According to the seventh annual AICP Survey of the Commercial Production Industry (see separate story), Southern California’s share of spot production stood at 48 percent in 2008. While that sounds like a healthy figure, clearly the business is eroding in the Golden State.
For ’07, the AICP Survey pegged Southern California’s share at 54 percent. This decline from ’07 to ’08 took place as more AICP-member spotmaking business is returning to the U.S. from foreign countries, meaning as the percentage of overall domestic production increases, California’s market share is decreasing.
As for where the business is going, AICP president/CEO Matt Miller pointed to other states (New York, Illinois, New Mexico, Connecticut, et al) that have economic incentives such as tax credits and rebates in place for commercial production. Furthermore, this dynamic has contributed to significant filming activity outside of traditional production centers. The AICP survey reported that in ’08 about 20 percent of all shoot days, and 26 percent of domestic shoot days took place away from the major production centers of N.Y., Illinois and California.
Last year California pushed through a film tax credit program but commercials were excluded from the incentive. In that commercials and branded content are particularly bottom-line sensitive, cost savings via incentive initiatives carry significant weight in the decision of where to shoot.
“California needs to figure this out,” said Miller. “Producers use incentives to make up for lowering margins and smaller budgets. Being able to use those dollars sometimes makes projects possible to do on behalf of agencies and clients.”
And if the decline in spot production share continues, industry infrastructure could suffer long-term damage in California, continued Miller.
As reported earlier this year, on-location filming in Greater L.A. across all categories (features, TV, commercials) decreased 19.4 percent in ’09 compared to ’08, the steepest year-to-year decline since tracking by not-for-profit organization FilmL.A. began in ’93.
With the state in the throes of a staggering budget deficit and unemployment levels way above the national average, one would think that the powers that be in California would leave no stone unturned in trying to find ways to encourage business and generate revenue. Instead the state is losing out in a sector which was at one time its undisputed province–filmmaking and entertainment.
One argument against incentives is that they aren’t a priority when funding for education, healthcare and other services is hard to come by. Furthermore, there’s the notion that anti-runaway programs amount to little more than subsidizing industry fat cat movie stars and executives.
Both contentions are off base. The fact is that the lack of a competitive incentives package is forcing good paying working middle class jobs out of the state. And the tax revenue that would be generated by keeping those jobs in California could help to bankroll progressive education and social service programs.
How many more services could be provided today if California had taken the proper action to retain the filming business a decade ago?
Utah Leaders and Locals Rally To Keep Sundance Film Festival In The State
With the 2025 Sundance Film Festival underway, Utah leaders, locals and longtime attendees are making a final push — one that could include paying millions of dollars — to keep the world-renowned film festival as its directors consider uprooting.
Thousands of festivalgoers affixed bright yellow stickers to their winter coats that read "Keep Sundance in Utah" in a last-ditch effort to convince festival leadership and state officials to keep it in Park City, its home of 41 years.
Gov. Spencer Cox said previously that Utah would not throw as much money at the festival as other states hoping to lure it away. Now his office is urging the Legislature to carve out $3 million for Sundance in the state budget, weeks before the independent film festival is expected to pick a home for the next decade.
It could retain a small presence in picturesque Park City and center itself in nearby Salt Lake City, or move to another finalist — Cincinnati, Ohio, or Boulder, Colorado — beginning in 2027.
"Sundance is Utah, and Utah is Sundance. You can't really separate those two," Cox said. "This is your home, and we desperately hope it will be your home forever."
Last year's festival generated about $132 million for the state of Utah, according to Sundance's 2024 economic impact report.
Festival Director Eugene Hernandez told reporters last week that they had not made a final decision. An announcement is expected this year by early spring.
Colorado is trying to further sweeten its offer. The state is considering legislation giving up to $34 million in tax incentives to film festivals like Sundance through 2036 — on top of the $1.5 million in funds already approved to lure the Utah festival to its neighboring... Read More