The celebrated TV series ‘Mad Men’ transported viewers back to 1960s New York, yet it was as a matter of fact largely filmed in a studio situated to the west of downtown Los Angeles. Among the sprawling workforce devoted to the series was one Sienna DeGovia, whose task was to recreate the unique food of that era, such as savory Jello dishes and aeroplane-appropriate one-inch carrot cubes. As a food stylist, she began her career helping out in a supporting role, eventually honing her craft over 25 years and finally ruling the roost. In a city like Los Angeles, it was normal to find such quirky roles, though these opportunities have dwindled. With global contractions hitting after a high in content production in 2022, the once-lively entertainment capital has faced significant challenges.
Describing the year 2024 as the precipice of a significant decline, DeGovia found herself desperately reaching out to her previous mentors for an assistant role, something she had not needed to do in two decades. The troubling shortage of jobs in Hollywood ignited conversations around government intervention—old talks reanimated. Sienna’s father, Jack DeGovia, who was once a production designer for popular films like ‘Die Hard’ and ‘Speed’, found himself in a similar predicament back in 1999.
Jack DeGovia then responded to the decline by setting up the Film and Television Action Committee, taking a stand against the trend of ‘runaway productions’, notably the impulse to film American content in cheaper locations, such as Canada. At the age of 84, he recalls the detrimental effect on the local industry, equating it to a direct attack on their livelihoods. The rise of Canada as a film destination was interpreted as an impersonation of America, triggering a defensive stance from American filmmakers. DeGovia led rallies both in Los Angeles and Sacramento, with the rallying cry ‘Film American!’ and the call for a state tax incentive to compete with Canadian subsidies.
Despite those efforts losing momentum, years later, California has seen the blossoming of a production tax credit and is even considering doubling it in order to keep pace with international incentives. However, this may not be sufficient. State estimates suggest that expanding the program could create around 4,000 to 5,000 jobs. Yet, in contrast, over the past two years, California has witnessed a decrease of 40,000 production jobs, as reported by the Bureau of Labor Statistics.
According to veteran film producer Chris Bender, not only state-level intervention, but also federal incentives will be required to maintain a competitive edge. Bender notes that approximately 70 countries globally already provide national subsidy programs. An idea like this, though perhaps lofty, has been floating around for generations – even Ronald Reagan advocated for a federal tax break to combat runaway production during his tenure as the governor of California in 1970.
Russell Hollander, the national executive director of the Directors Guild of America, states that the crisis of runaway productions isn’t a novel issue. However, he distinguishes the present scenario by highlighting the global downturn in film and TV production. Data from the DGA illustrates that all leading production centers worldwide, including California, New York, Georgia, Canada, and London, have endured a decline in recent years. This downturn, however, is significantly harsher in the U.S compared to international locations.
Hollander further explains that, under such circumstances, every job fleeing the U.S to chase foreign tax incentives amplifies the issue. Recapturing those jobs thus becomes a much higher priority. From a Canadian perspective, production subsidies are crucial for maintaining cultural autonomy. The primary concern is to ensure that Canadian cinema and television screens are not dominated by American content.
Sharing the Canadian viewpoint, Norm Bolen, the former president of the Canadian Media Producers Association, questions the necessity of U.S federal subsidy, deeming it an ‘absurd’ notion. Bolen holds the belief that Hollywood still enjoys global prevalence, questioning the supposed gap that needs to be bridged. He also expresses doubt over claims that Canada, by welcoming international filmmakers with subsidies, is causing a loss of U.S. jobs.
It was in 1986 that TV producer Stephen J. Cannell, in view of dwindling network fees, pivoted towards Canada in hopes of cost-saving for his Los Angeles-based NBC show, ‘Stingray’. Michael Dubelko, the then-president of Cannell’s company, contends that they were left with little alternative; the move was primarily about surviving. The company found a haven in Vancouver, which was then more or less a blank canvas in terms of production industry. Expediently, Cannell transformed an old distillery into a TV manufacturing hub, successfully producing numerous TV shows.
Dubelko recalls the affordable advantage that Vancouver offered; renting houses for shoots in Los Angeles commanded a hefty sum, ranging from $5,000 to $10,000 per day. This figure is in stark contrast to their experiences in Vancouver, where the local community was far more welcoming and affordable, free even. The monetary savings, coupled with a favorable exchange rate, summed up to a whopping $100,000 savings per episode, amounting to more than $2 million a season.
However, the move wasn’t without a share of reproach. Despite facing judgement in the early days, Dubelko and Cannell not only survived but thrived and were pioneers in establishing a flourishing industry in British Columbia. However, currently, Vancouver too is now experiencing the full force of the contraction, with a mere quarter of the local crew union members employed.
Positioned within this globally interwoven industry, Vancouver-based editor Gary Lam contends that the fortunes of Hollywood and Vancouver, and indeed the global film industry, follow a similar trajectory. When one is dealing with a slowdown, it is generally reflective of the global landscape. The cyclical nature of the business suggests that the slower periods are only temporary.
Doubling down on local governance’s role in supporting the industry, Lam perceives tax breaks and government backing as an absolute necessity. This stance aligns with the B.C. government’s recent measures of intensifying its production incentive. However, Dubelko remains unconvinced of U.S. incentives, citing the vast increase in production volume from 50 to 500 shows, a leap he associates with mobility and evolution outside of Los Angeles, and a change unlikely to be undone.