The Commercial Producers Association (CPA) of SA says the South African advertising and film industry is struggling against bid rigging, which favours ad agencies’ in-house production facilities.
Writing in the Financial Mail, CPA executive officer Bobby Amm says an alarming number of suppliers and independent companies are facing potential closure as local ad agencies take an ever-increasing slice of post-production work in-house, while also establishing their own recording studios and facilities.
Amm says this could lead to the closure of production companies that are already feeling the pressure of economic slow-down and the negative effects of globalisation. It could also severely inhibit the industry’s ability to bring in new talent, nurture up-and-coming directors, and generally provide clients with the original and compelling filmmaking that they have benefited from in previous years.
Amm says that the CPA’s only answer to this worsening state of affairs is transparency and clear communication. Critically, given that bidding for work is an expensive and time-consuming task, independent production companies should know if they are competing against in-house entities so that they are able to make an informed choice.