PERG News: March 2019

| PERG News: March 2019 |

Dear PERG Members and Associates,

In this issue:

• Getting the most out of RENTAL GUARD?
• PERG Netflix Panel for NAB 2019
• Pacific Northwest Lens Summit 2019
• GPS Leads Sheriff Deputies to Stolen Equipment in Barstow
• ESTA's Above & Beyond Award Recipients

Harry Box

Manager of the ESTA Production Equipment Rental Group (PERG)

Getting the most out of RENTAL GUARD?

| PERG News: March 2019 |

Here are four tips for all RENTAL GUARD users. 

1. Do your new employees know they can: 

• Make a New Customer Reference Inquiry to get independent verification of a new customer from other PERG members. 
• Check/download the Watch List of questionable customers. 
• Post a Questionable Customer Alert—to shut down potential criminals who may be fishing by alerting others. 
• Check serial numbers before purchasing used equipment. 
• Report missing equipment—It’s your best chance for recovering equipment and information in Rental Guard directly helps law enforcement take action and make arrests internationally. 

2. Reduce unwanted emails. You can elect to filter alerts, so you receive only the ones that are of interest to your business. From My Settings in your user profile, it is easy to customize your account using the check boxes shown below.

3. Your company can have as many people registered for rental guard as you need. Some companies set up a group email so they can control who gets added and removed internally. Or, you can have your employees register individually. Your choice. Either way, the more people receiving alerts, the better informed your staff can be! Please let us know if an email address at you URL is no longer valid by contacting Harry Box. 

4. Be sure your employees understand that your insurance does not normally cover “voluntary parting.” Customer policies often have a waiver for equipment taken from unoccupied vehicles. These are two of the most common methods of theft. For helpful tips see Members News and Resources on the Rental Guard site.

PERG Netflix Panel for NAB 2019

| PERG News: March 2019 |

PERG is delighted to be hosting a panel discussion with NETFLIX during PERG’s General Membership Meeting at NAB 2019. It is hard to overstate the impact that NETFLIX has had on the motion picture and television industry over the past few years. Several years ago, NETFLIX’s technical requirements for camera and image capture made it mandatory for their original shows to be captured in 4K resolution or better. The requirements even prompted prominent camera manufacturers to develop new cameras, like the top-end SONY VENICE CineAlta, to be in conformance. The requirements affect many aspects of production including lens options, image monitoring on set, color gamut and other issues related to LED lighting, and of course post production workflow. The practical implications for rental houses will be part of the discussion at the PERG Meeting on April 9th.

According to Variety, NETFLIX spent over $12 billion on content in 2018, and that number is expected to rise to $15 billion this year. Variety sites new streaming competition as one of the reasons NETFLIX is aggressively solidifying their market advantage. Media giants Disney, Warner Media, and NBCUniversal will be starting their own streaming services later this year. All this commerce is welcome news for camera and lighting rental houses.

PERG first started talking with NETFLIX’s Post Partnerships and Integration department when their Partnership Outreach Manager, Michael Keegan, attended the PERG Breakfast at Cine Gear 2018. Since then, we have been discussing ways for PERG and Netflix to work together to foster the exchange of information with our members. PERG created a Studio Outreach and Technical Resources webpage to help its members propagate detailed production guides (including recording settings for each approved camera type).

The next step was for PERG to invite NETFLIX to participate in an open discussion at our General Membership Meeting at NAB 2019. The panel will be made up of representatives from two prominent rental houses who regularly support NETFLIX shows, two DPs who have lensed those shows, together with a member of NETFLIX technical team. 

NETFLIX’s team has been as interested to learn about the challenges facing vendors as the vendors are to understand the priorities at NETFLIX. The NETFLIX vendor outreach team has been actively meeting with PERG members, identifying areas that raise questions for DPs and raise purchase decisions for rental houses. These efforts have identified some areas where there is confusion. Their active engagement is paying off. 

PERG plans to record the NAB meeting and make the presentation available to its members. PERG regards this as a first step in establishing an ongoing relationship with NETFLIX and expanding this conversation to other studios as well.

Pacific Northwest Lens Summit 2019

| PERG News: March 2019 |

Saturday May 4, Koerner Camera, Portland, will once again host the Pacific Northwest Lens Summit. Koerner is expecting 300-400 attendees from across North America. Something like twenty-seven lens manufacturers and lens accessory manufacturers are exhibiting at the summit. Tech training sessions, begin on Friday May 3rd. The classes are aimed primarily at rental house lens technicians, with two classes in the morning and two more in the afternoon:

• Angenieux 45-120 by Jean-Marc Bouchet or another Angenieux technician
• Zeiss Supreme Prime by Zeiss
• Cooke S4 by Duclos Lenses
• Angenieux EZ Lens by BandPro with Jeff Cree

Michael Koerner relates “Besides gaining valuable knowledge from a master lens technician, what may be even more worthwhile is the relationships the technicians build with their counterparts from other rental houses.”

Paul Duclos, of Duclos Lenses, shows technicians techniques
for servicing Zeiss Super Speed from the 2018 Lens Summit Training

Lunch on Saturday is sponsored by Abel Cine, beer sponsored by The Camera Department, wine and charcuterie by Whites Camera, and coffee and pastries by Duclos.

Attendees with find discounted hotel rooms, things to do in Portland, and registration link on the event website lenssummit.com. Koerner says “Registration is not required but it is nice to know how many we can expect, and we are planning to have preprinted name tags.” As in previous years, the Summit will include a showing by Portland’s own Unipiper, flaming bagpipes and all. The lens training and lens summit attendance are both free of charge. In addition, on Sunday May 5th, there is a master class on Jim Geduldick on Previsualization, which is being put on by The Oregon Media Production Association and sponsored by Fujinon. This event will be off site and tickets must be purchased to attend this class.

GPS Leads Sheriff’s Deputies to Stolen Equipment in Barstow

| PERG News: March 2019 |

On February 18th a truck taking equipment to a NETFLIX production was reported stolen. It was later recovered by California Highway Patrol, but the equipment was missing. GPS data indicated the truck has made two stops, and going to a location in the desert, Sheriff’s Deputies located and estimated $1,280,066 in stolen equipment in addition to firearms, methamphetamine, and drug paraphernalia. The following day, two additional items were located valued at about $80,000. There are four suspects listed on the police report.

Anyone with information regarding this incident is urged to contact Deputy Dickey of the Barstow Sheriff’s Station. Callers wishing to remain anonymous are urged to call the WE-Tip Hotline at 800-78-CRIME (27463) or you may leave information on the WE-TipHotline.

ESTA’s Above & Beyond Award Recipients

| PERG News: March 2019 |

The Entertainment Services and Technology Association’s (ESTA’s) Technical Standards Program (TSP) is pleased to announce the 2018 recipients of the annual Above & Beyond Awards! These awards are peer to peer, designed to allow Technical Standards Program volunteers to recognize other outstanding volunteers.

The awards celebrate those volunteers that have made a significant contribution or effort that advances the Technical Standards Program. The TSP exists because hundreds of individuals from across the industry volunteer their expertise and significant amounts of time throughout the year to write standards that increase safety, provide interoperability between different manufacturers, solve problems, and make life easier. These awards are particularly meaningful to the recipients because the nominations are made by their peers within the Technical Standards Program.

The 2018 Above & Beyond Awards are presented to: 

Sam Kearney (Control Protocols Working Group) was cited for having been “dropped into the E1.33 task group and immediately started pulling more than his fair share of the weight. Sam continued to pull the entire task group and document forward. He even brought the first wide reaching implementation of the standard to the Plugfest! He's a joy to work with and truly believes in building consensus, even when he disagrees.”

Art Wanuch (Electrical Power Working Group) was cited for having “been a strong, supportive and tireless leader in the development of the single-conductor feeder cable standard, keeping focus on the objective of the creation of this standard over an exceptional number of public reviews while guiding the task group to respond appropriately and substantively to all raised objections.” Art currently serves as the chair of EESA, the Entertainment Electrical Safety Association, in Canada.

Steve Serafin (Floors Working Group) was cited for having been “instrumental in developing ANSI E1.60, Guidelines for the Use of Raked Stages in Live Performance Environments. This standard provides guidance for the use of raked stages in live performance environments to mitigate the risks for the protection of actors and technicians.” Steve took on a considerable role in moving the task group forward, producing a quality American National Standard in almost record time. Steve is a Product Liability Specialist for Chubb Group of Insurance. 

Keith Sklar (Floors Working Group) was also cited for having been “instrumental in developing ANSI E1.60, Guidelines for the Use of Raked Stages in Live Performance Environments. Keith went above and beyond to bring years of experience and knowledge to the creation of a standards document that will help protect performers and technicians working on raked stages. Keith’s willingness to jump into the world of drafting technical standards concurrent with his role as a Business Representative at Actors’ Equity Association is exemplary.

Elmer Veith (Rigging Working Group) was also cited for “pushing standards into completion in a very short time, organizing his task groups, and attending just about every single meeting. Elmer is extremely knowledgeable in the rigging field, especially truss and hoists, and he uses that expertise to create thorough and complete standards.” 

ESTA’s Technical Standards Program is the only ANSI-accredited standards program dedicated to the needs of the entertainment technology industry. The standards created under the TSP are used directly or indirectly every day by almost every manufacturer, dealer, installer, production company and end user. These standards prevent accidents, protect lives and property, save time and money, solve problems, inform the industry, and enhance creativity.

The TSP is comprised of over 350 volunteer experts who devote time and knowledge to drafting American National Standards for the benefit of the whole entertainment technology industry. The TSP is always interested in any new member who wishes to join a working group. Information on getting involved with the TSP may be found at http://tsp.esta.org/getinvolved.

PERG News: November 2018

| PERG News: November 2018 | 

Dear PERG Members and Associates,

In this issue:

• PERG to Serve as Conduit to Members for Netflix Info 
• LiteGear’s LiteMat Fixtures Make All the Difference to Industry Professionals in Need
• RENTAL Guard Plays Crucial Role in $3M Recovery by Argentinian Police
• Lori Rubinstein Retires as Executive Director of ESTA 

Announcements

Major Theft Recovery—List on PERG Website.
On September 13, in a joint operation with officials from the Argentinian police, the New York Police Department Major Crimes Squad, the FBI and the U.S. Embassy in Buenos Aires, approximately $3 million in stolen cameras, lenses and other film equipment was seized in Buenos Aires. A list of items is available to view online at www.esta.org/perg_argentinarecovery. If you have been a victim of theft and believe that items on this list were stolen from you, you must submit information on the theft and either a police report detailing the items or an original bill of sale showing serial numbers to argentinarecovery@esta.org. See article later in this issue: RENTAL GUARD Plays Crucial Role in $3M Recovery by Argentinian Police. 

The AICP/PERG Oktoberfest, held in Manhattan on October 23rd, was attended by a record number of guests from all parts of the New York production community. The AICP’s Kristen Wilcha and PERG’s Paul Royalty addressed the assembly briefly to thank the sponsors and toast the success of this perennial co-hosted event.  

Work has begun on the 2019 Edition of the Digest of Fraud and Theft Prevention Measures. The PERG Council formed a committee to update the document, which was first released in April 2017. The 34-page document is informed by real-world, industry-specific incidents collected by RENTAL GUARD from hundreds of thefts between 2014 and the present. The Digest leverages our industry’s collective knowledge to provide our members with a unique resource. PERG members are invited to comment and contribute to existing topics or suggest others. Please contact harry.box@esta.org. PERG plans to release the updated document first quarter of 2019. 

The PERG Council held its fall executive meeting on October 23rd in Brooklyn, New York. The fall meeting is in large part a strategy meeting, planning the events and initiatives for 2019 including the PERG General Membership Meeting at NAB, AICP/PERG Cinco de Mayo party in Los Angeles, and the PERG event at Cine Gear, Los Angeles. http://www.esta.org/PERG/perg_council.html. 

Harry Box

Manager of the ESTA Production Equipment Rental Group (PERG)

PERG to Serve as Conduit to Members for Netflix Info

| PERG News: November 2018 |

As technology has rapidly evolved over the past decade, studios have been challenged to ensure that technical parameters used during image capture do not create headaches in postproduction. Global Partnership Outreach is a department within NETFLIX charged with communicating technical requirements and workflows for production, post production, and delivery. The department is actively reaching out to their production partners, rental houses, and post houses, to loop them in on their best practices, which help them achieve systematic, efficient production workflows. NETFLIX’s stated goal is to “innovate technologies and workflows while improving best practices and preserving creative intent.”

To help NETFLIX in this effort and to foster successful partnerships with PERG members, PERG has established a webpage, Studio Outreach and Technical Resources, which includes links to NETFLIX’s Prodicle Help Center and Camera and Image Capture Requirements. The Prodicle Help Center is an open resource for all technical specifications involving cameras, post production, dailies, mastering, archival and delivery. The Camera and Image Capture Requirements webpage includes details for 4K UHD resolution, recording format, spanned clips, black balancing, aspect ratio/framing, and a list of approved primary and secondary cameras. Under each approved camera, NETFLIX provides a Camera Guide—a downloadable PDF for each camera model that includes required capture settings and maintenance procedures. In some cases, lens coverage, sensor mode and HDR monitor details are also included. In addition, NETFLIX provides a wealth of information on acceptable storage methods, asset security/data management procedures, onset and near set color grading, color pipelines and more. 

The PERG Studio Outreach and Technical Resources page also features supplemental links and downloadable technical information provided by a variety of sources, which may also be helpful for rental house staff training, client education, and for evaluating and selecting equipment to meet studio objectives.

With 80 million subscribers worldwide, and 56.7 million subscribers in the U.S., NETFLIX has become a dominant force in original feature, series, and documentary production. Reporting in the The Economist cites data from a Goldman Sachs assessment, which estimates that Netflix will spend between $12 and $13 billion on content on a cash basis in 2018. Of this, 85% of new spending is earmarked for original series and movies, a wise move considering that more than 90% of Netflix’s customers regularly watch original programming. This year, NETFLIX provided their subscribers 82 new feature films. In comparison, the studio with the biggest slate, Warner Brothers, put out just 23 films and Disney released 10. According to Forbes, in 2018 Netflix “will produce or acquire an incredible 700 new or exclusively licensed television shows, including more than 100 scripted dramas and comedies, dozens of documentaries and children’s shows, stand-up comedy specials and unscripted reality and talk shows from an approximate 21 countries.”

PERG sees the possibility of a larger industry role to facilitate ongoing communications between studios/producers and our members. PERG has taken the initial step of sharing technical guidelines provided by NETFLIX as well as other helpful technical information provided by others. We will work to expand this resource to other studios and partners as time goes on. We invite our members and production partners to help PERG further develop these relationships and resources. (Please contact harry.box@esta.org to contribute).

LiteGear’s LiteMat Fixtures Make All the Difference to Industry Professionals Who are Seriously Ill or Injured

| PERG News: November 2018 |

Last year, LiteGear designated their LiteMat+ fixture to participate in the Behind the Scenes Pledge-a-Product Program which resulted in a generous donation of $7500. This year, owners Al DeMayo and Mike Bauman decided to take their support to the next level and designated sales of all LiteMat fixtures to benefit the charity. Recently, at their booth, they presented a check for $15,000 to members of the Behind the Scenes Board of Directors, representing an incredible commitment by the company, its employees and its customers to care for their colleagues who are seriously ill or injured.

LiteGear Inc., are designers and builders of LED lighting products for professionals in the Cinema, TV, and HD Video industries and are pioneers behind the popularization of flexible LED lighting for use in Cinema and TV lighting applications. The LiteMat fixtures are designed to offer soft yet controllable light for location or studio work. Available in 6 sizes, these bi-color LED fixtures are made of a composite of polypropylene and sheet aluminum making Series 2 LiteMat and LiteMat+ one of the thinnest and lightest luminaires in its category. Learn more about LiteMats at www.litegear.com.

Upon presenting the check, LiteGear CEO, Al DeMayo, stated, “With decades of experience working in the business, my partner Mike and I have worked with lots of great filmmakers. We are happy to know the “Behind the Scenes” charity is behind-the-technicians should they need it.”

Lori Rubinstein, Executive Director of Behind the Scenes, commented, “LiteGear and its staff have wholeheartedly embraced Behind the Scenes. Their generous donations will make an enormous difference in our ability to provide assistance to those who come to us in need, and they are playing an important role in helping to spread the word about the charity. Every shipment of LiteMat fixtures includes a letter letting the customer know the impact their purchase has just had. LiteGear has become a wonderful partner in helping us to fulfill our mission.”

The Behind the Scenes charity provides entertainment technology professionals who are seriously ill or injured with grants that may be used for basic living and medical expenses. For more information about Behind the Scenes, to donate, or to apply for a grant, visit www.behindthescenescharity.org. For more information about the Pledge-a-Product Program please contact info@behindthescenescharity.org.

RENTAL GUARD Plays Crucial Role in $3M Recovery by Argentinian Police

| PERG News: November 2018 |

On September 13, in a joint operation with officials from the Argentinian police, the New York Police Department Major Crimes Squad, the FBI and the U.S. Embassy in Buenos Aires, approximately $3 million in stolen cameras, lenses and other film equipment was seized in Buenos Aires.

Argentinian Federal Police became aware of an NYPD investigation related to the matter two years ago and police from the two countries then collaborated on a lengthy undercover operation. Authorities said they carried out 10 raids and were able to break up a criminal gang that stole the equipment in the U.S. and rented it on the black market to companies for the production of movies and TV commercials in Argentina.

ESTA’s Production Equipment Rental Group (PERG) has been working closely with the police to coordinate identification of recovered items. In addition to items verified through RENTAL GUARD, key industry camera and lens manufacturers and service centers have checked the serial numbers against internal databases.

There are still a large number of items whose ownership has not yet been identified. A list of items is available to view online at www.esta.org/perg_argentinarecovery. If you have been a victim of theft and believe that items on this list were stolen from you, you must submit information on the theft and either a police report detailing the items or an original bill of sale showing serial numbers to argentinarecovery@esta.org.

During the raids, the police used RENTAL GUARD, ESTA’s online searchable database of missing equipment, to verify that items had been stolen. NYPD Major Case Squad Detective Martin Pastor stated, “RENTAL GUARD was the main source used by the Argentinian police to check for stolen items. It is known globally as the industry’s centralized permanent database and is the most effective way to record losses. We have recovered over $10M in stolen equipment thanks to RENTAL GUARD. I urge anyone who suffers a theft to post it on RENTAL GUARD immediately, and anyone considering buying used equipment to search the database first to make sure the item is not stolen.”

Detective Pastor continued, “I would especially like to thank the members and staff of PERG for their vital assistance in the recovery. Everyone I contacted made themselves immediately available to help. This was a joint effort that could not have been accomplished without their participation.”

This case makes it very clear how important it is that equipment thefts be reported immediately to RENTAL GUARD. Having one centralized database that law enforcement anywhere in the world can access instantly can make the difference between a successful operation or one in which the thieves walk away because the police can’t verify that the equipment has been stolen. PERG has been actively working with law enforcement to educate them about RENTAL GUARD and to ensure it meets their needs.

RENTAL GUARD is part of ESTA’s Fraud and Theft Prevision Resources initiative and includes a missing equipment alert notification system and an online searchable database. Anyone may receive theft alerts and report stolen equipment free of charge. You must register to receive the email alerts. Visit www.missingequipment.org to sign up now.

Lori Rubinstein Retires as Executive Director of ESTA

| PERG News: November 2018 |

PERG members know Lori Rubinstein from her appearances at PERG meetings in conjunction with various PERG initiatives and the Behind the Scenes charity. You may not know that Lori was the first employee of the Theatrical Dealers Association, which was established in 1987 and which later became the Entertainment Services and Technology Association (ESTA). 

Under Lori's leadership, ESTA developed several significant, industry-defining programs. ESTA’s Technical Standards Program is responsible for creating ANSI-accredited national standards that enable the interoperability of equipment. These include standards that we take for granted, like the DMX512 lighting control protocol and many others, so essential to all parts of the industry. Another focus of the Technical Standards Program has been safety. ESTA’s standards, written by volunteer industry experts, lift the burden from city and state jurisdictions to attempt to create their own (inconsistent and sometimes uninformed) regulation of the entertainment industry. Under Lori’s leadership ESTA also created the Entertainment Technician Certification Program, a huge undertaking, to certify riggers and electricians, which has now taken root and become an essential part of ensuring rigging and electrical systems are safely installed, operated and supervised by certified people—providing benefit to both employers and employees.

In 2008, Lori invited the troubled Production Equipment Rental Association (PERA) to merge into ESTA, breathing new life into the group, which was renamed the Production Equipment Rental Group (PERG) as part of ESTA. Lori gave PERG her full support and was instrumental in the creation of RENTAL GUARD, the multi-featured fraud and theft prevention and recovery program. It is due to Lori’s ongoing work directly with law enforcement that our industry has been able to push back against the epidemic of theft by professional criminals (see RENTAL GUARD Plays Crucial Role in $3M Recovery by Argentinian Police, in this issue).

Lori has also been instrumental in the Behind the Scenes charity, which provides financial support for entertainment technology professionals in need due to serious illness or injury (see LiteGear’s LiteMat Fixtures Make All the Difference, in this issue). Lori’s steadfast commitment over more than thirty years have left a lasting legacy. But no less important to those who have worked with her has been the inspiration of her generosity of spirit, kind support, and sage advice. Her laser focus, energy, and professionalism is balanced with humor, humanity, and enjoyment of life. It has been a privilege and one of the great pleasures of my work with PERG to have Lori as my boss.

Fortunately for PERG, Lori will continue with some of the work that she has enjoyed most, supporting RENTAL GUARD, working with law enforcement, and running Behind the Scenes. None the less, we will miss her at ESTA. We honor her accomplishments and years of work on the behalf of the industry. We wish her a very happy retirement from ESTA. 

ESTA has named Erin Grabe to succeed Lori. Erin has been working in technical production in live events since the age of 15, including nine years working for Grand Stage Company as a sales associate, purchasing agent, and project manager. Erin joined the ESTA staff in early 2013 as assistant technical standards manager, working very closely with manager Karl Ruling. Shortly thereafter, she incorporated administration of ESTA’s association management database into her daily responsibilities. Through these duties she has interfaced with ESTA’s staff on all of the association's key programs and initiatives. ESTA president, Jules Lauve, states, “Erin has the full support of ESTA’s Board of Directors. We have total faith and confidence in Erin and her capacity to shoulder these new responsibilities.” Lori Rubinstein reflects, “Thirty years after helping to found the organization, it’s time for a new generation to lead the association. I have been wanting for some time to be able to put my full focus on the Behind the Scenes charity, which is at a critical stage in its growth.”

PERG News: September 2018

| PERG News: September 2018 | 

Dear PERG Members and Associates,

In this issue:

• AICP and PERG Members to Celebrate Oktoberfest
• New Representatives to Join PERG Council
• Adapting to Disruption by Leveraging the Fleet
• Call for Submissions and Comment –2019 Digest of Fraud and Theft Prevention Measures
• Moving House, a Unique Opportunity for Re-invention
• Behind the Scenes Holiday Cards are Now Available!

Harry Box

Manager of the ESTA Production Equipment Rental Group (PERG)

AICP and PERG Members to Celebrate Oktoberfest

| PERG News: September 2018 |

The AICP and PERG will once again be co-hosting our Oktoberfest Party in New York on Tuesday, October 23rd. Invitations are now being sent to PERG and AICP members via Eventbrite. If you are a PERG or AICP member and wish to receive an invitation, please contact the PERG Manager.

This will be the seventh year the two organizations have celebrated the New York production community over German sausage and beer. Last year the event was attended by about 250 people and the same is expected this year. The event has proved to be a great opportunity for networking and a good time for members of both organizations.

The event has earned strong support from event sponsors—many of whom do business with local AICP production company members—as well as PERG’s annual sponsors. One sponsorship is still available. Please contact PERG right away if you are interested in helping sponsor the event!

We look forward to seeing you there!

Sponsoring the AICP PERG Oktoberfest event is one of the ways our sponsors say thank you for your business.

New Representatives Join PERG Council

| PERG News: September 2018 |

The PERG Council is delighted to announce the addition of three new rental house representatives on the council. 

• Jim Martin, Chief Strategy Officer, SIM Digital, Los Angeles 
• Anna Mayo, CFO/Owner, MP&E Cameras and Lighting, Dallas 
• Sally Spaderna, Rental Manager, Koerner Camera, Portland 

The decision to confirm three new council members comes as two long-time council members come to the end of their terms. Debby Miller, Midtown Video, Miami, and Mark Wofford, PC&E, Atlanta will be stepping down at the end of 2018. Debby and Mark both made significant contributions to PERG’s growth and development over the past several years. The ESTA staff and fellow council members are grateful for their thoughtfulness, generosity, and sense of humor. 

This summer PERG issued a call for nominations for participation on the PERG Council. The council attempts to maintain diversity and have balanced representation geographically and by type and size of company. Jim Martin, whose responsibilities have included opening SIM’s offices in Toronto, Atlanta, and Los Angeles, brings 30 years of experience that includes, lighting, camera, and post production. Anna Mayo, who is a CPA, with prior experience in the insurance industry, and ten years at MP&E, has helped the lighting and camera company grow into locations in Dallas, Austin, Denver and Phoenix. With five years at Koerner Camera, Sally Spaderna heads up the Portland office. Koerner Camera—host of the 2018 Lens Summit—has offices in Portland and Seattle. The council looks forward to working with its new council members as PERG continues its mission to promote the interests of professional rental businesses, shine a light on issues that affect everyone, and be the voice of the rental industry.

Adapting to Disruption by Leveraging the Fleet

| PERG News: September 2018 |

By Jeff Tanenbaum, Tiger Group

The production equipment rental space is as dynamic and competitive as ever. That means it is imperative to efficiently and methodically leverage the value of a key asset—the equipment fleet. But disposing of excess inventory can be challenging and time-consuming. While digital sales channels like eBay or production-specific marketplaces are easily accessible, they generally represent management-intensive and less effective ways to dispose of equipment than working with asset disposition professionals. From a competitive standpoint, companies should focus on what they do best—renting equipment—not on racing to recycle that equipment online before it loses its value. 

[See related article, To Buy, or Not to Buy: Thoughts on the Analysis of Capital Purchases for Rental Inventory, by Joel Ordesky. This article ran in Spring 2016 issue of Protocol, the quarterly journal of ESTA.]

Many of the top names in the business, including the likes of Sony, Keslow Camera and Otto Nemenz, have leveraged disposition professionals for precisely this reason. Certain niche players focus specifically on selling pro-grade production equipment via global networks of regular buyers. In addition to recouping the maximum value for older equipment, these companies can also leverage their buyer networks to help clients find deals on new acquisitions. They are constantly engaged in list building and outreach campaigns to cultivate new buyers and sellers. Unlike many rental companies, disposition professionals have the time and resources to send emails and make phone calls to prospects domestically and internationally. They’re also experts in staging and marketing auction events and can feature equipment in “conglomerate auctions” with inventory from multiple sources. Some of these specialists also appraise equipment for lending purposes and/or provide the capital needed to make specific acquisitions, such as a specialty package for a key client.

For example, when Keslow Camera acquired Clairmont Camera and its Canadian operations in Vancouver and Toronto last year, the move more than quadrupled Keslow’s anamorphic and vintage lens inventory and added a substantial range of custom camera equipment to its portfolio. Naturally, it also led to some equipment redundancies. Selling that inventory to a third-party company helped provide significant operating capital to Keslow. The disposition company was then able to both auction the equipment on its own timetable and sell it directly to local, domestic, and international buyers on a private treaty basis.

Disposition professionals also work in creative ways to contribute to a company’s strategic efforts. For example, acquiring certain trade-in equipment from a major manufacturer at a locked-in price, supported that company’s ongoing trade-in program, which encourages customers to turn in old gear and buy newer models.

As technology has rapidly changed, the ability to recycle equipment has become important. Six to ten years ago, many rental companies saw the writing on the wall and made the decision to divest their classic film equipment—some selling their entire fleet. They wanted an expedient market sale to reduce the size of their film-based fleet, given the risks of rapid depreciation. In many cases, those sales were done by a third-party company that offered a fee-based solution.

The march of technology stops for no one. With more widespread adoption of large-format cameras, the industry can count on corresponding changes in customer demand and legacy equipment value. As the utility of vintage PL-mount lenses diminishes, it will be too problematic and costly for cinematographers, studios and rental houses to suddenly switch their entire fleets. These lenses, in other words, will retain value … for a time. Disposition professionals with substantial industry expertise and buyer connections can help companies discern the depreciation timeline and stay ahead of its curve. These companies’ ready access to global markets is part of what makes this possible. Currently, disposition companies are selling directly into China and India at a far greater rate than in the past and are cultivating relationships with specific, routine buyers. This represents a tremendous resource for sellers.

For third-party professionals, tasks such as finding new markets and buyers, understanding price points and establishing sale timetables to maximize results are all part of the job. This proactive, engaged and multilayered approach is far different from, say, posting equipment on a marketplace website or eBay. As PERG’s members continue to contend with tough competition and rapid change, their strategies will benefit from the suites of services available from niche disposition professionals focused on the production equipment space.

###

Jeff Tanenbaum, CAI, is an Executive Managing Director at Tiger Capital Group. Jeff has more than 30 years of experience in the industry and is a veteran auctioneer and liquidator. He is based in Westlake Village, California. jtanenbaum@tigergroup.com. soldtiger.com