Film industry democratization

Arnel Mardoquio

1st of three parts

THREE years ago, I wrote this paper and gave the first draft to two of my Metro Manila-based director-friends. Though still unpolished, they brought the paper to the office of one senator.  As expected, a topic that dealt with the disassembling of a huge monopoly system in any industry was controversial and therefore, not appreciated. The lawyer-members of the senator’s staff never saw anything wrong with the film industry in the Philippines. They talked more about tax incentives, plus other “Band-Aid” measures. They reasoned that, that was the only path, as there was really no great problem.

With new developments in the industry, I revised the paper, hoping to inspire new independent filmmakers who were starting to organize themselves into groups with the same sentiment. To them, the time has come to really face the ills facing the industry. My thoughts are with them as I believe that we cannot expect anything from a government agency that, tasked with seeing through the film industry’s development, is more into glamour poses in order to cover up its incapability. Instead of helping with the evolution of a local film industry, it has even assisted in its demise.

I do not need to be a scholar armed with academic expertise to see and analyze the happenings in the industry, and this is not even a scholarly thesis. As a legitimate industry worker, I attest that all these problems exist.

In my 10 years of making films, I have seen from my fellow independent filmmakers how the existing monopolistic system has manipulated the business of selling films in the country and further diminished the rise of a true Philippine film industry.

I first wrote this in Visayan, then in Tagalog for my fellow workers to read, and eventually had it translated in English through Erico San Pedro who was an editor in one of the cultural publications during our active time in cultural work in Mindanao. Currently, we are co-authors in a paper on the study of the economic potentials in Filipino independent films once they have reached the formal market, i.e., the economic power and potential of independent films as products and services that aid our economy as a whole.

We submit this paper to Congress through Bayan Muna Partylist in the hope that it be put into law, with the wish that as such the establishment of a Filipino film industry would be initiated in our lifetime.

By all definitions, the independent cinema is a qualified example of what an industry is.  For one, it is involved in a dynamic economic activity composed of local talent, and a workforce that manufactures a popular and marketable local product. Its contribution may appear trivial compared to its dominant counterpart, but on the whole, it greatly helps the local economy.  Surely there are records kept by producers which show in detail the expenditures of every production. Their list will show the countless payments for talent fees, van rentals, purchases of kilometers of cloth, fish and meat for crew and cast meals, all from the local markets in small towns. The list will likewise include “ukay-ukay” forays, and salaries for small town electricians, carpenters, masons and architects; all vital components for a hometown local production. Small hotels and inns in the regions and provinces have also benefited from the independent cinema’s on-site presence. Production and shooting schedules in the provinces veer away from the locale’s calendared festivals. As such, the locality benefits greatly for the off-season presence of their outfits. You could say that in these instances, the independent cinema is the clientele during the dry season of local tourism. On a yearly basis, this is a regular cycle of economic activity.

The Independent Cinema movement in the Philippines produces about a hundred films in a year. The quality of their films has garnered countless praises and awards from all over the world, and along with this, evolved an expertise that has led to the blooming of an underground economy. In turn, this underground economy directly contributes to a definite economic activity. The independent cinema is considered an underground economy in the Philippines as it does not directly pay the amusement taxes for most of the films that are produced. The reason for this is that formal venues, such as movie theaters are not available to them. Despite this, the independent cinema has proven time and again that during recent film festivals in Manila, its hit-andun series of films, with their limited screening time and limited number of theatre houses given to them by theatre owners and associations have earned hundreds of millions in gate sales. There have been several independent films productions that have attempted to enter the market and have succeeded. This concrete experience only proves that the independent cinema is a force to reckon with economically.

The indirect way by which independent cinema is taxed, is on the logistics aspect of its operations. Its technical department is constantly updating its wares, from expensive cinematic lenses and cameras, rolls upon rolls of cable, special microphones, sound recording gadgets, and so on. They are active purchasers of the latest computer software, laptops, desktops, and other equipment which when added as a whole, run up a huge expense. To top it all, these equipment need to be updated from time to time. As such, their expenses as consumers are the ways by which they are pay tax.

It has thrived despite more than a decade of inattention by past government administrations. As such, the Independent Cinema’s challenge for the present administration is the establishment of a genuine film industry in our country.

In spite all these, the independent cinema will remain an underground economy unless the present government does something. Surely, with such vibrant economic force that is active in both the cities and the regions, isn’t it time we have a national film industry?

In contrast to the dynamic character of the independent cinema, the owners and proprietors of theater houses have designed a system that runs contrary to the concept and essence of what an industry is. The importation of foreign films and the unloading of ninety percent finished products in the local film market are not the markings of an industry. These are simply the actions that are indicative of a business chain, and it is killing the local film industry. More important, it brings to the surface the discriminatory nature of this so-called industry. Hollywood blockbuster films treated as first class, is given priority in this market. Second class position is given to local studio-based film productions that churn out Tagalog films. The independent cinema is not in their league. According to them, the art of the “indies” is not for the market because it only messes up with their already-functional system of things.

The state of the Philippine film business can simply be described as one that runs on greed for sales and profit. Our present market is an exclusive playground for theater owners. They have a tight relation with the people who bring finished products or films from Hollywood.  As a result, this aggrupation has instinctively monopolized the market. Their exclusive association has only firmed up their manipulation and corruption. These are the monopolists; they are the oligarchs in the film business of the Philippines.

The Philippines has long adhered to the changes in the configuration of global distribution of commodities. This business design, where retail and entertainment are included, has given birth to the one-stop shop concept. This new face of business has led to new concentration of capital, and the film industry is not exempted from this.  Rich monopolist businessmen, who have shares in mining, airlines, banking and finance, communications, mass media, electricity, real estate, and the retail business, have ventured into the establishment of shopping malls as well. This one-stop shop cum entertainment venue is the funnel by which all are sucked into.

In this situation, he who owns the bigger center of business holds the most control. A piece of film is a simple product like any other, so much like the toothpaste displayed in a gondola at any supermarket. If you have a product to sell, and you want to compete with others, a space in the mall is the ideal spot. The transaction is much like real estate; the value of rent is measured according to the per square inch space you wish to occupy.  Rent is charged from the opening up to closing time. The establishment takes charge of your product’s sale, with you only providing promotional collaterals and other materials that will ensure the speedy “sale” of your product.  It is likewise their decision how long you can stay at the expensive space you are renting.  Their operation is both extensive and fareaching. The mall owners, most of whom are also owners of other large industries in the country, backed up the theatre operators to strengthen the monopoly in the industry.

This monopolistic practice in the film business not only kills the Philippine film industry as a whole, it strikes deep into the heart and soul of a country represented by our quality films made by Filipino filmmakers. (to be continued)

(Arnel M. Mardoquio is an award-winning film director and screenwriter. He was born and raised in Davao City. He is is now based in Melbourne, Australia. English translation by Erico San Pedro. – Mindanews)