Cost of lock-in setup weighing on TV shows

MANILA, Philippines — Producing television shows has become more expensive, with networks and production companies spending as much as 40 percent more as they deal with substantial pandemic-related costs.

Production nowadays comes with a hefty price tag, according to industry stakeholders, as the health crisis has forced the TV and entertainment industry to find new ways to survive and ensure business continuity in the new normal.

GMA Network Inc. first vice president for drama Redgie Magno told The STAR the company spends almost P2 million on COVID-19 tests alone of staff, actors and production crew for a lock-in taping of a program that will run for 16 weeks with four lock-in schedules.

On top of COVID-19 tests, expenses for hotel quarantine and accommodation have also emerged as a major cost component, accounting for about 15 percent of the total production cost, according to Magno.

“There was a significant increase in the production cost because of budget provision for pandemic-related costs such as swab tests, hotel quarantine before lock-in, lock-in hotel accommodations, disinfection teams, supplies for disinfection, personal protective gears, isolation tents, etc.,” she said.

“The average cost of producing for a typical TV show (pre-pandemic) was definitely lower compared to producing a show under the current setup,” said Magno, adding that GMA production cost for its dramas has gone up by 25 percent.

For Cignal Entertainment, the film and television production unit of TV5 Network Inc. affiliate Cignal TV, production costs have increased between 10 and 40 percent under the current lock-in setup.

Cignal said swab tests, which is priced at least P3,500 per person depending on the supplier, have indeed become a major cost component in television production at present due to the large number of persons who need to take the test.

“If you have, say 50 or more artists and production crew, multiply the cost of the swab test and you get the total sum of the swab test costs. Also, note that swab tests are done twice—before and after a shooting cycle--and there are at least two shooting cycles comprised of two weeks each to budget for a 13-episode series,” Cignal said.

“Although swab tests are currently a major cost in TV production, the safety and health of our people is a top priority and we are more than willing to spend on these,” it said.

Cignal said costs for accommodation and meals have also significantly jumped by at least 80 percent given that the whole entourage of the artists are also factored into the production expenses.

Also adding into the expanded lists of expenses are the additional health insurance for all members of the production team.

“Pre-pandemic, very seldom do we do lock-in shoots or tapings and house the production group and cast in a hotel. We only do that when we go out-of-town and need to stay there for weeks or when we shoot overseas. Otherwise, everyone goes home to their respective houses after pack-up. Since this is now the new set-up, it is an added expense on production,” GMA’s Magno said.

To mitigate the higher costs, Magno said GMA has reduced the number of production personnel, while its production staff did some multi-tasking.

She said cast and their companions were also lessened, while suppliers were likewise asked to reduce their crews.

“The challenging economic situation brought about by the COVID-19 pandemic is unprecedented, and the television and entertainment industry is in uncharted territories,” Cignal said.

“To soften the budgetary impact, shoots are carefully planned, resulting in fewer shooting days. Manpower is also reduced in compliance with the safety guidelines. Maximizing location sets, adjusting talent fees, and making the most out of the given shooting days are some of the measures currently implemented to mitigate costs as much as possible. We need to adapt because it is difficult to say when things will return to normal,” it said.

Despite the higher costs, however, TV networks and production companies said they are just grateful to have found new ways of navigating through the pandemic by implementing various safety protocols in order to guarantee business continuity.

But major networks and production firms are not alone in experiencing this recent spike in costs.

A TV industry source said even the costs for doing events and advertising shoots have been impacted as well. “The costs for these tests for commercial shoots alone are really high. These labs are earning a lot,” the source said.

“Overall,  the production of TV commercials, to my observation, has gone down dramatically.The shift now gaining traction is social media,” said Dan Villa, chairman of CREATIVILLA and former chairman of the Advertising Board of the Philippines.