CALIFORNIA BUSINESS MINUTE
Films Rebound
02-21-11
Hi, I am Tim Johnson and welcome to the California Business Minute.
The number of on location film permits increased in Los Angeles County in 2010.
Movie, TV and commercial productions increased 16 percent after declining by 23
percent in the previous year, according to a recent report by the Los Angeles
Economic Development Corporation (LAEDC).
“Compared with a year ago, that’s huge change,” said Nancy Sidhu, LAEDC’s chief
economist and one of the authors of the Economic Forecast & Industry Outlook 2011-12.
Also, the number of film production days (off of studio lots) measured by FilmLA
increased 15 percent in 2010 to 43,646 days, compared to 37,979 in 2009. However,
that remains below the peak year of 2006 of 55,400 days.
Additionally according to the report, TV show permits climbed 12 percent year to
year, and permits for commercials shot up 28 percent.
There was also progress made in jobs. The movie and TV production sector in 2010
added 16,500 employees, a 13.4 percent improvement, which according to the report
made it one of the fastest-growing segments.
In December 2010, Sidhu said, there were 144,400 people employed in the motion
picture industry (which does not include independent contractors). That compares
with 130,400 in the same month in 2009. “So it’s a big increase,” Sidhu said. “It
is mostly studio employment, and it is substantial in terms of everything that went
on last year.” The peak year for jobs was 1999, when 146,300 people were employed
in movies and sound recording. Employment in the broadcasting segment (radio, TV
and cable), however, was down. It fell from 18,300 employees in 2009 to 17,917 in 2010.
There was also positive indications related to runaway film production. “The outward
migration of film production was slowed by the state’s program of film tax credits,”
says the study, which notes that California granted $300 million in tax credits to
more than 100 projects in 2009-10. That program provided a 20 percent to 25 percent
tax credit on qualified production expenses, which could be used to offset state
income tax or sales tax.
I am Tim Johnson and this has been the California Business Minute.
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