Former CBS president Jeff Sagansky has a plan which might change the face of Israeli movie production. He is currently working intensively to set up a fund in which hundreds of millions of dollars will be invested to promote Hollywood movie production in Israel.
Globes: So why here of all places?
Sagansky:"Because I am Jewish and I love Israel. And because it's good business."
Sagansky, 58, is one of the most influential people in the American TV and movie industry. He was here in May for a series of secret meetings. He is currently head of a range of companies and funds that finance Hollywood movies and popular TV programs. One of these, the Winchester Fund, produces successful US TV series such as The Tudors and Leverage, and movies like the Coen brothers "The Men Who Stare at Goats." Now he wants to set up a fund dedicated to productions in Israel.
Sagansky and Israeli producer Jacob Kotzky, who made 'Rambo' 'Iron Eagle' and 'Shlaga', they held a series of meetings with investors to try and persuade them to join their venture.
Sagansky said, "The objective was to examine Israel's entire television industry and especially to examine the logistics of bringing Hollywood style production to Israel. Israel has so many advantages in this field."
What for example?
"There is a wide range of landscapes to photograph. As part of the financing we provide to various productions, we also advise companies where to shoot. Israel has deserts, beaches, hillsides with swift access from place to place. The costs of production are also low in Israel. There are very skilled teams here for building sets at very reasonable prices, and production in Israel should be 25% less than in Hollywood. I've also found amazing cooperation with organizations here such as the army, with whom I produced 'Iron Eagle.' That was a type of cooperation that I couldn't find anywhere else in the world. The weather here is also excellent and in fact it is possible to shoot throughout the year. The government must try its best to tell producers about this."
How much revenue are we talking about?
"Let's say that the movie industry in Israel produces 12 movies a year at a total cost of $15-20 million. That's the cost of one movie in Hollywood. There is an opportunity to bring in more. When people are prepared to go to Canada, which is cold and has no weather advantages, there is no reason not to come to Israel."
Over the years, we produced Israeli movies like 'Rambo' and 'Not Without My Daughter' but we lost our position in the field?
"A number of things happened. People read in their newspapers about the instability and violence and if you're not here you think it is happening all the time. People do not understand the significance. Ultimately it is the decision of the studios and the producers. In addition, Israel did not encourage movie shoots here. You can go to any state in the US and see more successful incentives. Meanwhile, other countries raised their incentives, and Israel went in the opposite direction and made conditions less flexible. Israel has 17% tax breaks but it's very complex and unclear, and dependent on inaccessible criteria."
What do you suggest?
"It will not be difficult for Israel, in my opinion, simply to change its system of incentives, to make things easier for producers to come here and understand them. 17% isn't enough, it has to be 25% and especially not structured the way it is today. It must be through tax allowances or direct tax rebates after the State confirms that the production has been made as declared."
Why do we Israelis need it?
"There are a number of reasons. Movies are an excellent tool for branding an image or public relations. If people see a movie that they like and know that it was shot in a certain place, they say 'We want to go there.' At the same time the producers want to return and that develops the industry. You develop a business that is a long term investment for the country. Look what is happening to Canada, there is an industry there employing tens of thousands in the sector."
What do you expect from the investors?
"There is an advantage from the point of view of investors because of the capabilities on the topic of tax. We want to set up a fund that will invest in movies in Israel not only movies about Israel. If you look at Israeli television and its achievements, you see scripted and reality programs that are sold worldwide."
Published by Globes [online], Israel business news - www.globes-online.com - on June 15, 2010
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