| PERG News: March 2021 |
In this Issue:
Wednesday, March 10, 2021
PERG Council—A Call for Nominations
Would you like to help decide the future for PERG? PERG members are encouraged to make nominations or nominate themselves. Nominations are accepted through the end of the third quarter. The next term begins in January.
What is the benefit of serving on the PERG Council?
Give back. Make friends. Have a front row seat. Make a difference to the industry. Help spearhead action on issues that are important to everyone. Make a lot of new professional connections. Represent the distinct interests of companies like yours. Have fun!
What does the Council do?
The PERG Council is the advisory body that decides the direction of the PERG group and represents PERG members’ concerns and desires in Council meetings. The PERG Council is responsible for developing our annual events, meetings, and parties; and our initiatives like RENTAL GUARD, the AICP/PERG sample T&C document, Data Security Best Practices documents, Lithium Ion Battery Shipping documents, industry surveys, and so on.
What is the commitment for Council members?
The PERG Council are volunteers. The Council has four scheduled meeting annually to which Council Members travel at their own expense. The term of office for the Council is three years, with an option to continue after that time.
How is the PERG Council different than the ESTA Board of Directors?
The ESTA Board of Directors governs the overall international trade association and are elected to office by the entire ESTA voting membership. The PERG Council is only concerned with matters related uniquely to PERG members—the motion picture/TV/commercial rental companies—which is a special interest group within ESTA. Council members are appointed in accordance with PERG’s rules of governance.
What kind of people are on the Council?
The Council is made up mainly of principals and owners of lighting and camera rental companies. The council also includes a limited number of representatives from manufacturing and professional service companies.
Do I have to be on the Council for my voice to be heard?
Every member has a voice in the organization. Any member who has suggestions, ideas, comments, and criticisms is encouraged to speak to a Council member or the PERG manager. The door is always open. Member involvement and feedback is one of the most important and appreciated driving forces of the organization. The PERG Council members act as representatives for the general membership.
What is the intended makeup of the Council?
At any given time, there are at least 9, and as many as 17, Council members. PERG maintains guidelines for its governance that include criteria for the selection of Council members. To achieve a balance of individuals and interests committed to furthering the goals of PERG, the Council considers the following:
- Geographic diversity of members
- Representation of both camera and lighting companies
- Gender and age diversity
- Candidates must be committed to attending meetings and other PERG events
- Candidates must hold decision-making authority within their organizations. They must be able to express opinions and vote in Council meetings without higher authorization from someone in their company.
- Candidates must be willing to serve on a task group(s)
Who should I talk to if I’m interested in being on the Council?
If you are interested in serving or nominating someone to serve, speak to a Council member or the PERG Manager.
Who are these wonderful people you call the PERG Council?
Carly Barber, Illumination Dynamics
John Cini, High Output Inc
Lawrence Daufenbach, Daufenbach Camera
Stosh Durbacz, FUJIFILM North America Corp.
Derek Hammer, Hammer Lighting and Grip
Chris Konash, Panavision
Anna Mayo, MP&E (Chair)
Alex Pakarian, The Camera Division
Paul Royalty, Litegear
Sally Spaderna, Koerner Camera Systems
Scott Taylor, Taylor & Taylor Associates
New Subrental Tool for PERG Members
Thursday, March 18th
12 p.m. Eastern | 11 a.m. Central | 10 a.m. Mountain | 9 a.m. Pacific
Join fellow PERG members for a live demonstration of the new Subrental Availability Request feature of RENTAL GUARD. The tool enables members to leverage the PERG network to quickly locate hard-to-find subrental items. The feature is intended to help save your staff time and enable you to receive requests from other members to sub-rent gear. It is free and available exclusively for PERG members.
Come check out the demo and see how to configure your account settings to start receiving the subrental requests you want.
Cinematography World (Free subscription for PERG members)
Cinematography World is offering PERG members a FREE annual subscription to the magazine!
To get yours, just fill out this form.
If you opt for the print edition option, Cinematography World will respond to you with a code and link to continue your subscription and confirm the postage fees. To ensure you receive CW002, please sign up for your subscription as soon as possible. This offer is available for ESTA members only.
Cinematography World is a new publication with a global perspective on cinematography. The magazine’s editor, cinematographer Ron Prince, formerly of British Cinematographer, writes “Cinematography World embraces the global community of cinematographers and their collaborators involved in the art and craft of visual storytelling.”
PERG has already enjoyed the publication’s sense of collaboration. In January, Cinematography World reached out to PERG asking to how things are going in the trenches at rental companies. PERG spoke with five member companies to take the pulse and ponder the future, contributing to Michael Goldman’s piece titled The Industry Lens.
Price explains how his publication aims to encompass more of the cinematography eco system, with greater attention to industry partners. “In terms of the word “world” we will be not only be more geographically diverse in our coverage, but also that we will cover more of the people and organizations who collaborate together with cinematographers on productions. We all know that production is a team effort, and we want to champion and celebrate the team players.”
Cinematography World will deliver six printed editions per year and is also available in digital format. The print edition is complemented by an online version featuring additional exclusive content and a monthly newsletter.
In his editorial column, Price writes “Please feel free to get in touch. Please keep sending us your news and let us know about the interesting, exciting and innovative projects you are working on, that you hold dear to your heart. And we will do our very best to give you, or your organization, the credit you deserve.”
NETFLIX D&I Outreach
Many of today’s studios and ad agencies have implemented policies to use some portion of their buying power to foster the growth of small businesses that are owned or run by underrepresented groups such as women, African Americans, Latinx, LGBTQ+. NETFLIX reached out the PERG with the message that they are working to identify vendors that might fall into these categories. If your company is owned by a person in an underrepresented group, or if top positions are held by people in those groups, NETFLIX would like to know that. NETFLIX produces shows of all sizes from documentaries up to feature films, so regardless of your company size, this could represent an opportunity.
To convey this information, reach out to the NETFLIX operations department. (Contact Harry Box if you need contact information). Identify yourself as a PERG member, and say that you are responding to the D&I Outreach information in the PERG newsletter.
Pandemic’s Impact on Rental Companies
In conjunction with Michael Goldman’s piece in Cinematography World, PERG reached out to a handful of PERG members to help assess the ways the pandemic has affected rental companies. What follows are some of my notes from those conversations. (Michael’s piece included interviews with additional people as well as great photos that represent this moment in time, so please check out his piece too).
With business completely dead for two months, in aggregate, members reported revenues down 50% relative to 2020. In the 4th quarter generally revenues were 70-80% of previous year. In many markets, early recovery of the commercial market helped. By mid-June things started to come back in New York, driven primarily by commercials in July and August. The Independent Association of Commercial Producers, AICP, were extremely proactive in their response to the crisis. No small amount of credit goes to Matt Miller and his staff. By late August early September commercial business was back to normal volume.
Industry-wide efforts to gather and publish guidance—PERG’s Safe Return to Work Guidelines in April, and the Industry White Paper in June, as well as AICP’s guidelines put our industry on track to get productions restarted as soon as possible.
But aside from the obvious overall impact on volume of business, there have been other lessons from the shutdown. Erik Schietinger (TCS, New York) described the hard meetings that were held discussing layoffs and furloughs in the early days of the crisis. “The biggest lesson for us has been the value of our employees. As a company, we feel fortunate to have the talent that we have. You cannot snap your fingers and bring together a crew like this. You have to take long view. With the PPP loan and other help we were able to get through the worst of it. In the end, we only furloughed people for eight days in April and laid off two people, one of whom we were able to hire back.”
 |
| DGA staff of video shoot at High Output’s Charles River Studios. |
 |
| Pictured from left to right: Jeremy Stark, Aliza Ouellette, and Jason Kaplan of High Output’s Production Department producing a high profile streaming fundraiser, live-switching 6 zoom video feeds. |
Rental companies have had to be innovative in the ways they provide customer support, and maybe some of those innovations will stick after social distancing and mask-wearing become things of the past. Production companies established protocols that prohibited outsiders from coming on set—eliminating crossover. This was better for everyone. In fact, Chris Konash (Panavision, New York) relates for tech to make a set visit, it has to be approved all the way up at the executive level. Instead, he says, techs provided one-on-one service by talking the AC through it using Facetime, Zoom or Teams. These services have proved helpful for meetings with DPs and others, but in the end, people often want to come in and hold the equipment in their hands.
Although early on, at the beginning of the shutdown, the idea of a “remote prep” was floated briefly. ACs hated the idea. Unions hated the idea. Rental houses quickly gave up on that and instead took steps to make visitors safe in their facilities.
Erik Schietinger (TCS, New York) says “The biggest thing we did was put tablets into the prep bays. It turned out to be hugely beneficial in more ways than we’d planned. We did it to allow the prep tech to be socially distanced, so they don’t have to stand there talking directly with the ACs, but it had other benefits because we could include the rental managers on the chat.” It improved communication and made it less likely details could be lost or errors made. “That’s something we are going to stick with going forward.” Schietinger reflects, “The pandemic has taught us to be more agile.”
The Koerner Pacific Northwest Lens Summit in Portland is a favorite event for lens tech training and for ACs and DPs to ogle products from two dozen optical and accessory vendors. In 2020 the summit had to be held virtually. While hugely disappointing not to be able to host people in person at their facility, Sally Spaderna (Koerner Camera, Portland) says, “It opened door for people to attend from countries all over the globe, lens techs from Russia . . . people who otherwise would never have come.”
 |
| Camera prep at Koerner Camera (Photo by Maurice Morales) |
 |
| Matt Gromley, AC "Testing an alternative-retro-after-market macro lens gag." (Photo by Kari Fouts, Koerner Camera Systems) |
 |
| Reception desk at Koerner Camera, Portland, complete with sign-in sheet, gloves, and clean and used pens, touchless hand sanitizer, thermometer and pulse oximeter. (Photo by Kari Fouts, Koerner Camera Systems) |
 |
| Covid-safe camera prep with DP Corey Rood." (Photo by Michael Koerner, Koerner Camera Systems) |
One of the most effective measures taken by many rental houses was to have a strict schedule for clients coming to the facility. A key component (something that came out of the PERG Protocols) was the use of a Health Questionnaire that crew fill out ahead of time. It establishes that people are healthy, but it also gives the rental house a clear head count and schedule for visitors. If you know how many people are coming in you can accommodate larger crews in separate “feature” prep rooms. Andy Shipsides (ARRI Rental, Los Angeles) relates “We've really improved efficiency. Before we were very loose about people coming and going from the building. Now everyone is set up with appointments. It got us thinking about being more purposeful in our interactions with clients.”
Sally Spaderna reflected on a change she has made in her interactions with clients. “I take more time to talk to people on the phone. In the past it was just work. Now, I will take the time to ask ‘how are things going in your state.’” The pandemic has isolated people, she says. “I have established relationships with all kinds of people including other rental companies, chatting about all kinds of things—PPE orders, COVID-related shutdowns, the US versus Canada, the weather, politics . . . I have taken the time to have that human connection. People really wanted to talk and I think I needed that too.”
Some people wondered if the increase in content bound for distribution via streaming services (and likely viewing on small screens) could start a shift towards lower resolution capture equipment. Chris Konash says “We have not seen a change in habits for capture equipment based on the intended display format. Plenty are asking for large format cameras and lenses. They still have to protect for future distribution.” Sally Sapderna says the same. “We see a lot of large format. The Mini LF is hugely popular, along with large format lenses. Venice is very popular, which may have to do with its capability when you lack light.”
“It is dangerous to bring up small screens around cinematographers.” Erik Schietinger says wryly. “It is a desecration of their craft. But I don’t see the higher-end market shifting. Over the past ten years, how many times have you heard that this new technology—the Go Pro, the iPhone, whatever—is going to change the way movies are made? Cinematographers are always going to preserve the quality of the image. I had a cinematographer shooting something for Instragram who needed to shoot in a vertical format and wanted to test cameras shooting sideways. So, in that way he is adapting to how things are going to be viewed, but that does not change his decision about what kind of lenses he uses.”
Primarily rental houses are supporting a lot more monitors and monitoring systems on set. You have more use of portable camera-top encoders and rack-mounted encoders for IP video applications. An encoder enables Wi-Fi transmission of the signal that can be watched on anyone’s phone or transmitted over the Internet. For security reasons, many productions do not send unencrypted signals over the internet, so that does not work for everyone. Crowding around the monitor is well worn tradition that has obvious advantages for communicating when several people need to give input. For now that is suspended, and even after the pandemic, the freedom of ease of access to the image is likely to continue this trend.
 | ||
| Edwin Lee, North American Service Manager with Fujinon’s new Premista 80-250 zoom at Fujifilm-Optical Device Service Headquarters in Wayne, New Jersey.
|
A cottage industry has sprung up to handle live transmission to clients from set. New products like Teradek’s CUBE, SLICE and T-rax provide High Efficiency Video Coding (HEVC) and H.264 codecs that offer good image quality for IP video applications. The wireless video tech has become an independent crew position with wireless station that has it all, including solving challenges like connecting to the internet in remote locations and integrating with streaming platforms like Facebook live.
Mark Wofford (PC&E, Atlanta) who runs two sound stages as well as camera and lighting rental, says that many of the commercial clients and agencies have grown more comfortable with monitoring production remotely, and they have seen the cost savings from not having to travel. This is something that might change the norm for commercials.
Glenn Vanderlinden (Insight Equipment, New York) relates that in many ways the pandemic accelerated use of remote tools that were already widely using, like lighting control networks, LED lighting, and remote operated camera heads. Glenn sees the impact the pandemic has made onset and feels for the production crews. “What I hear is that working this way is more stressful for the crew. Daily testing and constant mask wearing, it is a hard way to work. In shooting, there are always obstacles. I think our industry, the way people have been acting, we’re going to hold out. In this business, if they give us a challenge, we are going to figure out how to do it.”
Generally, companies are optimistic about the second half of 2021. There is a high demand for streaming content and many people are saying it may be as busy as we have ever seen it. People also sorely miss the movie theaters.
Enjoy PERG Coffee Breaks on YouTube
In lieu of PERG’s customary in-person events, we’re holding online events to bring members together and hear from experts on topics of interest. All PERG members will receive invitation to attend the events in person, but if you miss one, they will soon be available on the ESTA YouTube channel.
- It’s More than Just Gear (Oct 8th, 2020)
- CARES Act PPP Update (Jan 28th, 2021)
- Vaccines and Legal Questions (Feb 2nd, 2021)
- Protecting you Battery Investment (Feb 23rd, 2021)
PERG looks forward to hosting a variety of online events in 2021. Possible events that are under development include:
- Demo of RENTAL GUARD’S New Subrental Feature [link to registration page]
- News and updates from CineGear, NAB, and maybe even IBC.
- Mental Health Coping Tools for Entertainment Workers
- Forward-looking discussions about production methods and technology
- Diversity and Inclusion – a trending action of major employers
- The future of rental software
If there’s a topic you’d like PERG to create an event around, let us know. We’d love to hear from you.
Toolbox Talks for Mental Health—A New Initiative of Behind the Scenes
The Behind the Scenes Mental Health Initiative wants language about mental health and respectful workplaces to become a part of every toolbox talk or safety briefing because psychological safety is as important as physical safety.
It’s not always an easy subject to talk about though, so to make it easier for those delivering these talks we are suggesting topics and providing sample language that can be used as is or tailored to fit individual needs. Find out more at btshelp.org/toolboxtalks.
It is important to acknowledge the mental and physical stressors and challenges faced by all of us in the entertainment industry and offer your team tools to help them better manage and respond to these challenges. We know that the last months in particular have been very stressful and returning to work is bringing a new set of concerns for everyone. Many people are struggling with anxiety, grief, feeling overwhelmed, inability to concentrate, changes in appetite or sleep, changes in drinking or substance use patterns, or other issues affecting daily functioning.
In addition to the sample language provided under each topic, we also offer a selection of brief pre-scripted talks. This information is meant to be incorporated into existing safety or toolbox talks and is not meant to replace other safety briefings.
For those needing to gain management approval to incorporate language about mental health into their talks, we offer some key reasons why it is important to talk about mental health and psychological safety in the workplace.
Behind the Scenes has collaborated with other concerned organizations and individuals to create the Mental Health and Suicide Prevention Initiative. A series of tools and resources has been developed to not only help you but also assist you in helping your colleagues, friends and family. Find links to additional tools and resources and information about the initiative at btshelp.org/mentalhealth.
Wednesday, October 14, 2020
Made Personnel Changes? You May Need to Update Your RENTAL GUARD and Other Accounts
| PERG News: October 2020 |
RENTAL GUARD. Your company is permitted to register as many employees as you like for RENTAL GUARD. Some companies choose to have one account and distribute the alerts internally, which is also a great way to handle it. We have deleted a few dozen RENTAL GUARD accounts after receiving bounced emails, so please be sure the right people are registered at you company. Register here.
PERG Newsletters. Please just shoot Harry an email with the email addresses of people you would like to receive PERG’s Newsletters (normally there are seven issues annually). The Newsletters are a great way to stay current on PERG initiatives and topics of interest to PERG members.
Your Main Contact. Most PERG event invitations and other communications are sent to the main contact you provided. If that person may have changed, please go online and edit your account or contact us with an update.
We hope to see all our members returning to full staffing soon! Please keep us updated.
PERG Brings Members Together in New Online Meeting Format
| PERG News: October 2020 |
PERG's in-person annual events have been a staple for many years, bringing the rental community together for discussion, networking, and camaraderie. While our normal line-up is suspended during the pandemic, PERG is hosting a series of online events we’re calling PERG Coffee Breaks (or if it happens in the evening, we’ll call it PERG Happy Hour). On October 8th, PERG held the first of a series of member-focused, online events. The event was titled “It’s More Than Just Gear,” and featured a question and answer session with Jonathan Holiday (Tiger Group) regarding disposing of underutilized equipment and staying ahead of the utilization curve (see It’s More than Just Gear, below). Over 80 people attended the livestream. We heard back from over 170 individuals expressing interest in the event. An active chat took place, where members exchanged views and posed questions for the speaker in the margins of the livestream.
PERG’s aim is to bring the membership together and offer an opportunity to check in, hear from knowledgeable speakers, and from one another, on topics that matter to rental companies. The concept is to keep these events short and sweet, so they fit into the daily schedule of busy rental company personnel. Streaming content or Zoom-style town-hall events offer PERG a unique opportunity to hear from our members and engage on subjects that affect the industry.
The PERG council is actively discussing presenters and topics for future Coffee Break events. For example, if and when the congress authorizes CARES Act PPP disbursements, PERG will host Mark Morales, Vice President—SBA Lending at City National Bank, to brief us and answer questions.
Other events under consideration include a Happy Hour co-hosted with the AICP with discussion of COVID-19 issues in commercial production. We are reaching out to our sponsors and to equipment manufacturers for technical, gear-oriented discussions. PERG will hold a Coffee Break event soon to demonstrate an exciting new feature of RENTAL GUARD, PERG’s Fraud and Theft Prevention program.
Please let us know if there's a topic, speaker, and company you'd like to have at a future event (see PERG Surveys Member Interests).
The first PERG Coffee Break was sponsored by our annual sponsors, Canon, Panavision, and Taylor & Taylor, and by Fujifilm, Koerner Camera, Lux Lighting, LiteGear, NFP, The Camera Division, and Tiger Group. We greatly appreciate their support.
BTW! Enjoy some truly amazing YouTube content by PERG Sponsors: Koerner Camera, Lux Lighting, LiteGear, Panavision, The Camera Division, Fujinon Lenses, Tiger Group
PERG Surveys Member Interest
| PERG News: October 2020 |
Take this brief survey and help us identify the topics you most want to hear about. The results of the survey will be distributed to our members so you can see what others are thinking too. The survey closes October 23rd, so please respond now while you’re thinking about it.
| Take the Survey |
Sprayers and Hand Sanitizers From PERG Members
| PERG News: October 2020 |
If your company offers solutions that could help other members, let us know!
Location Station Sanitizer Dispenser from Rob’s Rain Hats/Hammer Lighting and Grip
The Location Station Sanitizer Dispenser is a handy, refillable, automatic hand sanitizer dispenser that was designed especially for working on set and can be mounted wherever you have a C-stand, light stand, or clamp with a 5/8 baby pin or a 1-1/8" Junior receiver. Designed to set up and tear down very quickly, the dispenser can be filled with gel or liquid sanitizer of your choice and runs on 8 "AA" batteries.
Derek Hammer
Rob’s Rain Hats, a division of PERG member company, Hammer Lighting & Grip
https://www.robsrainhats.com/products/location-station-sanitizer-dispenser
Phone: 317-547-4747
Sprayers from Cinema Shot
Cinema Shot made a bulk order of electrostatic sprayers with the PERG rental community in mind. Kay Baker attests “They made things much faster and more efficient both cost and time wise.” Cinema Shot also has 2.5 gallon buckets with dispenser lids that can be used with big rolls of dry wipes that drop in the buckets. You pour whatever disinfectant you want and have 1,100 wipes ready to go. The camera rental company fills one bucket with alcohol for lenses and glass, and one with vital oxide disinfectant to take care of camera bodies, lens housings, and electronics where they can't spray.
J. Kay Baker
Cinema Shot
Phone: 303-997-4420
Its More than Just Gear
| PERG News: October 2020 |
Last January, PERG ran a Newsletter article in which we asked Holiday for his take on the state of the market. It is reprinted below.
Q&A with Tiger Group’s Jonathan Holiday
PERG: With the popularity of TV, movie and digital content continuing to grow, how is this affecting demand for AV gear?
HOLIDAY: The changes in the market are definitely driving demand. We are seeing specific areas where purchasing is being made to handle the acceleration in production. Buyers are being very specific in their needs. For example, lenses from Cooke, Zeiss and Ultra Prime, as well as digital cameras, continue to have demand in the marketplace.
PERG: How are international markets fitting into the content picture?
HOLIDAY: Demand for content continues to be global, but it’s interesting to see how the patterns are changing. In 2018, China was a prolific buyer. The trade war and tariffs last year have really slowed down their purchases of gear. More recently, we’ve been seeing demand from buyers in Israel, the United Kingdom, Australia, New Zealand and Latin America.
PERG: What is Tiger doing differently with all this rising demand?
HOLIDAY: In today’s environment buyers want to know that the gear they buy is ready to roll. We’ve started to provide supplemental information about the gear we put on the market, with much more asset-specific information than traditionally available. Whenever possible, we’ll tell buyers things like, “Here’s the testing or servicing that’s been done on this, here’s its history, and here’s what you can expect about performance based on what we and our clients know.” In some cases, we’ve hired third-party technicians and projectionists to evaluate gear. It bolsters interest in equipment by giving buyers more confidence in the used gear they are purchasing.
PERG: Can you explain why a rental company would engage a firm like Tiger rather than sell excess gear on their own?
HOLIDAY: Some companies assume that because they’ve struggled to sell gear via third-party websites or through other internal methods, a company like Tiger may have the same difficult experience. Tiger has a holistic process for marketing AV gear and equipment, and our sell-through rate is nearly 100 percent. We take the time to understand the gear, where it is being sold, the pricing and other market factors. Our team works diligently, and our focus is only on selling equipment, which is a key ingredient to meeting our clients’ objectives. At Tiger, we have spent years honing our skills in AV marketing, sales and customer service. We have extensive relationships with buyers in this space, and that does make a difference. Finally, we want our clients to be able to focus on what they do best and that is rent gear!
PERG: There were some noteworthy M&As in recent years, such as Keslow Camera acquiring Clairmont Camera and PRG’s merger with VER. Could you talk about how that affects the market for excess and underutilized AV gear?
HOLIDAY: Those were very important events, and we assisted both Keslow Camera and PRG/VER in eliminating inventory redundancies. We implemented key strategies to open up much-needed warehouse space and eliminate redundant and older gear, without impacting their ongoing business. Additionally, the revenue generated from surplus sales allowed the companies to purchase new gear to support their rental demands for next-generation productions.
PERG: What other significant transactions took place that required an innovative solution?
HOLIDAY: We had the good fortune of selling North Hollywood-based Cineworks a 40-year-old lighting and grip rental company at the eleventh-hour last year. This really highlighted the benefits of turnkey sales: The owner of Cineworks ended up with a recovery value that was nearly double what likely would have resulted from an auction sale. We were also very proud that the company was able to continue operating.
PERG: Who is buying gear these days?
HOLIDAY: Overall, we continue to see buyers from a gamut of stakeholders—production houses, rental companies, directors, cinematographers, AV dealers, and in-house marketing departments. Our focus on global marketing also drove demand from international buyers. In one recent unconventional case on the buyer’s side, cosmetics company Anastasia Beverly Hills wanted to disrupt the usual approach of outsourcing marketing and advertising production. Alex Smith, the company’s Director of Media Production, leveraged our sales to help build an in-house production company and advertising agency from scratch.
PERG: What gear is in highest demand right now?
HOLIDAY: We are seeing a strong demand for Arri Alexa Classics, 4:3 and XT and the Sony PMW-F55 digital cameras. Lenses are always a fast-selling mainstay. Cooke, Ultra Prime and Zeiss are particularly sought-after. We also recently sold more than 18,000 Tiffen filters—one of the largest inventories of filters to be sold on the open market.
PERG: What segments of the gear market is becoming obsolete?
HOLIDAY: Due to technology changes for traditional lighting, the shift to LED lights continues, and that’s part of why there are fewer lighting and grip rental companies. Affinity for the warmth of traditional lighting hasn’t disappeared, but these lighting rental companies are managing their inventories carefully, because demand is changing. With respect to cameras, we’re continuing to see the effects of “good-enough” manufacturing from China. Top-of-the-line cameras are not always being used for productions, and this is ramping up competition among manufacturers to churn out lower-priced cameras that still perform well. Rental and production companies really need to stay ahead of the obsolescence curve. Illumination Dynamics chose to do this in 2019 with their lighting, which paved the way for new gear to be purchased and to get the older lighting off their books. Scott Sawyer of Illumination Dynamics was quite happy with the results of our recent sale of the company’s excess event and conventional lighting. The company used the proceeds to purchase new equipment. Noting that our team was “very easy to work with,” Scott said the process “went very smoothly” and was profitable for his company.
PERG: Any misperceptions out there about selling excess AV gear through third-party asset-disposition firms?
HOLIDAY: Some rental companies view putting gear on the market as something you do when it’s time to shut down the company and then monetize every last piece of your gear. In fact, we routinely work with healthy rental and production companies to strengthen their competitiveness. In addition, we have the ability to look at a rental company’s inventory and assess what may be best to currently sell, and it may just be a partial amount of gear. We take pride at Tiger to create flexible programs to meet our clients’ needs.
PERG: Can you give an example of a success story involving one of our members?
HOLIDAY: Recently, I received a nice note from Bill Meurer, the founder and president of Birns & Sawyer, which has partnered with Tiger for more than 15 years. Bill pointed to the strategic importance of divesting underused motion-picture equipment and staying ahead of the obsolescence curve. In his note, he said that Tiger’s auctions and liquidations have helped his company continue to grow after 65 years in Hollywood. The proceeds are part of what enabled Birns & Sawyer to become an employee-owned business. For us, that was really gratifying to hear.
PERG: What’s the difference between auctions and liquidations?
HOLIDAY: We tend to use the term “sale solutions” because there’s actually quite a bit of variability in terms of the approach you can take. With respect to auctions, you’re talking about live, webcast or online events which take place on SoldTiger.com. Other solutions include, as I mentioned before, turnkey sales, as well as liquidations, sealed-bid offerings and private-treaty sales.
We strive to make the process simple for both sellers and buyers. Our goal is to always customize each project to meet our customers’ needs and timetables.
As to the distinction between auctions and the liquidation process, it’s important to understand an auction can take place as soon as 30 days and a liquidation may take 90-120 days. Liquidations take longer, but they yield higher values. A liquidation is a fixed price with possible tiered price reductions over time and leverages multi-channel marketing over time. It’s social media, ads in trade publications, e-mail blasts, telemarketing, and online banner ads. We keep and maintain a database with thousands of proven buyers.
To be sure, we do a lot of that same marketing for our auctions. However, liquidations are more controlled. You can exert more influence over prices and timetables. That’s important because it helps us avoid flooding the market with inventory.
PERG: Do you ever combine auctions and liquidations?
HOLIDAY: Absolutely. We can leverage a combination of our solutions. Tiger wants to work with each company to find the pathway to the highest value.
PERG: Can you give our members a recent example of this type of program?
HOLIDAY: For 10 months in 2019 we leased a 6,000-square-foot warehouse in Glendale for PRG/VER and Keslow Camera. We had gear moved into the warehouse from all over the country. As we pointed out, many ongoing rental companies typically don’t want buyers at their facilities and may need to open up space in a short period of time. The gear was moved and then much of it tested. It was all priced, catalogued and photographed, plus buyers were able to check the gear themselves, giving them additional confidence in purchasing the equipment. Over 21,000 pieces of gear were sold in those 10 months via the liquidation process and five auctions. With the warehouse and integrated sales process, both Keslow and PRG/VER really benefitted from our efforts.
PERG: What do you think about the macroeconomic situation moving forward?
HOLIDAY: I’m an optimist and am really happy to see the strong growth in content-creation continuing, and this is great for rental companies. However, I also think it’s important to remember that the business cycle, sooner or later, will turn. When that happens, marketing and advertising budgets will shrink in proportion, with cascading effects on demand for AV gear. There is a lot of gear out in the secondary market and eventually there will be downward pressure on values.
PERG: That is why it is important to have multiple solutions to deal with gear?
HOLIDAY: Correct. Having an asset disposition firm as a partner can alleviate significant challenges in the present and future. We are here to listen, evaluate and take action. Most importantly, we really value creating long-term, fruitful relationships with our clients.
On the Road to Recovery
| PERG News: October 2020 |
Rental companies report that, on the whole, crews and staff have been cooperative with observing the protocols, wearing PPE, and observing social distancing. In the major markets, people see these measures as a necessity if they want to work. It is worth noting, however that there are markets where our members contend with producers who resistant (or seem oblivious to) the protections recommended by PERG, the AICP, the MPPA, and IATSE, not to mention the CDC. For most, the basic rules of life with COVID are old hat. Several rental company principles I spoke to urged personal responsibility for everyone working in the industry. This is not the time to be going to bars and big gatherings. One DP, who was among the first to take his crew on location on a feature film, was recently asked how he deals with uncertainties of personal behavior off the clock. He said “I hire really boring people. That’s the key. Hire people who wouldn’t be going out anyway.”
Across the board, rental companies say one of the most important measures that they have implemented is insisting on scheduled appointments for anyone visiting their facility, requiring sign-in, and limiting the number of people that could cross paths. This requirement not only helps them manage and track people in the facility, it also forewarns visitors that they are expected to follow safety arrangements. A signed health declaration for anyone entering the building also drives the message home. The AICP checklist is now widely used. Rental companies have worked to provide a controlled environment, separating people with distance or with plexiglass where necessary.
Many PERG members reported that, especially early on, producers asked them about their protocols. Many used the PERG Safe Return to Work guidelines as the basis for their protocols, or just sent the PERG document to the producer and said, “This is what we follow.” The process of creating the document provided dialogue with unions and other groups, which was valuable on getting everyone on the same page.
Rental companies are using a variety of methods to ensure that infection is not transmitted on their equipment. For equipment that is not in immediate demand when it is returned, placing the equipment in quarantine for a number of days has proved the easiest solution. When equipment needs to be checked out sooner, cleaning protocols are typically used, which is labor intensive. Many members report very little pushback when billing COVID related fees to clients. If the production has a separate line-item in the budget for COVID-related expenses, these fees can be paid from that part of the budget without affecting the camera or lighting line items.
The scale of production is still limited in many states by the restrictions on maximum occupancy. The challenge for everyone—crew and rental staff alike—is often is to figure out how to get the work done with fewer people. You have to remind people not to rush into doing things as we would normally do them. It is unnatural and it takes longer.
Another challenge for production companies and rental companies has been preparing for the possibility that someone will not pass their screening, will get sick, or will have a positive test. A positive test, even if it is not a cast member, can cause a shutdown. There have been false positives and there have been real cases that required quarantining employees. Over the summer many rental companies experienced unusual volatility with orders, often ending in cancellations. With minimal staffing, companies find they need their staff to wear more hats. (And, unfortunately, in some cases valued specialists have been the last to come back to work.) If someone gets sick the company has to have someone else who can fill the role. Rental companies report that, when this has come up, employees have been upfront. Some rental companies have implemented separate shifts to keep “pods” or teams separate. This idea has also been successful on the set. By limiting the number of lines of transmission that a sick person may cause, a production can manage a possible infection or positive test and can avoid a complete shutdown. Some shoots are using additional units, shooting with two or more smaller crews to get through the scheduled work.
Another challenge that rental companies face now are supply chain issues. Some of the domestic grip/lighting manufacturers still have their manufacturing shut down and are on minimal staffing. Chroma-key paints, filters, and other manufactured products and expendables are no longer in stock. Manufacturers may require deposits or prepayments in order to generate revenue to bring their services back online. ARRI is backordered on cameras. There are reports of delays for lens servicing.
Rental companies also report delays and less-reliable service from shipping companies. Rental companies need to plan additional lead time, when they can, to ensure equipment is received on time.
Now, halfway through October, many rental companies are mainly concerned that all the shows are starting up at the same time. While everyone wants the business, it may be a huge logistical challenge requiring new strategies, perhaps multiple shifts and very late nights. For most, at this point, it is a welcome challenge. In Los Angles, production is coming back to full speed despite ongoing community spread. People have just adopted masks, social distancing, hand washing, and other restrictions, as the necessary new normal. There is simply too much at stake to do otherwise. In Los Angeles, Contract Services—the training arm of the seven major studios—will soon launch mandatory COVID-19 online training for IATSE crew members and well as the DGA and teamsters.
PERG recognizes the extraordinary efforts of the PERG Safe Return Task Group and of the AICP and Industry-Wide Labor-Management Safety Committee for the Motion Picture and Television Industry who developed safety guidelines. The AICP guidelines are largely responsible for the early return of commercial production, which was recovering well by September. The PERG Safe Return Task Group includes representatives from Abel Cine, ARRI Inc., ARRI Rental, Camtec, Cinelease, Cinequipt, Keslow Camera, Illumination Dynamics, High Output, Insight Equipment, LiteGear, MBS, MP&E Cameras and Lighting, MPS Studios, PC&E, Panavision, Quixote Studios, Taylor & Taylor, TCS, and William F. White International. Many equipment manufacturers also contributed information about cleaning and disinfecting their products.
Behind the Scenes Launches Suicide Prevention Campaign
| PERG News: October 2020 |
The Behind the Scenes Mental Health Initiative has rolled out a number of suicide prevention tools as part of joining the #BeThe1To campaign run by the National Suicide Prevention Lifeline and its partners. These tools are available at btshelp.org/bethe1to.
Our survey of the industry revealed that most people want to help if they see someone at risk for suicide but they don’t know what to say or do, or are afraid they will make things worse or damage their relationship with the person. Evidence shows this is not the case and it is critical to reach out.
The first part of the campaign is called “Know the Warnings Signs” because the more familiar someone is with the warning signs of suicide the more likely they are to recognize them. We have created posters listing some of the key warning signs in English, Spanish and French and they are available for download in 3 different sizes. The posters are a very simple design so they can be easily printed out and posted on call boards, notice boards, break rooms, and anywhere other company or safety information is shown.
The second part of the campaign is the #BeThe1To poster which lists the five steps that can be critical to saving a life. The more familiar everyone is with them, the more comfortable they will be taking those steps. These posters are available in the same sizes and languages with the addition of a JPG for sharing on social media. They also include a QR code which leads to additional information. Each of the five steps is very straightforward but acting on them can sometimes be daunting. This additional information provides guidance and practical examples for each of the steps and is available as a PDF or PowerPoint presentation.
During these difficult times for our industry, when so many are dealing with anxiety or depression and struggling to maintain their mental and emotional health, it’s important that everyone takes the time to become familiar with this information. Learn how to recognize the signs of distress and what you can do to help save a life.
Behind the Scenes has come together with other concerned organizations and individuals to create the Mental Health and Suicide Prevention Initiative. A series of tools and resources has been developed to not only help you but also assist you in helping your colleagues. Find links to more tools and resources and information about the initiative at btshelp.org/mentalhealth.
The BTS Boutique Offers Unique Holiday Decorations
| PERG News: October 2020 |
Add some unique holiday decorations to your home this year and support your colleagues who are seriously ill or injured as well as Behind the Scenes’ new Mental Health and Suicide Prevention initiative. These ornaments have been generously made and donated to Behind the Scenes by Mike and Sue Wood, so every penny goes directly to helping your colleagues in need.
Have cutouts of your favorite tools hanging on your tree this Christmas by choosing from a crescent wrench, shackle, paintbrush or scissors as well as holiday designs. Available in 3” round acrylic disks in red (in keeping with the WeMakeEvents theme) or clear. There’s a BTS ghostlight etched on clear acrylic. And we’re introducing the Ghostlight Tree, a garlanded Christmas tree with a ghostlight star that’s available in three styles: etched on clear acrylic, as an LED night light in multi color or solid blue, and as a portable mini LED with remote control that will brighten any room or window with the holiday spirit.
For those celebrating Hanukkah we’re offering the portable mini LED with an etched menorah topped with a ghostlight shamas candle and a Star of David night light in multi color or solid blue.
The holidays are just around the corner so don’t delay and add some holiday cheer to your home today! And while you’re there, check out the BTS Holiday Cards, created by industry designers specially for the charity, available in card packs of 10 and as e-cards.
For more information about Behind the Scenes, to donate, or to apply for a grant, visit www.behindthescenescharity.org.
Subscribe to:
Posts (Atom)