meeting with a cost consultant - act 1, scene 1

Imagine if a group of top production company owners sat down with a powerful cost consultant. A cost consultant who represents a major corporation and all their subsidiaries. Let's write the script. 

INT. NIGHT - SLEEK CREATIVE SPACE,  Santa Monica CA 

We open in a vibrant office. It's 6:30 PM. The office is still bustling with energy. Young hipsters populate the space. As the camera moves through the office we peer into a glass walled conference room. On the table is a perfectly designed cheese spread, an open bottle of chardonnay and another of pinot noir. Around the table a group of 8 people, all drinking wine, are listening to an older gentlemen at the head of the table speak. We pick up the conversation in mid-sentence.

COST CONSULTANT

...I hear you. I sympathize with your problems but my clients are hurting too. Their margins are down. Stock prices are taking a hit. We spend a lot of money in advertising for less results. I'm telling my clients, I don't even know what agencies do for them anymore. And believe me, I'm getting beat the shit out of too. 

PRODUCTION COMPANY OWNER # 1

Everyone's taking a beating. We're grateful for the work. But...we aren't interest free banks. We're scared we won't get paid in time or at all. These payment terms. This fuckin' sequential liability thing. It's all bullshit.

COST CONSULTANT

That's from the agencies not from us. We pay very timely. 

PRODUCTION COMPANY OWNER # 2

Then you're the exception. Try dealing with a US car company. 

PRODUCTION COMPANY OWNER # 3

Maybe our contracts should be directly with the clients?

COST CONSULTANTS

That's an idea we would consider. But you have to understand. My clients are willing to negotiate but they'll only give up something to get something back in return. What would you give up to get 100% up front and contracts directly with them? 15% mark-ups?

PRODUCTION COMPANY OWNER # 1

Whoa. Let's not go crazy here. We're doing all this heavy lifting and we're making no money. Take for example our production fees (pause) that's right you already want to. Once we pay director participaction, sales commissions and overhead we're left with almost nothing.

Outside the office we see a 21 year old intern unsure whether to knock on the door or not. He peers through the glass wall hoping someone will notice him.

PRODUCTION COMPANY OWNER # 1 (CONT'D)

We take on all the liability and make the least amount of money. The directors make a fortune. The sales reps make a fortune. They take no risk. We get crushed and you guys still want your fancy client dinners and work out of our cool offices. Who do you think is paying for all this...

Unable to get noticed, the intern finally knocks on the door. Production company owner #3 signals for him to come in. Production company owner #1 just keeps talking ignoring the kid as he enters the conference room. 

PRODUCTION COMPANY OWNER # 1 (CONT'D)

...all you want is more, more and more for less, less and less. We're going to break soon. They'll be nothing left.

KID (meekly)

Excuse me.

PRODUCTION COMPANY OWNER # 1

We're all going broke. I'm barely making ends meet. 

KID 

So sorry to interrupt. (The room goes silence for a second). Who's driving the white BMW 750i? It's blocking two cars in the lot.

PRODUCTION COMPANY OWNER #1

That would be me.

He takes the keys out of his pocket and tosses it to the intern. Picking right back off where he ended

...it's like we're running a friggin' charity... 

He pauses for a second as the intern is exiting.

Hey kid, that's a new car. It's a limited edition so be careful when you back it out. As I was saying...the money...

FADE OUT

What's the moral of this tale? We are pleading poverty and not doing a very good job of hiding it? It's not really the moral but kinda true. 

Production companies are not going broke but we are working harder and taking on more liability for less profit. The problem is what Pat Riley (former Laker, Knicks and Heats coach and all-around basketball guru) dubbed the "Disease of Me". 

The fight to maintain everyones own financial interest is being done at the expense of the overall health of the industry. Advertising. Content. Marketing. Audience Building. All of these have great potential to be areas of growth. Fighting over pieces of a failing business model won't create the new landscape where everyone can prosper. Or inversely put, it won't create a climate where risk, sacrifice and innovation are rewarded, encouraged and most importantly, shared.

The Disease of Me. More on that tomorrow.