It was a few short months ago when it looked like the film and TV business in Nova Scotia was going to roll up and die but hold on naysayers, business is booming! Hi, just catching up after the Atlantic Film Festival which I did not attend (ed. But some sweetheart memories roll through your head, I bet.)
For sure! That's my editor Lunchmeat Harold. (ed. Howdy)
So in April the two wonderkins of fiscal responsibility Stephen MacNeil (ed. Premier) and Diana Whalen (ed. Finance Minister) thought they could do a quick and easy fix of the budget by cutting the Nova Scotia Film and Television Tax Credit. Zing, press the delete button and save the taxpayers $24 Million dollars.
All the Liberal MLA's applauded at their wisdom. However, they weren't expecting the backlash and organizational skills of the "elite" filmmakers. Which they could have weathered, because it was for the greater good of the province.
But what they neglected to take into account was the wrath of the biggest company. From his 3rd home in the "elite" section of London, England Michael Donovan (ed. DHX) made it know he wasn't happy. His various companies over the years had grown over the years because of the helping hand of the tax credit. And his company was about to get listed on the New York stock exchange. Tinky-Winky even rang the stock exchange bell! DHX was going to go from being a company worth a few hundred million dollars to one that was worth over ONE BILLION DOLLARS! But how could he go out and raise that kind of cash if the tax payers of Nova Scotia weren't going to chip in with their no-conditions, not-entitled-to-any-sort-of-return-on-investment, investment. (ed. After all that is the Nova Scotia way!)
But they couldn't give to one company and not allow other companies the tax credit. That wouldn't be fair. Until someone in the group of Department of Finance/Government brainstormers (ed. - could be an employee, could be someone on a contract, will we ever know?) came up with a solution.
DHX produces mostly animated TV shows. These are different from "live action" TV and movies that everyone else made. They decided DHX could qualify for a special *wink* *wink* "digital" tax credit which was already in place. It was supposed to be for "interactive" new media projects but with a little trimming the square peg was made to fit in the round hole. And it was exactly the same as the old tax credit. And making a TV show with animated people is a much better industry than making a TV show with real people. Somehow. (ed. Don't ask. Oh look, no one did.)
Meanwhile live action TV and movie people were making such a fuss the government looked to shut them up with some lipstick on a pig. They came up with a new "tax incentive" which was different, yet , the same but not quite as good as the old tax credit. Plus it would be limited, somehow (ed. "the cap") but, not really, to $10M a year. And you had to apply for it in advance and wait to see if you qualified for it and...well that was enough for "guest" productions to give the province a pass. (ed. maybe next year get your ducks in a row!) And most other home-grown productions weren't going to happen as planned as the provincial funding agency had also been swept away so no equity. (ed. Wouldn't it be great to have a chunk of equity in DHX projects and not just, nothing).
So while most of the film and TV business will die like a deformed pumpkin on a vine by the winter, Tinky-Winky is clanging away at his bell in a frenzy of $$$$$$$. And that's good for business. Allnovascotia reported today that profit if up 150% at DHX. So, BAM!
(ed. Note: The author owns 1000 shares of DHX stock.)
It was left to me by my father and in no way influences what I write here.
A few other notes:
(1) One of the only (ed. I think only) live action shows that DHX produces was out doing their "principal photography", (ed. You are going to run out of exclamation marks soon.) before July 1st so they would still qualify for the old, more beloved tax credit. But apparently some in the Department of Finance are not amused by this little walk around the rules, principal photography is supposed to be the first day of regular production. Sorry DoF guys and gals, it's just another phone call so let it go.
(2) Some info is trickling in about Egg Films and apparently if they do shut down, people will be more forthcoming about their experiences working for the company. Apparently it wasn't all unicorn kisses.
Monday 28 September 2015
Friday 11 September 2015
Sometimes You Gotta Break a Few Eggs
Anyone have any scoop on what's really happening at Egg Films. Did they just give up, give in give out or what? Seems odd to spend all that money on legal fees, fire 20 people and close down a successful business rather than pay into CPP, WC etc.
Tuesday 28 July 2015
Don't Panic: TV Business As Usual
Just dropping in with my editor Lunchmeat Harold (ed. Howdy!) to address a little panic I had last week. DHX had planned a listing on an AMERICAN stock exchange. Do you know how amazing that is? Not the Toronto Stock Exchange or the Sunshine Valley Stock Exchange but a real stock exchange with American money and everything. It was such an event that a DHX executive was given the honour of ringing the opening bell! That honour is only given out once a business day. And just for fun he did it with one of the Smurfs!
(ed. FYI, the author of this blog owns 1000 shares of DHX.)
Now I said "was excited" because at the last minute, the company got cold feet. What with world markets being a little depressed (ed. I hear you), the company decided to postpone the listing. It will happen when things are just right. After all Michael "Three Houses" Donovan, knows business. He's like the Donald Trump of Canadian TV. After all, remember that little fuss with the Liberals kneecapping the industry a few months back? Guess who came out of it smelling like a rose. Calling from his London home, Mr. D (ed. The original Mr. D), only had to threaten to take his (ed. our) business elsewhere and Premier MacNeil buckled. But just for DHX. They have their own separate fund of taxpayer dollars to draw on, called the Digital Media Tax Credit. (ed. Everyone else, yeah, sorry.)
As Premier MacNeil and Diana Whalen so wisely pointed out, any company that relies on government subsidies is no long affordable for this province. Except for DHX.
You see animated TV is different than live action TV because well, one is real people acting, lighting, catering etc and the other is teenagers imported from Ontario drawing things on there computers.
Simple common sense.
And I know, people who were expecting to work in live-action TV and film this year received a roundhouse kick to the balls out of the blue but really things will be okay. Many of you are in the process of uprooting your family and moving to anyplace else in Canada to find work, but don't worry about those who are left behind.
Once DHX does there thing on the AMERICAN stock market (ed. exciting!), the companies value will be close to $1 Billion dollars! And that's good for Nova Scotia and probably the other parts of Canada where they pay taxes.
And for me, as a shareholder, to you who worked and paid taxes here, I thank you.
(ed. FYI, the author of this blog owns 1000 shares of DHX.)
Now I said "was excited" because at the last minute, the company got cold feet. What with world markets being a little depressed (ed. I hear you), the company decided to postpone the listing. It will happen when things are just right. After all Michael "Three Houses" Donovan, knows business. He's like the Donald Trump of Canadian TV. After all, remember that little fuss with the Liberals kneecapping the industry a few months back? Guess who came out of it smelling like a rose. Calling from his London home, Mr. D (ed. The original Mr. D), only had to threaten to take his (ed. our) business elsewhere and Premier MacNeil buckled. But just for DHX. They have their own separate fund of taxpayer dollars to draw on, called the Digital Media Tax Credit. (ed. Everyone else, yeah, sorry.)
As Premier MacNeil and Diana Whalen so wisely pointed out, any company that relies on government subsidies is no long affordable for this province. Except for DHX.
You see animated TV is different than live action TV because well, one is real people acting, lighting, catering etc and the other is teenagers imported from Ontario drawing things on there computers.
Simple common sense.
And I know, people who were expecting to work in live-action TV and film this year received a roundhouse kick to the balls out of the blue but really things will be okay. Many of you are in the process of uprooting your family and moving to anyplace else in Canada to find work, but don't worry about those who are left behind.
Once DHX does there thing on the AMERICAN stock market (ed. exciting!), the companies value will be close to $1 Billion dollars! And that's good for Nova Scotia and probably the other parts of Canada where they pay taxes.
And for me, as a shareholder, to you who worked and paid taxes here, I thank you.
Wednesday 13 May 2015
Happy Days for NS Film Industry!
Well, that was a tense few weeks but everything turned out all the better. Here with my editor Lunchmeat Harold (ed. Howdy!)
I was really worried when Diana Whalen announced she was ditching the Film and TV tax credit. I though my 1000 shares of DHX would end up being worthless (ed. or just slightly less.) But when Michael Donovan told the industry people not to get too excited or upset, he was right. Turns out the tax credit is now richer than ever and it's unlimited, no cap!
Of course I'm talking about animation only. But I wish all the live action people good luck with your things.
It's truly a sign that it's politics as usual in the province and that's good for everyone. (ed. Well, not everyone.)
I was really worried when Diana Whalen announced she was ditching the Film and TV tax credit. I though my 1000 shares of DHX would end up being worthless (ed. or just slightly less.) But when Michael Donovan told the industry people not to get too excited or upset, he was right. Turns out the tax credit is now richer than ever and it's unlimited, no cap!
Of course I'm talking about animation only. But I wish all the live action people good luck with your things.
It's truly a sign that it's politics as usual in the province and that's good for everyone. (ed. Well, not everyone.)
Wednesday 6 May 2015
WTF Halifax?
WTF Nova Scotia?
Hi people, it's been awhile, almost a year since I last blogged. But really, what blog doesn't start out this way. As always, I am edited by my old friend Lunchmeat Harold. (ed. Howdy)
Okay, so the last time I made a posting, it was spring in Nova Scotia and there was trouble on the tax credit front, film and TV wise. (ed. that seems like such a long time ago.)
That was 2014. The government wanted to do away with the tax credit but after some producers made some noise that spot of bother went away. (ed. As it was, as it always shall be.)
But then after some R & R (ed. voluntarily signed in, I can vouch for that) I find out that not only did the government threaten to take the tax credit away, it WROTE DOWN in the big book of laws that they were going to do it.
But thankfully, once again, saner minds have prevailed and not only is the tax credit back but it's better than ever! (ed. Note: the author owns 1000 shares of DHX stock.)
If you're in the business you know how this spring has played out. For those of you not in the business, I'll outline what happened.
(1) Liberals said they will cut the NS film and TV tax credit to save money because they need their pensions after 2 years work and not six. (ed. We don't live on a gulag!)
(2) The industry gathers it's forces and organizes.
(3) The government begins a KGB style campaign of misinformation to say those people don't pay taxes and they're the reason why little Billy can't have his insulin.
(4) Michael Donovan talks on CBC radio from his 3rd (ed. In acquisition time, not in his heart) home in London, England to say the government will ruin the industry (ed. i.e. him) if they do this. He will fire hundreds of tiny animators presently attached to computers in his office in Halifax. They will roam the countryside, drawing on everything!
(5) Public feels little sympathy for multi-millionaire being subsidized by their tax dollars.
(6) Everyone else in the film and TV business (ed. i.e. not Michael Donovan) organizes petitions, rallies, a letter writing campaign. And they seek the hearts and minds of the general public by explaining to them that they're regular people who work hard in the business and pay taxes.
(7) The government throws them a bone and says the tax credit is now 25% of budget and not 50% of labour. (ed. It's the same thing but it sounds better.) Also, animation will now be covered by the digital tax credit. (ed. Wait. Animation is "interactive"? Inspector Gadget doesn't respond to your questions.)
(8) Everybody calms down.
(9) The government says they have a deal with those obnoxious producers/workers and it's all settled. With a $10M cap on the total tax credit because that's all they can afford. And NSBI, a liberal slush fund will be in charge of it.
(9) Everybody wakes up and goes WTF? That won't keep the industry going and how do we know who gets it? There's more letters to the editors, radio interviews, speeches to the bored politicians. Michael Donovan releases some minions.
(10) Public grows bored. DHX (ed. and other animators.) meet with the government.
(12) Liberals grow bored.
(13) Budget outlining the changes to the tax credit is tabled, read, debated etc.
(14) Andrew Younger mumbles. Caged salmon cry.
(15) The Liberals announce that they have changed the Digital Media Tax Credit to include animation. (ed. But that tax credit is to encourage gaming companies to come here. Animation isn't "interactive". Why just last year there was a big issue because a company wasn't interactive enough. Shouldn't this be discussed - ?)
(16) Shhhhh.
(17) The new and improved Digital Media Tax Credit is now, not only like the old film tax credit, it's BOOOM better by another 25%! And no cap! (ed. Draw yourselves a great big cheque!)
(18) So now if you make TV or films (animated not the real kind), you get the bestest ever tax credit/subsidy for an industry that is mostly labour. And guess who does most of the animation production in town? It's not Little Insulin Billy. Lol. (ed. Note: the author owns 1000 shares of DHX.)
(19) School's out. And all you old fashioned filmmakers out there, let there be a lesson here. Backroom dealings are the way to go in this province.
Hi people, it's been awhile, almost a year since I last blogged. But really, what blog doesn't start out this way. As always, I am edited by my old friend Lunchmeat Harold. (ed. Howdy)
Okay, so the last time I made a posting, it was spring in Nova Scotia and there was trouble on the tax credit front, film and TV wise. (ed. that seems like such a long time ago.)
That was 2014. The government wanted to do away with the tax credit but after some producers made some noise that spot of bother went away. (ed. As it was, as it always shall be.)
But then after some R & R (ed. voluntarily signed in, I can vouch for that) I find out that not only did the government threaten to take the tax credit away, it WROTE DOWN in the big book of laws that they were going to do it.
But thankfully, once again, saner minds have prevailed and not only is the tax credit back but it's better than ever! (ed. Note: the author owns 1000 shares of DHX stock.)
If you're in the business you know how this spring has played out. For those of you not in the business, I'll outline what happened.
(1) Liberals said they will cut the NS film and TV tax credit to save money because they need their pensions after 2 years work and not six. (ed. We don't live on a gulag!)
(2) The industry gathers it's forces and organizes.
(3) The government begins a KGB style campaign of misinformation to say those people don't pay taxes and they're the reason why little Billy can't have his insulin.
(4) Michael Donovan talks on CBC radio from his 3rd (ed. In acquisition time, not in his heart) home in London, England to say the government will ruin the industry (ed. i.e. him) if they do this. He will fire hundreds of tiny animators presently attached to computers in his office in Halifax. They will roam the countryside, drawing on everything!
(5) Public feels little sympathy for multi-millionaire being subsidized by their tax dollars.
(6) Everyone else in the film and TV business (ed. i.e. not Michael Donovan) organizes petitions, rallies, a letter writing campaign. And they seek the hearts and minds of the general public by explaining to them that they're regular people who work hard in the business and pay taxes.
(7) The government throws them a bone and says the tax credit is now 25% of budget and not 50% of labour. (ed. It's the same thing but it sounds better.) Also, animation will now be covered by the digital tax credit. (ed. Wait. Animation is "interactive"? Inspector Gadget doesn't respond to your questions.)
(8) Everybody calms down.
(9) The government says they have a deal with those obnoxious producers/workers and it's all settled. With a $10M cap on the total tax credit because that's all they can afford. And NSBI, a liberal slush fund will be in charge of it.
(9) Everybody wakes up and goes WTF? That won't keep the industry going and how do we know who gets it? There's more letters to the editors, radio interviews, speeches to the bored politicians. Michael Donovan releases some minions.
(10) Public grows bored. DHX (ed. and other animators.) meet with the government.
(12) Liberals grow bored.
(13) Budget outlining the changes to the tax credit is tabled, read, debated etc.
(14) Andrew Younger mumbles. Caged salmon cry.
(15) The Liberals announce that they have changed the Digital Media Tax Credit to include animation. (ed. But that tax credit is to encourage gaming companies to come here. Animation isn't "interactive". Why just last year there was a big issue because a company wasn't interactive enough. Shouldn't this be discussed - ?)
(16) Shhhhh.
(17) The new and improved Digital Media Tax Credit is now, not only like the old film tax credit, it's BOOOM better by another 25%! And no cap! (ed. Draw yourselves a great big cheque!)
(18) So now if you make TV or films (animated not the real kind), you get the bestest ever tax credit/subsidy for an industry that is mostly labour. And guess who does most of the animation production in town? It's not Little Insulin Billy. Lol. (ed. Note: the author owns 1000 shares of DHX.)
(19) School's out. And all you old fashioned filmmakers out there, let there be a lesson here. Backroom dealings are the way to go in this province.
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