Film, as an art form and as a product, engages its stakeholders through its dualistic nature; it has both cultural and economic value and effects. It is not a homogeneous monolith but a large multi-faceted entity. Although it deals with mainstream cinema, it also has a thriving independent film scene with a robust new breed of young filmmakers. While it’s story development, artistic endeavors and content, it’s also a business venture.

Normally, viewers will prioritize the most basic expenses such as food, utilities, and transportation. Entertainment spending can sometimes depend on what’s left of the budget after the essentials have been taken care of.

However, despite the challenges of the pandemic, entertainment has remained a priority for many, a quick respite from the stresses of trying times. While the film industry is still recovering from the closure of entertainment centers, the demand for good films remains.

The last two years have seen the boom in streaming platforms and have become part of the common vocabulary. Netflix reports a 60% increase in shares and $235 billion in new subscriptions. New streaming platforms offered competition to meet growing demand.

New situations give rise to the emergence of new trends. Even before the pandemic, the Philippine film industry was constantly evolving. Changes happen all the time and this year is no different. Let’s look at some possible trends and emerging issues this year.

The (hidden) cost of production during the pandemic

Continuing production amid the pandemic is a double-edged sword for the film industry. On the one hand, it gives back the livelihood of cinema workers that was suddenly taken away from them. On the other hand, security protocols, while beneficial to all, also have financial repercussions. Keeping everyone safe has a cost.

The Berlinale and the European film market before the pandemic.

For cinemas, the maximum capacity rules and social distancing have reduced possible revenues for cinema operators, adding to it the cost of regular disinfections between screenings and other logistical adjustments to keep moviegoers safe. On the production side, location shoots must provide regular Covid testing for crew members. Shooting inside a bubble also has additional costs. Add to that the stress of continuing through production disruptions when a crew member tests positive.

This financial tightening is reflected in the decrease in the number of projects completed over the past two years. The film industry has yet to recover from the losses it has suffered, estimated at 21 billion pesos due to the pandemic.

Along with financial constraints, changes also come with a hidden cost – strain in relationships. To protect family members, production members choose to self-isolate or temporarily live away from home. Friendly on-set banter or the simple joy of bonding after a long day of filming has also given way to less intimate on-set interactions to follow regulations.

The passage of the Movies and Live Events Recovery Bill at third and final reading is welcome news. It aims to reduce the tax on creation collected from theatres, cinemas and other places of entertainment from 10% to 5%. The bill will now go to the Bicameral Conference Committee for approval. Once approved, this can bring relief to our stakeholders.

Desperate times, desperate measures?

This year is a game changer. The direction in which our filmmakers pivot due to the financial challenges of production will decide where we are in the years to come. During the 1970s, filmmakers’ time and money constraints paved the way for the popularization of raunchy films with low production budgets. They were quick and inexpensive to manufacture. The same trend occurred in the mid-1990s during the Asian economic crisis.

Exhibitors are challenged to adapt to meet the challenge of the times.

Hopefully our industry will not succumb to the charms of speed and ease and will remain committed to quality in both content, artistic merit and technical aspects. It can be tough, but the raunchy can also be smart and progressive, as long as it’s well thought out and well executed.

Unlike previous decades, the Filipino viewer is now more exposed to international films. Technology has placed a library of movies of all shapes and sizes at the viewer’s fingertips, accessible anytime, anywhere. With many options and means of comparison, the films we produce, to live up to their international counterparts, must be consistent in their standards.

The Value of Filipino Content

As an industry, we must work together to improve the value of Filipino content in the international market. Unfortunately, our current status in terms of the monetary value given to titles originating from the Philippines is lower than that of other Asian countries. For example, a streaming platform may offer a lower bid for the streaming rights to a Filipino movie.

I believe the first step in adding value to our films on the world stage is to develop a reputation for quality and consistency in the films we produce. It requires a collective effort from everyone in the industry – from conscious filmmakers to a supportive government, and everything in between.

Filipino films that make waves at international festivals boost the image of the local film industry. These films and filmmakers become our ambassadors around the world. They contribute to positioning our country as a hub of filmmaking. The challenge for us is to commit to investing in the history and talent development of our productions and to ensure that we consistently produce projects that we can truly be proud of.

Evolution of exposure

It’s definitely been a tough two years for theater owners, not only because of closures, but also because of the rise of streaming services. Does this mean that movie theaters will be obsolete like betamax, VHS and DVD? Of course not. Movie theaters offer an experience that viewing on a small screen cannot. Theaters remain a place for live social interaction, but with social distancing. Large screens and surround sound equipment provide a full cinematic experience unique to cinemas.

The challenge for filmmakers is to make films that are worth seeing in theaters. The challenge for cinema operators is to maintain excellent technical standards despite the added costs of maintaining a safe space for moviegoers. Cinemas sell because they sell the cinematic experience. Must be worth getting out of the house.

Exhibitors need to think and adapt quickly. Cinemas around the world have tried techniques to attract audiences, from holding outdoor screenings to showing concerts, hit TV series and highly anticipated live sporting events. Some have opened up to organizing game sessions to invite filmmakers for short interviews.

These are just a few of the many talking points we can discuss and there are so many more! We are still in transition and the term “new normal” has already become tired and clichéd. We are in the midst of the active process of defining what “normal” means. Technology will also bring about changes not only in entertainment, but also in the way we do many things. This year will be a year of pivots, changes and thinking about our feet. Above all, this year is a chance to be better and to grow.