going global... and shrinking markets

There is an idea being floated around to limit or ban foreign movies from the Philippines. Of course, this is another idea from the film industry and their supporters among politicians. It is not a new idea. It has been forwarded before. And it is being resurrected again. The concept is inward looking, backward, isolationist and insular.

For an industry which is noted for its creativity, this idea is a very creative way of committing suicide. It aims to support an industry which has not made any attempts to increase sales by increasing its potential market, nor made any serious attempts at making quality output. The industry has for the longest time been conducted in a manner to make easy money; it's benchmark of success is a hundred percent return on investment within the first week of showing in Metro Manila. A movie is treated as a (quick and dirty) short-term project usually finished within a month of signing the principal actors. And any income after the first week's showing is treated as gravy. And full payment of the actors, extras and camera crew only due after showing. The reason being that most movies are financed individually (and probably due and payable in 60 days).

That there are conscientious people within the industry is without a doubt. That they have not been successful in changing film-making in the Philippines is also without a doubt. Most of the time they have fallen victim to the industry's problems.

There are very few companies which make movies and stay viable. A lot of the other film companies are little different from fly-by-night outfits. Making one movie to launch a (favored) would-be actor/actress (sometimes the company owner, the son or daughter), there is no continuity nor a sense of business for these firms.

All of these problems will not go away with a protected industry. Such protection will only spell its end. The principal competition is not foreign films, but other forms of entertainment media, including broadcast TV, cable, VHS and DVD rentals. In
this context, video piracy is a big concern, but not something which will go away in the next five to ten years.

There are solutions, but it needs educating the movie makers. The first is the mindset. A movie company must treat itself as a company. And a company is a continuing concern. Something which will be operating after the first movie has been finished. This is necessary in order to earn the most of the product. In terms of earnings, the company must view other sources of income from the product. The product itself must be treated for what it is, intellectual property. And as intellectual property, it is earning even after the first week's theatrical release. After the theater, there is TV, cable, VHS and DVD. Necessarily, in order to be viewed and bought in the latter forms, it has to be of good quality. For a quality movie, there has to be a sizable investment. Something which might not be payable in the short term.

Another solution, which other countries are already taking advantage of is the global market. Global in one sense that Filipinos are in almost every part of the world. But global in the real sense that the movie has to be world class quality, understandable and viewable by the rest of the world. This is the real market.

The first company which makes this decision will have a big price to pay. However, the stakes are large and the gamble would be worth it.