Filmmaker boost from telecoms liberalisation

By NEIL HARTNELL
Tribune Business Editor

Telecommunications market liberalisation could further aid the growth of the Bahamian film production industry as a niche market, a leading investment banker said yesterday, as it would provide more avenues for distribution of local work.
Owen Bethel, president and chief executive of the Montaque Group, told Tribune Business that with movies and 'shorts' now being viewed on iphones, and movies being downloaded on to cell phones in many countries, the long-awaited development of new products and technologies following the Bahamas Telecommunications Company's (BTC) privatisation and market liberalisation could further help to unleash Bahamian creativity in film production.
And he added that the Government's policy for the Broadcasting Corporation of the Bahamas (BCB), moving it towards a public broadcasting service and possible privatisation, could also provide new opportunities for Bahamian filmmakers, given that it would require locally-produced content and programming.
"With the development of the telecommunications avenues for release, you have movies and 'shorts' on iphones," Mr Bethel told this newspaper. "It really tells you that the telecommunications industry is moving by leaps and bounds, where you can even now download movies on a cell phone.
"The number of avenues local producers can take to ensure exposure and sales of their production are increasing, and it means the growth of the industry is not just [confined] for theatrical release."
Bahamian filmmakers and producers could specifically tailor their works for cellular phone customers, tapping into the fastest-growing area of telecommunications worldwide, Mr Bethel suggested, thus exposing themselves to a new audience and expanding distribution channels.
Importance
Given the telecommunications industry's potential future importance to Bahamian filmmakers and producers, and its role in stimulating growth in their sector, Mr Bethel urged the Government to be very deliberate in its decision-making on the BTC privatisation and subsequent liberalisation.
"It is going to require that the process is done properly," he added, "and the potential for these various niche markets and what it means for Bahamians should not be overlooked.
"Government, in its deliberations, must look to see where benefits can be made and reserved for the development of Bahamian industry in the diversification of the economy. That means a very complete and thorough review by all parties in whatever privatisation process there is."
Another potential opening for Bahamian filmmakers and producers lay at the BCB/ZNS, Mr Bethel said. "With the direction the Government is moving in in regards to the TV industry, public service broadcasting and possibly further privatisation of it, there is a need for further content and locally-produced movies and features," Mr Bethel told Tribune Business.
"The ability for local producers to see an avenue for release through these means lends itself to a niche market, where we can showcase local talent in an industry other than tourism and banking.
"It won't happen overnight; it has to evolve over time, but the talent is there. It just needs more avenues to be exposed, and released from the exposure."
Film production is an industry that appears to have, in particular, captured the imagination of young Bahamian entrepreneurs, encouraging them to make full use of their creative talents.
Independent
Mr Bethel said their efforts were being further aided by the increasing tendency of US-based film studios to provide an avenue for independent producers to develop their works, not just for theatrical release but also DVDs and TV productions.
"Hidden throughout has been this talent and desire to produce, but it has clearly been limited by what is seen as a limited market and the exposure they would get," Mr Bethel told Tribune Business of Bahamian filmmakers.
"Kudos to the Bahamas International Film Festival and Celi Moss for drawing attention to, and providing an avenue for, the talent here and allowing those filmmakers to see it's really a stepping stone to a larger industry.
"From that perspective, I'm pleased Bahamians are coming out of the woodwork and are confident enough to present their works for review and criticism. I hope constructive criticism makes them better and increases their resolve."
But, in a reference to the still-closed Bahamas Film Studios on Grand Bahama, Mr Bethel said one element lacking in the development of Bahamian filmmakers was access to a purpose-built production facility that would act as a one-stop-shop in taking care of all their needs.
"It would be great to imagine there was a Film Studios established to capture this talent and put it to greater use on an active basis," he told Tribune Business. "Had we seen the Bahamas Film Studios come to fruition, that is an avenue that has the greatest potential to develop this talent. But it is one that is lacking."
Mr Bethel pointed out that Pirates of the Caribbean IV was set to be released next year, having been filmed elsewhere after its II and III prequels were shot at the Bahamas Film Studios, largely due to the facility's demise and closed status.

Call for 15 per cent film incentive to be revived

By NEIL HARTNELL

Tribune Business Editor

The Government has been urged to reinstate the 15 per cent rebate incentive to ensure the Bahamas retains its competitiveness as a film/TV production location, a Bahamian banker warning that its absence, coupled with the “uncertainty” surrounding the Bahamas Film Studios, “does not bode well for the industry”.

Owen Bethel, president and chief executive of the Nassau-based Montaque Group, whose Bahamas FilmInvest International group made two ill-fated attempts to acquire the Bahamas Film Studios from former principal Ross Fuller, called on the Government to show it was “serious about the development of the industry” by appointing a manager to restart operations and maintenance at the Grand Bahama-based facility.

The Bahamas Film Studios, which is where much of Pirates of the Caribbean II and III were filmed, may face winding-up proceedings from Bahamian engineering/environmental consultancy, Islands by Design, which is seeking to recover a $90,000 debt plus interest owed to it.

If such a development comes to pass, the Bahamas could lose a key component of its attractiveness to TV and film producers as a shooting location, depriving the economy of lucrative multi-million dollar revenue streams. The Pirates of the Caribbean films injected an estimated $40 million in spending into the Freeport economy when it was at its lowest ebb.

“It is unfortunate that uncertainty continues to prevail as to the status and operation of the Studios,” Mr Bethel told Tribune Business, “because it does have an effect on the perception of the Bahamas, and the seriousness with which we approach the film industry and film production here.

“While the Studios are literally just one component in the development of the industry, and recognising that the natural beauty and waters of different islands continue to make the Bahamas an attractive location, the Film Studios provided a protected area where there was the potential for value added production and editing of films - the extra work that could be done.

“With the uncertainty that continues to prevail, that does not bode well for the industry,” Mr Bethel said. “That is coupled with the fact that the Government has found it necessary to suspend the rebate incentive for film production due to the current economic and financial circumstances.”

That rebate had allowed foreign TV and film production crews to recover a sum equivalent to 15 per cent of their total spending in the Bahamas, but had been suspended some two years ago.

“The incentive was certainly attractive to the likes of Pirates of the Caribbean, Casino Royale, so it did lend itself to making the Bahamas much more attractive to them, the producers at the time,” Mr Bethel said.

Given the competition from rival destinations all eager to increase their share of the film/TV production market pie, Mr Bethel said the Bahamas’ 15 per cent rebate incentive was “significant”, and had the ability to influence the production location selection.

The Bahamas, he added, had largely promoted itself as a destination for the filming of TV shows and films featuring numerous water scenes, a niche market in which there were relatively few productions.

“Therefore, we get into the question of where are the other locations competing with us, and whether they are still getting incentives,” Mr Bethel told Tribune Business.

“There’s obviously Hawaii. That has an incentive programme. There’s Florida itself and the Keys, and they have an incentive programme there, and Mexico.”

The added value provided by the Bahamas Film Studios, said Mr Bethel, was that apart from its core water tank, the project also had land-based studios where other scenes could be shot, films edited and costumes and sets designed/produced. Now, though, the Bahamas Film Studios is no longer operational, and the value of the asset is diminishing as it falls into limbo.

“The Government, if it is serious about development of the industry, and recognising the value Pirates of the Caribbean brought to the Freeport area, should consider putting out the management of the Studios as an interim measure, with the intent of being able to sell it, but at least ensuring the upkeep and maintenance is there and put in place,” Mr Bethel said.

“So we can, in fact assist in other smaller productions finding it attractive to be there. Even if it is not at the level of 15 per cent, some incentive, which is attractive to producers, would indicate the seriousness of the Bahamas in attempting to attract other productions.”