.g. SXSW and Sundance) to directly engage with the industry

• Sponsor annual short film challenges, similar to

the 48 Hour Film Project, that will have unique Nevada-inspired themes and that must be entirely shot in Nevada. One possible example could be: “Elvis vs. Aliens”

CONCLUSIONS


The goal of the Nevada Film Office should be to establish Nevada as one of the top five states

(outside of California) for TV and movie production. There are immediate opportunities to increase motion picture production in Nevada but, given the limitations of the Nevada Motion Picture Jobs Creation Act, the state cannot compete solely on incentives, nor should the NFO try to retain or attract productions looking for the highest cost savings. Rather, the NFO should focus on following best practices; having the best systems and resources for producers; making film production in the state as efficient as possible; leveraging social media; creating a motion

picture infrastructure that attracts producers; and being proactive and creative with its business development, as outlined in my “Lights, Camera, Nevada!” plan. Additionally, a report published by the Milken Institute in 2012 titled FIGHTING PRODUCTION FLIGHT: Improving California’s Filmed Entertainment Tax Credit Program offers practical suggestions that can be followed for increasing motion picture production in Nevada, including:

• Target hour-long TV network drama production in the state, which has more consistent

employment and steady cash flow. More of these types of productions could be supported given Nevada’s incentive cap

• Deepen and broaden Nevada’s motion picture infrastructure (e.g., trained workers, local businesses) to attract future productions

• Work with state higher education institutions and governmental agencies to keep workers’ skills up to date to increase the state’s supply and quality of production crew

• Attract global productions from the fast-growing foreign entertainment industry by ensuring that a certain percentage of the tax credit budget is used to gain foreign investment

• Explore future separate funds for music and television productions, which would allow a more targeted use of money towards higher ROI projects

Source: Portions excerpted from a report by the Milken Institute.

lights camera nevada_a strategic plan for the nv film office

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