As shows get older, above-the-line costs
Now it's sort of slowly dripping all those gains away, with everything coming back down to 1999 and 1998 levels." He added that this is not good for any business, particularly networks which are spending more in above-the-line costs
, such as making expensive commitments to multiple episodes or high-priced development deals.
This applies to both local and foreign film and TV productions spending a minimum of $500,000 on qualified production expenditure such as equipment, services and labor as well as the above-the-line costs
. These are also exempted from Value Added Tax and custom duties.
The above-the-line costs
are increasingly difficult to manage.
rebate is much better for above-the-line costs
. Studios want to keep the shoots there."
In most productions, the below-the-line cost is not the problem; it's the above-the-line costs
that are way out of whack and there's going to have to be an adjustment in what people are getting paid.
That means a strong downward pressure on above-the-line costs
and the sort of inventive talent deals that allowed Affinity Intl.
According to Stacey Valenza, senior vp of Hearst Entertainment Distribution, the down side of making a MOW into a home video release "is that shooting those extra scenes costs a lot of money because it can significantly up the above-the-line costs
as actors insist on being paid more." One solution is to start with a more graphic home video version and later edit for television.
He specifically criticizes programs that include producer's above-the-line costs
, effectively subsidizing what are already multimillion-dollar wages for name actors.
"Budgets are shrinking in all areas--visual effects, postproduction, above-the-line costs
, production days," Gordon says.
have been out of control, and it was hurting the business."
CEOs have long lamented the big hike in above-the-line costs
that began in the 1980s and accelerated in the go-go '90s.