Runaway Production - Creative and Economic Runaways

Creative and Economic Runaways

A report commissioned by the Directors Guild of America (DGA) defined two classes of runaway productions. "Creative runaways" are film and television projects that are produced, in part or in whole, outside the United States based on requirements of the script, setting, or due to preferences of the actors or director. Alternatively, "economic runaways" are productions made in other countries to "reduce costs." This type of production typically involves films that are set (written to be shot) in the United States but which instead have been outsourced to other countries such as Canada, Australia, Fiji, Germany, Hungary, Ireland, New Zealand, South Africa, or the United Kingdom.

According to CEIDR, Canada receives 90% of U.S. runaway productions, and offers the bulk of the government subsidies. A subsidy is defined as financial contributions or kickbacks where "government revenue that is otherwise due is foregone or not collected", according to GATT – General Agreement on Tariffs and Trade.

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