{"id":29044,"date":"2020-02-28T16:02:54","date_gmt":"2020-02-29T00:02:54","guid":{"rendered":"http:\/\/locationmanagers.org\/?p=29044"},"modified":"2024-06-19T11:28:20","modified_gmt":"2024-06-19T18:28:20","slug":"qa-with-toronto-based-john-rakich-lmgi","status":"publish","type":"post","link":"https:\/\/locationmanagers.org\/es\/qa-with-toronto-based-john-rakich-lmgi\/","title":{"rendered":"Q&A with Toronto-based John Rakich, LMGI"},"content":{"rendered":"

Rakich talks about the dominance of the streaming giants and their working practices, accessing incentives, studio space and crew practices<\/h3>\n

by Chris Evans\/reposted with permission from KFTV.com<\/p>\n

John Rakich has more than 20 years production experience with credits, including Jupiter’s Legacy, The Dark Tower, My Big Fat Greek Wedding 2, Carrie <\/em>and the Hannibal\u00a0<\/em>TV series.<\/p>\n

\n

Can you tell me a little bit about yourself and what films you\u2019re working on at the moment?<\/strong><\/p>\n

I have dabbled in everything from long format features to mid-range format television and series, but predominantly in the last couple of years I have been working on episodic television, mostly for streaming services. The last few years has been a lot of Netflix Originals and I am on a series now for Apple TV+.<\/p>\n

 <\/p>\n

And how do things differ working with streaming giants rather than standard studios?<\/strong><\/p>\n

It\u2019s not much different and is often the same people playing musical chairs between companies. There are so many new companies popping up. In the case of Netflix, I was doing some preliminary work for a series and the production executive I worked with changed on a weekly basis \u2013 there are so many new opportunities opening up. It can also be old people I have worked with before too. A lot of the companies are growing so quickly that there are some growing pains \u2013 the infrastructure isn\u2019t there or best practices haven\u2019t been established. It\u2019s not that much different though.<\/p>\n

\"\"Netflix are shooting all over the world and often taking over entire locations.<\/strong><\/p>\n

The studio I\u2019ve been working in here (Pinewood Toronto Studios) is somewhat of a Netflix hub. Almost 90% of the content created here is either original for Netflix or will be distributed by them outside of other markets. There are a few shows that aren\u2019t, like Star Trek Discovery, but it\u2019s on Netflix in Europe, so technically they can still call it a Netflix original in certain markets. There is very little that\u2019s not being done for a streaming service right now in this town. Maybe the odd feature film. If it\u2019s not for a streaming service, it\u2019s for a network that is creating one. CBS just opened up a facility here and it\u2019s just content for their own network and streaming service. There\u2019s just a lot of content being made here!<\/p>\n

 <\/p>\n

Does this cause problems? Do you have producers trying to shoot in your territory but find they can\u2019t do so\u00a0<\/strong>because it\u2019s been booked?<\/strong><\/p>\n

Labour and infrastructure are the biggest pinches. We have over three quarters of a million square meters of state space coming online in the next 10 months to accommodate for the need. The biggest impact is there\u2019s not enough skilled labour yet. We can hire new people, but we don\u2019t always need them at the beginning, we need them two years down the line when they have more experience under their belt. So that\u2019s a bit of a stressor right now. Television is now basically shooting small movies – no different budget-wise. Look at some of the money Apple is spending – Apparently one of their shows was $15m an episode. For eight hours of content that\u2019s $180m, which is more than most movies start off with and that\u2019s just for 90 minutes of footage.<\/p>\n

 <\/p>\n

Do you think this is sustainable? All this flashing the cash?<\/strong><\/p>\n

Disney is the sleeping giant. One thing it has, which the others don\u2019t have, is back catalogue. Disney can rest for a while. It\u2019s funny, when Netflix came on the scene, they came up with the whole binge-watching thing. Drop a whole show which everyone will talk about. The other streamers are going the other way with episodic rollouts. TV is now becoming an event again, \u201cI can\u2019t wait for next week\u2019s episode\u201d. Look at the Mandalorian – Who didn\u2019t talk about baby Yoda! You talked about it for several months, not just a weekend. Is it sustainable? Being 20 years in this business I don\u2019t think so but who knows anymore. There\u2019s just so much content. I have a feeling there will be mergers coming up in a while, so studios can stay competitive when they\u2019re dealing with giants with big bank rolls.<\/p>\n

 <\/p>\n

The streaming giants are actually struggling financially though.<\/strong><\/p>\n

I know, Netflix has no money, it\u2019s deficit spending. Then you have Apple, Amazon and Disney who are cash rich. I can\u00a0see someone gobbling up someone else in the next year.<\/p>\n

 <\/p>\n

Any idea who?<\/strong><\/p>\n

My guess would be Apple. If it\u2019s not a streaming service, it will be one of the networks that doesn\u2019t have a big company\u00a0behind it. If content is king, you need back catalogue as well and who doesn\u2019t have any right now? Apple. So, they just\u00a0buy it. HBO have a huge back catalogue. NBC is not going to spend a ton of money on content, but they have a huge\u00a0back catalogue of shows. 20 years of Law and Order, 22 years of Special Victims Unit. That\u2019s why people keep watching.<\/p>\n

Netflix is spending like mad because every year they lose 20% of their back catalogue in deals that are expiring. That\u2019s\u00a0why they\u2019re producing so much content; to fill the void. Apple has seven shows, iTunes is failing, but they have the\u00a0money to buy someone. It\u2019s why Disney bought Fox, for the back catalogue.<\/p>\n

 <\/p>\n

How do initial conversations with production teams tend to go now? Has it changed a lot in the last few years?<\/strong><\/p>\n

Fundamentally it hasn\u2019t changed too much, it\u2019s just the upfront conversation has to be about creative expectations.<\/p>\n

Line producers can\u2019t go back to pulling out budgets from 10 years ago and saying this is what it\u2019s going to cost \u2013 things have changed. Shows have got bigger; crews have got bigger and visual expectations are bigger. Even the equipment has got larger. Most of the streaming services are now filming on large format cameras which means more lights and more crew. Everything spins higher and bigger. Whereas with feature films everything is getting more low-budget and artsy. Sometimes TV shows are massive.<\/p>\n

 <\/p>\n

\"\"How much of the decision making is based on the crew and facilities available at the locations you\u2019re going to\u00a0<\/strong>and how much is based on incentives?<\/strong><\/p>\n

That hasn\u2019t changed much. No one is going to publicly say they don\u2019t have crew and tell us to go away. The nature of the beast is that the minute we know that in our mind that\u2019s no for the next year and you don\u2019t want to chase anyone away. Incentives-wise it\u2019s not even so much the local incentives anymore. Studios are looking at the visual effects incentives that are becoming the big ones. I\u2019ll take an example of a friend on a show right now \u2013 their VFX supervisor has been told 20% in British Columbia, 20% in Quebec, 20% in Ontario, 20% in NY and then the rest you can do wherever you want. That\u2019s your VFX spend. Why? All four of those have VFX credits which are stackable and which you can combine. You watch any big movies now and that\u2019s what you\u2019ll see the thank yous for. Co-productions are next. That\u2019s the way to deal with making more, when you can combine the credits together. One doesn\u2019t take over the other, you can combine them together and make even more bang for your buck. There\u2019s a show currently filming in Ireland for Apple where I believe the art department is here (in Canada). The designer has travelled to Ireland, but the flesh and blood art department is in Canada. This means you can double up tax credits.<\/p>\n

 <\/p>\n

That seems to be working OK at the moment.<\/strong><\/p>\n

Sure. It\u2019s a digital day. I can send you finals to wherever you are, you don\u2019t need to be looking over my shoulder but if\u00a0you need to there are ways to do that too. The teleworker can work in this industry too. A VFX supervisor can manage\u00a0vendors all around the world now, he doesn\u2019t have to fly out there. Technology is changing things \u2013 things are still\u00a0staying the same but changing at the same time. Like anything in this business it\u2019s always a little odd.<\/p>\n

 <\/p>\n

Are territories becoming aware of that? They\u2019re all about competing with incentives.<\/strong><\/p>\n

Decisions are made on creatives, but they are also made on incentives. Always have been, always will be.<\/p>\n

 <\/p>\n

Are they offering more VFX and post-production incentives as well as the standard ones?<\/strong><\/p>\n

That is starting to happen. Here in Ontario we have done that. We are doing a lot more post-production here. Shoot your movie where you want, just do your post here and get a 30% incentive. It is a labour credit in Ontario. Again, because post can be done anywhere.<\/p>\n

 <\/p>\n

You mentioned before about the expansion of studio facilities available. What\u2019s happening on that front in Canada at the moment?<\/strong><\/p>\n

I know in Vancouver and Ontario we have been in deficit for a couple of years. You asked earlier if the work is sustainable or not. A good way to tell is that we have so much stage construction being financed and built, and banks don\u2019t give out loans unless they know it\u2019s a sure bet. Bankers have actuaries running numbers on long-term growth and looking for a return on their investment. So, we are building several studios in Ontario, and Vancouver is also expanding. I don\u2019t know where else in Canada is, but we are the two main centres. I know other jurisdictions talk of it. Pre-Brexit I know there was talk of it in England. We\u2019re at the point where there is always a lot of talk, but we don\u2019t have<\/p>\n

shovels in the ground at the moment. The hilarious part is that we have 300,000 sq. ft of stage ready this spring, but you won\u2019t hear anything about it because Netflix has already put a lease on it for 5 years! And look at what\u2019s happened with you guys. Any room at\u00a0Pinewood?<\/p>\n

Pinewood has shuttered their Atlanta operations, they\u2019re closing their Malaysia operations, the rest are full \u2013 I\u2019d hate\u00a0to be working in their leasing department right now. I\u2019d be worried about my job. The Toronto facility is in theory full\u00a0but there\u2019s some openings right now as Netflix doesn\u2019t have anything ready to go right now, so they\u2019re offering up\u00a0some smaller stages until May. CBS has the rest for Star Trek, and they refuse to move. Interesting times.<\/p>\n

 <\/p>\n

What about alternative studio options?<\/strong><\/p>\n

That\u2019s what we\u2019re also doing. A couple of our equipment suppliers are trying to do conversions. We\u2019re also in a property boom, so finding space close to the city core just isn\u2019t realistic. Now it\u2019s a case of moving out further and further and finding whatever kind of warehouse space you can and doing conversions. One of our big suppliers is William F Whites, who just opened up a studio here which is a conversion. Purpose built is a lot harder as you\u2019ve got to find land. But you can find an old warehouse and a parking lot and how hard is it to put some walls up and some soundproofing? I mean the building I\u2019m currently in used to be a glass factory which was turned into a studio.<\/p>\n

There\u2019s always going to be real estate. There\u2019s always going to be an empty Sears or Big Bucks store. They make great studios spaces with some money put in them.<\/p>\n

 <\/p>\n

Are there any key up and coming territories offering alternative location options?<\/strong><\/p>\n

I think things are spreading out evenly everywhere. I know there\u2019s the question over where the work from Georgia will go if that law doesn\u2019t get struck down. I think it\u2019s just going to find a place to filter on its own. Serbia is becoming quite popular with European filmmakers because it\u2019s like Croatia without the tourists. North America is always the same kinds of places. The big question is now where the work that was going to shoot in Australia is going to go ((interview at time of fires raging).<\/p>\n

 <\/p>\n

I was going to ask you about that. What impact are the fires and climate change going to have on filming?<\/strong><\/p>\n

Huge. You\u2019re making decisions based on the situation now but for 6 months\u2019 time. We had the same thing in 2005 with\u00a0SARS. A couple of people were seen on the news in masks coming out of hospitals and the next thing we didn\u2019t have work for a year. Studios are quick to respond but take time to react. I am hoping everyone is fine in Australia, but I can see a lot of the big studio stuff either staying away or insisting on going there to help the economy. It can go both ways these days because there\u2019s so much clout. It\u2019s strange, sometimes the decisions made in film are most bizarre. It could be incentives, actor\u2019s choice, or what looks good for the company.<\/p>\n

 <\/p>\n

What\u2019s the balance usually?<\/strong><\/p>\n

Usually cost. At the end of the day it\u2019s all about counting. It\u2019s show business and it\u2019s some business.<\/p>\n

 <\/p>\n

How much impact is the political situation having on decision-making processes?<\/strong><\/p>\n

It\u2019s instability. Studios don\u2019t like labour unrest or instability. So, politics has an influence, case in point Georgia.\u00a0Romania was a hot place to film previously. You don\u2019t see a lot of films coming out of Saudi Arabia. I know some people who were preliminarily scouting for shows with some questionable content. It\u2019s not just about the look, it\u2019s about the geo-politics too. Georgia isn\u2019t the only state in the US that has passed a law like that, it\u2019s just most of the major studios had invested a lot of money there and it\u2019s scared them. If you don\u2019t think that Disney coming to the UK wasn\u2019t a reaction to being scared out of Georgia, well, it all happened very quickly there. They got scared out of Georgia and next thing they\u2019re making a long-term investment in the UK. What will Brexit bring? Well they\u2019re Disney and they don\u2019t care.<\/p>\n

 <\/p>\n

You think they don\u2019t care?<\/strong><\/p>\n

Disney is a company that changes law. There\u2019s a reason why the digital copyright act is called the Mickey Mouse law in the states. Between Apple, Amazon and Disney you\u2019re seeing three of the largest companies in the world. Amazon is the one that makes no sense to me. It generates no revenue. You watch Amazon programming? How did you pay for it? Do you order Amazon TV or Prime for free shipping? Most people order Prime so you can get your socks delivered the next day and you get access to a whole TV division which doesn\u2019t cost a dime. As a business model it derives no traffic and no revenue \u2013 it\u2019s data mining for merchandise and that\u2019s it. It\u2019s the same as Apple. I know you\u2019ll watch this, and you\u2019ll want these products. I can sell the results of what you watch to somebody. You used to see it on a commercial and go to get it from the store \u2013 it\u2019s the reverse now. I see what you\u2019re watching, and I can tailor ads to you. That\u2019s the quiet contract we\u2019ve made with these companies \u2013 Facebook, all of them. How many times do you go online and see an ad for something you talked about with friends?<\/p>\n

 <\/p>\n

You think this is a bubble that will burst though, all this production?<\/strong><\/p>\n

Here\u2019s the question I ask \u2013 who\u2019s watching it all? I don\u2019t have time to watch most of it and I make a lot of it! There\u2019s\u00a0always this idea that there\u2019s going to be too much inner contraction, but it hasn\u2019t happened yet. Logic just says it might\u00a0have to happen. It happened with the networks \u2013 there started out too many and then it went right down.<\/p>\n

 <\/p>\n

Do the streaming giants take over locations for long periods. Does that happen a lot?<\/strong><\/p>\n

Of course. Netflix did a show called Anne with an E. The farm they used they rented for three years, even though for\u00a0six months of the year they were never there!<\/p>\n

 <\/p>\n

Do productions battle for the best crew and equipment too?<\/strong><\/p>\n

You try to book people as much as you can too. I\u2019ll use an example of Star Trek Discovery which shoots here in Toronto and they\u2019ve got three cranes. They might not need them, but they want them in case they do so they\u2019re not 4 in line for a piece of equipment or have to wait for it to get shipped over. If you\u2019re smart and you have a good crew, you keep them on. It\u2019s cheaper to hold on to them for two weeks rather than risk someone else taking them. Interesting times. It\u2019s a business and you want the best commodities and the best everything, so you do what you need to. It equates with our wages too. We\u2019re all making more now because there\u2019s a glut. You want good people; it costs a little extra.<\/p>\n

 <\/p>\n

Are crew being looked after better? Does it depend on the production?<\/strong><\/p>\n

Yes \u2013 I mean two years ago when I found out that BECTU (Broadcasting, Entertainment, Communications and Theatre Union) members were finally getting contractual overtime it blew my mind. It\u2019s something we\u2019ve never even had to think about here \u2013 if you work it, you get paid for it, as long as it\u2019s approved. BECTU has started the whole eyes wide awake campaign. The problem is the European way of making TV and film was always more appealing \u2013 10-hour days. Over here we work 14, 15, 16-hour days, which is better for the bottom line but there\u2019s a human cost. Most US studios and streamers when they go to any jurisdiction, they bring the practices from America with them but can sometimes forget the labour rules \u2013 they leave that binder at home! They try to see what they can play with where they are.<\/p>\n

 <\/p>\n

What are some of the key issues you\u2019ll be facing in 2020 as a location manager?<\/strong><\/p>\n

Labour. The increase of production means an increase in crew is needed and so it is labour in training. And to be honest, climate. I will get a designer asking me in December, when it\u2019s 2 degrees with snow on the ground, if there\u2019ll be green trees in March. My answer is very simple \u2013 I don\u2019t know! I can\u2019t tell you anymore. It\u2019s not predictable. Seasons used to be much more predictable. If you want to do a winter movie with snow now \u2013 good luck! Not all doom and gloom though. It\u2019s still a great industry to be in that gives most of us a life we could never have imagined. It\u2019s probably the last great unskilled manufacturing job that exists, where you learn from the bottom and master your craft. I wouldn\u2019t do anything else. If I didn\u2019t love it, I wouldn\u2019t be doing it!<\/p>\n

 <\/p>\n

John Rakich is a member and secretary of the Location Managers Guild International (<\/em>LMGI).<\/em><\/p>\n<\/span>","protected":false},"excerpt":{"rendered":"

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