Hitting the right spot

Hitting the right spot

Andy Fry
By Andy Fry
November 6, 2015

WE NEED TO TALK ABOUT

Looking for Victorian London? Try Dublin. Or perhaps you’re after the kind of quintessentially Italian setting one can only find in Prague? From tax credits to geography and architecture, DQ examines the factors far beyond plotlines that play a part in selecting drama production locations.

Jetting around the world in search of locations was once the domain of feature-film producers. But it is now increasingly common for high-end TV productions to scour the globe for the right backdrops to their stories.

A key reason for this is the rise of tax incentives. With a growing number of countries and regions introducing financial sweeteners to attract film and TV drama, producers now have an array of opportunities to positively impact their budgets, either by controlling costs or putting more value on screen.

Benedict Cumberbatch in Parade's End, which was filmed in Belgium
Benedict Cumberbatch in Parade’s End, which was filmed in Belgium

Most scripted TV executives agree, however, that the pursuit of tax incentives shouldn’t be allowed to dictate the location decision-making process.

“I’ve been shooting around the world for 35 years so I know the pros and cons of tax incentives,” says Starz MD Carmi Zlotnik, “and the bottom line is it’s just one factor among many. The appeal of tax breaks has to be balanced with the creative needs of the project and the logistical set-up you find when you get to the other end.”

He cites hit Starz series Power as “a show that just had to be made in New York. We could probably have replicated New York in Toronto but I don’t think we would have got the authenticity that makes the show stand out.”

However, the network opted for a more exotic location for pirate drama Black Sails (pictured top), which shoots in Cape Town and will launch its third season in the US on January 23, 2016.

Zlotnik explains: “South Africa is a world-class location. You don’t just get tax incentives, you get a fantastic crew base and superb exterior locations. There is a construction team that knows how to build a ship and a deep pool of actors. In Black Sails, the second and third tiers of actors are great, which is something you wouldn’t get in every location. Details like that can have a real impact on whether the audience engages with a show.”

Patrick Irwin, executive producer and co-chairman at Far Moor, a coproduction specialist, takes a similar line. “I don’t think any producer would choose to shoot in a country simply to achieve tax breaks without considering the other factors,” he says. “They may well decide that the benefit from tax credits is outweighed, either by the creative sacrifices required or the additional logistical challenges, such as travel. Add to that the complications of meeting treaty and tax credit requirements and twin production bases in different countries, which means additional legal and potential collection agreements.”

The notion that tax incentives can be undermined by other financial factors is a common talking point. Aside from travel and accommodation costs, for example, the tax incentive premium can quickly dissolve if you need to bring in specialist equipment or if there are unanticipated production delays because of inexperienced or inefficient crews. This scenario is particularly common when countries have only recently introduced their tax incentives and are, as yet, unproven as filming locations.

“We took one of the first big drama productions, Parade’s End, into Belgium to take advantage of tax incentives,” recalls Ben Donald, another coproduction specialist who splits his time between working for BBC Worldwide and his own indie start-up Cosmopolitan Pictures. “While the shoot went very well, there was a lot of logistical running around. We found ourselves using several locations and flying in people we hadn’t expected to call on.”

Sky’s Fortitude was shot in Iceland
Sky’s Fortitude was shot in Iceland

There’s also “a human side to production that needs to be taken into account,” says Donald. “There is often an impulse among actors and other key talent to stay at home, which needs to be considered. It’s possible you will get a better end result if they are at home rather than in some temporary set-up.”

Having said that, it’s crystal clear tax incentives do influence location decision-making. California’s loss of film and TV work to Louisiana, Georgia, New York and Canada is a classic example of tax incentives redirecting work to other production centres. The UK has similarly lost out to Belgium, Ireland, Eastern Europe and South Africa over the years.

A case in point is Ripper Street, a BBC drama that recreates Victorian London in Dublin. It’s no surprise then that both California and the UK, despite the inherent strength of their infrastructures, have had to improve their own tax incentive schemes in order to reverse the runaway production trend of recent years.

Oliver Bachert, Beta Film’s senior VP for international sales and acquisition, says that in most cases there doesn’t need to be a conflict between creative and commercial considerations. “The economics of drama production mean you have to be realistic. But often we are in a position where the creative and financial requirements fall in line. Sometimes we can get the look we want in Eastern Europe at a lower price than we would get in Western Europe, so it makes sense to do that – especially when you’re dealing with places like Prague, in the Czech Republic, where the production infrastructure is excellent.”

Beta is currently involved in a US$17m miniseries called Maximilian that will shoot across Germany, Austria, Hungary and the Czech Republic, thus achieving the right mix of authenticity and efficiency. Indeed, Bachert says there are occasions with period pieces “when you can find better examples of the locations or buildings you want in foreign territories than where the story is set. With Borgias, an Italy-based story, we shot some of the production in Prague because it had the renaissance backdrop required.”

Donald endorses this point: “We’re working on a new production of Maigret with Rowan Atkinson. Although it is set in 1950s France, some of it is being shot in Budapest, Hungary. Clearly there are financial benefits to this, but it’s not always easy to shoot in cities like Paris because of the permit rules and because of the way the character of the city has changed.”

Hatfields & McCoys recreated Appalachia in Romania
Hatfields & McCoys recreated Appalachia in Romania

Most producers start with the requirements of the story and go from there. As FremantleMedia Australia director of drama Jo Porter explains: “There’s always a point at the beginning of the process where you’ll pass on some projects because you just know the location choices inherent in the story would be too expensive. But after you get into development there are usually a few options for where you might produce a show. It’s at this point you start weighing up the best alternatives.”

Not surprisingly, being in Australia makes a difference. “There are no hard and fast rules, but it’s inevitable that where you are based plays into your decision-making,” says Porter. “With many of our projects, the question for us is about which part of Australia offers the best creative and financial solution – not whether we should take the production to another country.”

However, Porter adds that there are times when the story dictates that you go abroad: “Advances in technology like green-screen and VFX have really helped. But we recently made a TV movie biopic for Network Ten called Mary: The Making of a Princess, about a local woman who married a Danish prince. For the sake of authenticity we had to go to Copenhagen. There’s only a limited amount you can achieve with Australia’s architecture and climate – though we have made it snow in Sydney.”

Exchange rates are another factor that Porter says can make a difference: “Australia has everything you could possibly need to handle an incoming production, but the strength of the Australian dollar has had a negative impact. Now, though, the currency has dropped enough that I think you might start to see it coming back onto producers’ radars.”

Of course, not all locations are in direct competition with each other. “There’s some overlap,” says Donald, “but if you’re looking for action-adventure backdrops then you probably think first about South Africa (which has hosted series like Left Bank’s Strike Back). And if it’s a biblical epic then you’re swaying towards places like Malta or Morocco. As for Eastern Europe, it gives you another set of urban and rural options.”

Morocco is an interesting case, because it continues to attract big-budget TV series such as HBO’s Game of Thrones, BBC2’s The Honourable Woman, Spike TV’s Tut, Fox’s Homeland and NBC’s AD: The Bible Continues – despite having no tax incentive. With superb standing sets at Ouarzazate in the south, it has doubled for locations like Iran, Egypt, Somalia and Israel, among others.

The Honourable Woman filmed scenes in Morocco
The Honourable Woman filmed scenes in Morocco…

Fans of Morocco cite a variety of factors for the country’s popularity, including the quality of the light, experienced crews, low production costs, political stability and a liberal attitude to Western filmmakers. But it remains to be seen whether the country can persist with its current stance on tax incentives.

With the UAE, Jordan, South Africa, Malta and Turkey all able to replicate some of Morocco’s landscapes, it may soon find itself having to join the increasing number of countries adopting incentives. South Africa, for example, is hosting ITV’s new four-part drama Tutankhamun, in which it will double for Egypt. Although usually thought of as a lush, fertile land, South Africa also doubled for Pakistan in Homeland and Afghanistan in Our Girl.

Echoing Porter’s point about location proximity, most US TV drama producers tend to make decisions about which US state to base their productions in (or whether to go north to Canada).

Gene Stein,  the former CEO of Sonar Entertainment, says: “We looked at a number of southern US states before we located Sonar’s new series South of Hell in Charleston, South Carolina. We needed a beautiful city to be the backdrop for a southern gothic story and it fit the bill perfectly. The fact there was a good financial package also played into the final decision.”

However, Stein says the US market’s current drive towards high-end drama is encouraging producers to make ambitious decisions about locations. “With the increasing number of distinctive dramas, there’s a hunger for great locations. Sonar recently shot Shannara for MTV in New Zealand. That’s a massive show that demanded a striking visual approach. So when you combined New Zealand’s beautiful locations with its tax incentives and the quality of its craftsmanship, it all made sense. And we’ve come out with a fantastic show.”

This endorsement of New Zealand, which is a prime location for European and US shoots in winter because it is in the southern hemisphere, is echoed by Starz’ Zlotnik, who says film franchises like Lord of the Rings and Avatar helped establish a high degree of technical expertise and led to the premium cable network’s decision to film Ash vs Evil Dead there.

In addition, Zlotnik says there is a robust relationship between the US and New Zealand thanks to the work done by Ash vs Evil Dead producer Rob Tapert, who first started bringing productions like Hercules and Xena: Warrior Princess to NZ in the 1980 and 1990s. “Having someone like Rob involved provides you with the security you need when shooting on location,” he explains. As a general rule, having a reliable production services company in the market can be a big influence when weighing up the relative merits of locations.

...as did Spike TV's Tut
…as did Spike TV’s Tut

Another key point to understand about location decision-making is that the market is evolving all the time, adds Playground Entertainment founder and CEO Colin Callender. “No producer ever says they have enough money, so they’re always looking for way to secure a financial advantage that can improve the end result,” he says. “But things can change suddenly. With Wolf Hall we were looking at Belgium when the UK introduced its new tax credits. After that we knew we could afford to make the show in the UK and the decision became self-evident.”

There’s no question that the UK is a popular choice right now. Far Moor’s Irwin says: “Thanks to the additional tax credits, our first choice would always be to try to shoot domestically with potential enhancement from regional incentives such as Northern Ireland Screen (NIS) or Screen Yorkshire, unless there is an obvious creative rationale to shoot overseas. We’ve filmed numerous productions in Belfast, Northern Ireland, most recently with the ITV drama The Frankenstein Chronicles, which is produced by Rainmark Films. We have also filmed two seasons of BBC2 series The Fall in Northern Ireland and are about to start prep on the third. We’ve found the crew in Northern Ireland to be highly skilled and the NIS funding adds to the appeal.”

One exception to Far Moor’s UK-centric approach was BBC1 period fantasy Jonathan Strange & Mr Norrell, which was partly filmed in Canada and Croatia. “The reason behind this was a combination of tax credit benefits of Canadian coproduction and the locations on offer. We added Croatia for its unspoilt locations, which were ideal for doubling as Waterloo and Venice; this couldn’t be achieved in the coproducing countries.”

While the Czech Republic and Hungary tend to be the preferred locations in Eastern Europe, they are facing increased competition within the region. The BBC’s new epic interpretation of the novel War and Peace has been shooting in Lithuania, where it benefited from a 20% filming incentive, while History’s 2012 miniseries Hatfields & McCoys recreated Appalachia in Romania. Rising star Croatia, which introduced a 20% tax credit in 2011, also secured work from Game of Thrones and Beta Film-distributed Winnetou, a Western adventure based on the books by German author Karl May.

Looking at the global map, you definitely get a sense of location clustering – rather like the way you see estate agents next to each other on the high street. The southern US states and Eastern Europe are the best examples. But it’s noteworthy that the Republic of Ireland also forms part of a popular block with the British mainland and Northern Ireland.

Aside from Ripper Street, titles to have been based there include Penny Dreadful, Vikings and The Tudors. In part, this is down to tax incentives and crew quality, but it is also significant that the ROI has two impressive studio complexes, Ardmore and Ashford. Studios are also a key factor in the popularity of territories such as the US, Canada, UK, Germany, South Africa and Australia.

For all the reasons outlined above, producers tend to be slightly conservative when choosing locations, preferring to go with tried and tested areas ahead of unused ones. But there are a few places starting to attract interest as a result of new tax incentives. FM’s Porter says: “We are starting to look at producing drama that has more of an international profile to it, and as we do we are thinking about Malaysia and Singapore, both of which are increasingly important production centres.”

Starz zombie drama Ash vs Evil Dead was shot in New Zealand
Starz zombie drama Ash vs Evil Dead was shot in New Zealand

Malaysia, with its 25% production incentive and the recent launch of Pinewood Iskandar Malaysia Studios, has already managed to lure Netflix original series Marco Polo and Channel 4 returning series Indian Summers to its shores. With the latter set against the backdrop of British rule in India, producer New Pictures initially looked at Simla in that country, but found it was too built up.

It also considered Sri Lanka, but was dissuaded by the fact that Channel 4 News had recently aired an investigation into alleged Sri Lankan war crimes, thus putting a strain on UK/Sri Lankan relationships.

Indian Summers, commissioned for a second season in 2016, was shot on Penang Island in north Malaysia. At the 2014 C21 International Drama Summit, director Anand Tucker described how “we had to recreate 1930s India and the Raj in the country. My job in setting up the show was also about creating the infrastructure. The most any local crews had done were a couple of movies or commercials, so it was also about training them to manage a 160- or 170-day shoot.”

While this can seem like a lot of effort up front, it is something executives at the distribution end of the process often value. Sky Vision CEO Jane Millichip points to productions like Fortitude (shot in Iceland) and The Last Panthers (shot in London, Marseilles, Belgrade and Montenegro). “Buyers like the sense of breadth and scale locations bring,” she says.

Joel Denton, MD of international content sales and partnerships at A+E Networks, echoes Millichip’s view: “We’d always look at locations as a marketing tool, maybe organising trips for broadcasters to see the production.”

So what does the future hold for location-based production? Improvements in green-screen technology suggest more productions could stay closer to home. But this needs to be balanced against growing competition among channels, which encourages increasingly bold location choices.

Inevitably some countries and regions will fall off the locations map as they come to the conclusion that their tax incentives are not having much of an impact in attracting work. But others will always take their place.

Italy, for example, has seen a resurgence in film activity following the decision to introduce a tax credit in 2009 – and it’s not far-fetched to think TV productions may follow. Colombia has also seen an upturn since introducing its own incentive scheme in 2013. With Turkey talking about something similar, it seems producers with itchy feet can continue to scour the globe for the perfect backdrop.

tagged in: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,