Christians in Cinema

According to the Los Angeles Times Entertainment section, Sony Pictures announced yesterday a reduction of 350 jobs, (5% of their workforce) both through layoffs and elimination of open positions. Of that number, about 250 were layoffs, including 120 in the Los Angeles area and Culver City studio. Sony Pictures chairman Michael Lynton and co-chairman Amy Pascal said the studio remains profitable, but the economic downturn was beginning to affect some of their lines of business, namely television syndication, DVD sales, and advertising sales.

Last fall, the studio tried to fend off the chances of personnel cutbacks by reducing overtime, travel, entertainment and executive benefits, but that wasn’t enough to save the lost jobs. What made it personal for us was knowing one of the executives whose job was cut.

They’re not the only ones trying to survive by cutting jobs. Viacom (Paramount and MTV) laid off 850 workers last December, or 7% of their global workforce. NBC Universal has gone through cutbacks and layoffs of about 5% of its workforce, and also taken steps to eliminate more expensive, less revenue-producing shows. Disney/ABC cut 200 jobs and announced they will not fill several hundred open positions. 600 executives at the director level or above are being laid off at Disney theme parks worldwide.

As I reviewed this news, I noticed a trend – similar announcements were made in 2001, and before that in the ’80s, and before that…it’s a cyclical trend.

You’d think executives and corporate leaders would learn the first time around, but either they’re gone or their memory is. If in an unstable economy you can afford to cut 10% of your workforce, it begs the question: Did you really need that extra 10% in the first place? If you can cut expenses in this economy, why can’t you do it at other times?

Please don’t read this as a lack of sympathy toward those who were laid off – I know what it’s like to lose a job without a lot of warning, and to wonder where the next one is going to come from. But if executives at the top were really committed to providing a good entertainment product at the best price possible, and knew layoffs might be in the future, would they be more careful about structuring their companies and keeping a handle on expenses?

Independent filmmakers have an edge over studios in that they have to watch the budget or else they won’t get their film made. They have to watch every penny, and if it squeaks as it’s being pulled out of your fingers, all the better. As you experience success with the sales of your DVDs and increasing exposure to consumers, never forget the sound of that penny squeaking. None of us can afford to take anything for granted. If anything, we should be examples to the world of good stewardship with our resources.

When Jesus talked about the cost of being a disciple, he used the examples of a man building a tower or a king going to war. Who wouldn’t count the cost first before taking on their task?

Don’t be worried by the economy, but be wise and count the cost first.

Need help budgeting? Here are some sources I found in a quick Google search.: 

This indie site has a post on budgeting, along with an Excel worksheet you can download.

There’s always Amazon (but you have to buy a book).

FilmBudget.com will even provide a budget and production schedule for you.

[Image by Free-StockPhotos.com]