What Germany’s Pitch Reform Means for Commercial Production
[Photo by Pixabay]
German production companies banded together earlier this year to do something that the industry has been talking about for an age – charging for the costs incurred during the pitch process.
Within adland, production companies have been in pitching wars for years, selling their directors and ideas to brands to get them working on a spot, all while losing money in a process that doesn’t guarantee work for the people involved. The outdated and quite frankly unfair practice has been recently exacerbated by the covid-19 pandemic, financial crises and general rise in the cost of living. And Germans had enough.
Together with the Producers Alliance Advertising Section, the Directors Association DRCT set out to modernise the pitch processes for advertising film productions in the country. In a strategic alliance, both associations developed the pitch reform that will serve as the basis for all pitches from 2024 onwards.
Both parties even created an educational video explaining the reasons behind the change. In return, the production side of the industry in Germany all sighed in collective relief as they now know the uphill battle for fairer fees just got a little less steep.
So why did this come into effect now, how is it impacting the industry already and what’s to come in the future? These are all questions LBB’s Nisna Mahtani asked Sweetspot, Tony Petersen film GmbH, Media.Monks Berlin and REKORDER to hear more from the German industry itself.
Daniel Kottirsch and Felix Antretter
Co-founders at Sweetspot
Pitching has become an increasingly frustrating part of everyday life in production companies - whether it’s that five or more companies compete against each other, pitches end up with no award at all (ghost pitches), or the fact that pitch costs have been escalating continuously over the last decade. Together with our directors, we couldn’t wait any longer for things to change. Instead, we decided that the time has come to act now. In changing the pitch standard, every party will benefit from this in the long run, as pitches will get more transparent and appreciative.
Already, the awareness of the existing culture and its flaws is more than ever present in all of our minds. This is already a huge step, I believe that a change like this is something which can only happen if people start to talk about it.
The rest of 2023 basically serves as a transition for our new pitch standard – getting everybody used to it before the 2024 model is applied effectively. The best support we can get is to keep talking about it, especially about what’s wrong with the current status quo. Rather than just being unhappy with it, we all need to start using our voice. If we speak together as a group, our common voice becomes a powerful tool.
The good thing is that it is already impacting other markets, such as the Netherlands, Spain, France, the UK, Switzerland and even the US. Industry internationalisation is for sure helping this process since a lot of us act in multiple markets.
Alexis Champa
Executive creative director at Media.Monks Berlin
Personally, and working at Media.Monks, which is a company that works across craft and creativity, this is a development I wholeheartedly support - it should be an industry standard. Creativity is a business, and that means that it needs to be compensated. Creativity needs to support craft and vice versa.
Overall, it’s important that as an industry we work together to build a healthy ecosystem, both business and talent-wise, where independent companies have the opportunity to flourish just as much as networked companies. It’s a tough time, where not just clients, but also companies within our own industry, need to do more for less – better, faster, cheaper, more and more efficient.
If we want to grow as an industry we need to support talent, emerging and existing. That is what this reform stimulates: more equality for creative and craft compensation. It helps keep the playing field even, supporting independent and smaller production shops. They are important for bringing individuality within our industry and preventing homogeneity. Something we should all strive for.
Finally, I think there’s also a big educational element to this. It’s important for everyone in the industry, from clients to creative agencies, to see the love, craft and effort that goes into pitching and creativity. Creativity and craftsmanship don’t operate in silos.
Michael Duttenhöfer
Managing partner at Tony Petersen Film GmbH
It’s true this is not a new topic. But we reached a shift in the industry where the former exception became more and more the standard - an increase of pitch participants, an increase of cancelled pitches, an increase of costs, increase of unrealistic tasks (fit to budget approaches). All of that led to the overall opinion that action is needed sooner rather than later.
The biggest impact so far has been that we got a bigger conversation going - a lot of people are now talking about necessary changes. The PCS (pitch cost share) model and its implementation (and therefore the involvement of money) lead to a necessity to get the right people at the table. Something we struggled to achieve until now. Also, everyone from directors to production companies and agencies are already more aware and trying to streamline the pitch process.
The problems we have in Germany I believe are universal and also exist in most of the other main markets. The same problems usually lead to similar solutions. We know we’re being carefully watched and many other markets and colleagues have shown interest already in the specifics of the model. So yes, it will have an impact, hopefully a positive one.
Besides that directors around the globe started a conversation already. I believe we will see similar and maybe even bigger movements like DRCT as well.
The next step is to continue talking to create awareness and comprehension, and then in January 2024 enforce the model in the market. We hope it won’t have much resistance because it is a very fair and considered model for all parties involved, but we also expect a few bumps on the way.
Also, we need to get used to the idea that our industry is changing - fast. And if we do not find a way for all, including the agencies and clients, to come together regularly to discuss and work on a common future and framework for it, we will see very soon bigger issues on more pressing matters like: green production and sustainability, A.I., new legislation from the EU/Germany – in regards to labour law and working hours – young talent across the board, etc.
If we deny furthermore the fact that our industry is right in the middle of a very fast and deep transformation we will see a decay of standards, professionalism and ethics very soon. It’s hard to believe anyone will want that.
Werner Klemm
CEO at REKORDER
We consider the pitch fee above all as an expression of appreciation and quality assurance. The pitch fee can ensure that the selection of pitch participants is made more thoughtfully and conscientiously.
We have been waiting for the pitch fee for a number of years. Now it is finally here. Charging a pitch fee adds a certain professionalism and seriousness to the pitch process. It shows that clients appreciate and respect the work.
