PERG News: February 2018

| PERG News: February 2018 |

Dear PERG Members and Associates,

In this Issue:

• PERG Grabs Hot Topic for NAB Panel: Everything You Ever Wanted to Know About Online Rental Marketplaces But Were Afraid to Ask
• PERG’s General Membership Meeting at NAB 2018. Plus Other Upcoming PERG Events for your calendar
• PERG Reaches out to Canadian Rental Companies: Fujinon Hosts Rental House Get Together
• What Gives? $25 for NAB Meeting? RENTAL GUARD Gets a Makeover.
• Watch List, New Feature Available on RENTAL GUARD

Harry Box, 

Manager of the ESTA Production Equipment Rental Group (PERG)

PERG Grabs Hot Topic for NAB Panel

| PERG News: February 2018 |

Everything You Ever Wanted to Know
About Online Rental Marketplaces But Were Afraid to Ask

One of the hallmarks of this millennium has been the rise of e-commerce and the impact of disruptive technology on entire industries—Airbnb in the hospitality industry, Amazon in books, music, and . . . well everything else. Technological changes took these industries unprepared and found them flat-footed. Why did it take the taxi cab companies years to devise their own apps in response to Uber? By the time they understood what was happening, the game was over. 

Online rental marketplaces are experiencing very rapid growth. ShareGrid reports that its rental marketplace includes over $300 million worth of gear, over 32,000 members, and an average monthly revenue growth rate of 19%. Both ShareGrid and KitSplit are now renting in half a dozen U.S. cities with plans to expand to other cities in the U.S. and Canada. A lot of rental companies are wondering how this will affect professional rental companies, and more importantly, what they should be doing to adapt and market their own strengths.

To help our members stay on top of this, PERG has invited principals from KitSplit and ShareGrid to join a panel discussion at PERG’s General Membership Meeting at NAB on April 10th. The panel will also include principals from rental houses and a veteran production company creative (panelists to be named soon). This is a unique opportunity to learn more about the challenges of online rental platforms and discover possible opportunities that the digital world may bring to our industry.

The mission of online equipment rental marketplaces is straightforward. As KitSplit’s website explains it, “our community marketplace connects creative professionals with owners of top notch equipment, including production companies, individuals, and rental houses.” Appealing to a generation accustomed to conducting their affairs online, their pitch is that they make rental instantaneous, streamlined, enjoyable, easy, and worry free. The complicated hassles of renting are all taken care of—insurance, rental applications, credit checks, contracts, fast direct payment and, if you want, they’ll help you choose equipment. The platform gives equipment owners instant access to thousands of customers, and vice versa.

PERG held separate meetings with KitSplit and ShardGrid in October of 2017. The meetings were initially to discuss industry theft. What we learned tested some of our assumptions. For example, both companies explained their automated customer vetting capabilities that include a combination of two-step phone verification, bank-level security questions, State ID or passport verification, verified credit card, as well as manual verification if needed. Both companies boast proprietary algorithms for assessing user behavior that they say gives them a unique edge and has detected fraudsters who later stole equipment outside their membership community. Like Airbnb and Uber, they also use an owner/renter mutual rating system that incentivizes desirable behavior and makes shortcomings public information.  

As internet startups, these companies are nimble and ever-adapting. They have refined analytics to help them make business decisions. What lessons can traditional rental houses glean from their business model? Is this a viable way to market rental company assets, equipment, check-out space, and services?

PERG looks forward to hosting the panel on April 10th and helping focus industry attention on these challenges. If you plan to be in Las Vegas, we hope you will join us and take part. 

RSVP for PERG's General Membership Meeting at NAB 2018

| PERG News: February 2018 |

RSVP here. Each year PERG brings together rental companies from across the country and around the world to network, enjoy refreshments and discuss the issues that face the industry. Members and non-members are invited.

Tuesday, April 10th, 4-7pm

Embassy Suites Hotel (3600 Paradise Road, Las Vegas, NV)

Other Upcoming PERG Events (for your calendar):

• AICP/PERG Co-host the pre-Cinco de Mayo Party – April 26th (members only)
• PERG’s Rental House Breakfast at Cine Gear Expo – June 2nd

PERG Reaches out to Canadian Rental Companies: Fujinon Hosts Rental House Get Together

| PERG News: February 2018 |

We are an international trade association. That was our message to rental companies during an informal get-together at Kelsey’s Original Roadhouse in Toronto on January 24th. Rental companies share similar challenges. Membership in ESTA/PERG is an opportunity for industry partnership with other thought leaders. There is value for Canadian companies in being a part of it, and there is value for PERG in having the weight of these important companies at the table. 

The get-together was sponsored by Fujifilm/Fujinon and arranged by PERG Council member Stosh Durbacz (Fujifilm) and myself. During my time in Toronto we were able to visit seven rental companies and we were given a gracious reception at every stop. We were able to sit down with the principals from each company and compare notes on a range of challenges and opportunities from theft and fraud, to possible industry events. It was a real pleasure to see the facilities—from the chic rustic oak check-out bay benches at 2D House, to the spotless and efficient setup at Dazmo, to the expansive William F. White Centre with its visionary new camera prep area. Paul Mason (Panavision), Stewart Aziz (Keslow), and John DeBoer (SIM) each generously shared their time. The companies, which are all current PERG members, were able to give us their perspective on future PERG initiatives currently under discussion by the PERG Council. While there were perhaps a few small distinctions to be found, on the whole Canadian companies share the same challenges as PERG members south of their border.

With about 30 shows currently shooting in Toronto, and the next installment of Star Trek gearing up to shoot at Pinewood Toronto Studios, the town’s rental companies seem busy and healthy. While it is yet to be seen how the Canadian companies will choose to engage with our association, PERG is glad to have taken this first step of knocking on their doors and extending a handshake. 

What Gives? $25 for NAB Meeting?

| PERG News: February 2018 |

When you RSVP’d for the NAB Meeting (you did RSVP, right?) you will have noticed PERG is asking attendees to make a minimum suggested donation of $25. The NAB event itself is funded by the generosity of our sponsors, so what’s the 25 bucks for? The donations go to fund an important upgrade to RENTAL GUARD, which launched in November of 2017. 

In order to pay for the upgrade, PERG launched a GoFundMe campaign at last year’s NAB meeting.  So far only 18 companies and individuals have given, many of them very generously, but this has raised just $8,700 of our $35,000 goal. The beauty of a grassroots fundraising effort is that it does not take huge contributions to achieve the goal. If everyone who has benefitted from RENTAL GUARD chipped in $100 we would meet our goal. 

RENTAL GUARD has achieved impossible things for the rental industry. It has aided in the recovery of millions of dollars of equipment. It has helped companies avoid losses via fraud. Law enforcement is engaged as they have never been before. RENTAL GUARD has provided our industry hard data on how thefts are occurring and helped us strengthen our defenses. 

Why do we have to bother you? Why don’t we just ask someone with deep pockets? Others have already given generously to RENTAL GUARD or other PERG activities. For example, the development of RENTAL GUARD and the annual maintenance fees for RENTAL GUARD are paid jointly by five sponsoring insurance companies: Allianz, Chubb, Hiscox, One Beacon and ProSight. PERG’s annual 2018 events are covered by generous sponsorship from Allianz, ARRI, Core, Panasonic, Panavision, Taylor & Taylor Associates, and Vitec Videocom and that’s not to mention the many companies who have sponsored our individual events or picked up the tab for a mixer—as Fujinon just did for PERG rental house get-together in Toronto.  

PERG is lucky to have tremendous support every year from all parts of the industry. We raise a significant amount of money each year, and we spend the entire amount—and more—on events and activities that directly benefit our members. 

No, sadly the $25 is not for me to take my wife to visit the castles of Europe or to fly a private jet down to inspect the gold at Fort Knox. It is just a way to fund PERG’s fraud and theft prevention program in the most painless way we could think of. 

Please help us fight fraud and theft and make the industry a better place! 

We hope to see you at our NAB meeting. Click here to register.

If you can’t join us, please support RENTAL GUARD by contributing to the GoFundMe campaign.

The Watch List: A New Feature on RENTAL GUARD

| PERG News: February 2018 |

We encourage all members to take advantage of this new feature, now available on RENTAL GUARD. 

The Watch List consists of more than 80 names provided to Rental Guard in either a Missing Equipment Report (where the customer did not return the equipment), or a Questionable Customer Alert, or by law enforcement. The list is downloadable in a variety of file formats for easy integration. The list contains live links to the original report.

Users should keep in mind that names in the Watch List may be fictitious or assumed or may be the actual names of real individuals not connected in any way with the rental incident, including individuals whose identities may have been stolen.