Hollywood has been dealing with the problem of runaway production for years. A growing number of film and television productions are being lured away from Los Angeles by tax credits.
One group of show business employees is speaking out about it. The American Federation of Musicians recently held a protest outside the Los Angeles offices of Lionsgate, the studio responsible for, among other blockbusters, "The Hunger Games". The musicians work in film scoring. They’re upset with Lionsgate for accepting millions in tax credits to film in the U.S., but then score those films overseas.
Marc Sazer is a violinist and a member of the American Federation of Musicians. He’s worked for decades in film and television. “The major studios have longstanding relationships with the American Federation of Musicians,” said Sazer. “Fox, Universal, Columbia, Paramount and Disney, when they produce domestically, they score their films with us.”
Lionsgate is not considered a major studio. Technically, it’s a mini-major studio. But Sazer and the other members of the musicians' union argue that Lionsgate is at the same level as the major studios. Last year it generated $2.7 billion in revenue, millions of which came in the form of tax credits.
“We’re trying to bring attention to the fact that companies are taking our tax dollars and then taking our jobs overseas, which depletes our social compact," Sazer said. "It also depletes our cultural equity, because it undermines the livelihoods and the sustainability of our musical culture.” Lionsgate did not respond to a request for an interview.
In an outdoor amphitheater in the shadow of the San Gabriel Mountains, the Pasadena Symphony is tuning up for a rehearsal. Hundreds of empty chairs face the stage. Peacocks outnumber audience members.
“We have about half of the orchestra on stage, some early birds, some will whisk in at the last minute,” said trombonist Andy Malloy. He’s worked in film and television since he got his first gig on "Laverne and Shirley".
Film and TV gigs used to make up 75 to 80 percent of Malloy’s income. “My guess, if there are 60 musicians here, easily 40 to 50 people do recording work as well," he said.
According to the union, total earnings of its members have fallen by half since 2007. During a recent protest, Malloy and his colleagues delivered a petition to Lionsgate headquarters. At the time, they singled out one film in particular, "Draft Day" starring Kevin Costner.
The score to "Draft Day" was recorded at a studio in Macedonia called F.A.M.E.’S. Laurent Koppitz, the founder of F.A.M.E.’S, is a musician himself, originally from France. He was working at a classical music record label in Paris when he visited Macedonia for the first time. “I discovered a country that was really interested in attracting investors and doing business,” said Koppitz.
Koppitz was able to get a loan, fix up a recording studio and audition more than 100 classical musicians. That was six years ago. Nearly all the jobs he gets are low-budget productions, accompaniment on pop albums, Bollywood films and video game music.
“Ninety-nine percent of what we do is independent projects,” Koppitz said. Some of them turn famous.
Koppitz was surprised when he came across news reports that F.A.M.E.’S was taking jobs from American musicians. He says he can’t compete with the quality of studios in Los Angeles. And that was not his intention. Kopitz started F.A.M.E.’S to make live orchestras affordable to those with small budgets, who might otherwise use pre-recorded or electronic music.
So when a low-budget production hires his musicians, that, he says, is an example of the good aspect of globalization: more musicians get work and more productions have live music.
But if large studios hire him simply because he’s cheaper, then he says they are coming to Macedonia for the wrong reason. “When you go for the wrong reason, like 'Oh, it’s cheap,' it’s not very nice for anybody because it takes the job here which is a problem,” he said
That problem Koppitz said, is the bad aspect of globalization.