A couple of articles that affect all actors! Looks like it has been a good “Pilot Season.” And Vid Skid may point to “More” Premium Product!
May 04, 2005
Pilots inject $300 mil-plus into L.A. area
By Jesse Hiestand
This year’s pilot season generated an estimated $364 million in production spending, 90% of which took place in the Los Angeles area, according to a study to be released today by the regional film office.
The Entertainment Industry Development Corp. surveyed the major studios to gauge the pilot season’s impact, especially in light of incentive programs that are drawing work to New York and other locales.
As a first-ever study, no immediate trends were evident, but EIDC president Steve MacDonald said the robust pilot season helped offset declines in other areas of TV production.
“This has been a very healthy pilot season, and more importantly we were able to figure out just what the economic impact of pilot season is,” MacDonald said. “It’s a huge impact on the area in just a few short months you’re having more than $300 million injected into the economy.”
According to the EIDC, at least 131 pilots were produced during the 2005 production season, which recently has expanded to nearly five months to accommodate the increased demand for original cable programming, an emphasis on midseason replacements instead of reruns and the trend toward year-round original programming.
It was estimated that the average one-hour drama pilot costs $4 million, with a half-hour show costing about half that.
In terms of format, half-hour episodic series accounted for 57% of the work, with hour dramas representing 41%. That translated into more than 90 hours of programming, or about $364 million in total pilot spending.
An estimated 90% of that work took place in Los Angeles, with half of the remainder occurring in New York.
“This is the first television pilot season in which New York has hosted a significant amount of production,” MacDonald said. “It’s clear that aggressive financial incentives are helping drive TV production to New York, as they have driven features to Illinois, Louisiana and New Mexico.”
Overall production in the Los Angeles area, including TV, feature films, commercials and music videos, increased 2% in first-quarter 2005, according to the EIDC. While feature work was up 25% and both commercials and music videos essentially were flat, TV production fell 6% compared to an especially busy period the year before. Still, that was said to be a 100% increase over the 10-year average thanks in part to pilots representing 33% of overall location TV production.
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Posted: Tue., May 3, 2005, 4:38pm PT
In regards to pilots
“It was estimated that the average one-hour drama pilot costs $4 million, with a half-hour show costing about half that.”
So, let me get this straight! Thanks to President Gilbert and her Political Pals, series regulars on new series will be giving up three residuals on three shows to help the show succeed! Hmmm
Let’s do the math again! Say a new one-hour drama had a cast of 10 regulars! The residual cap for each member is $3,225. That would add up to $32,500 dollars on a show that cost 4 MILLION DOLLARS! Oh, yeah, that 32 grand savings is gonna make or break a show! Right!
With a interactive strike-authorization in hand, this story at first glance might seem to be bad news for interactive actors, but not necessarily.
Record revs but lower profits at vidgamer EA
Net income down from $577 mil to $504 mil in 2004
By DAVID S. COHEN
Vidgame giant Electronic Arts reported record revenues for fiscal 2004, but a decline in net income for the year and net revenues for the fourth quarter. Company also said it anticipates a net loss this quarter.
Stock closed up 45 to $52.90, but dropped more than 11% in after-hours trading following news.
Redwood City, Calif.-based EA saw net revenues for the year jump 6% to $3.1 billion, driven by some 31 titles that sold more than a million copies apiece.
Net income, though, was down from $577 million in fiscal 2003 to $504 million in 2004.
The year’s final quarter, which ended March 31, saw net revenues decline from $598 million to $553 million year-on-year. Company blamed the drop on lower margins and higher operating costs.
First-quarter revenues are expected to be between $300 million and $340 million, down sharply from last year’s $432 million. As a result, company predicts a net loss per share between 22 and 28, compared with profit of 8 a share last year.
In reporting the results, company toppers noted an industrywide trend toward falling software prices but insisted top titles, such as “Madden NFL Football” and the Sims franchise are likely to hold the line on price.
Chairman and CEO Larry Probst told analysts,
“Premium products will continue to command premium prices.”
Probst and chief financial and administrative officer Warren Jenson said the company is investing for long-term growth and expects to see a shift toward mobile gaming and online play.
Online gaming, he said, will mean more deferred income in future reports, but that should not dent the bottom line.
Looking ahead, Jenson said net revenue for 2006 is expected to be between $3.4 billion and $3.5 billion, up 9%-12% year-on-year.
With the absorption of Criterion Software, Jenson said the company will consider further acquisitions over the next year.
“We’re not in any hurry,” Jenson added, “but we believe there will be opportunities, and we expect to be active participants.
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The Ol’ Dog found this quote in the article of interest. Chairman and CEO Larry Probst told analysts,
“Premium products will continue to command premium prices.”
Ah, so, they’re aware that premium product is of premium importance. And, of course, premium product requires premium performanceand we all know that requires premium SAG/AFTRA performers!
Go get ‘em guys!
A.L. Miller SW Editor & Chief