FilmL.A.–the not-for-profit community benefit organization that coordinates permits for filmed entertainment shot on-location in the City of Los Angeles, unincorporated parts of Los Angeles County and other local jurisdictions–has reported that on-location filming across all categories increased 4.7 percent in the first quarter of 2011 compared to the same period in 2010. It was the fifth consecutive quarter of production gains recorded for the region, although the bulk of the observed growth in permitted production days (PPD) occurred outside the most closely watched categories–features, television and commercials production.
Production of commercials increased 2.4 percent in the first quarter of 2011 vs. the same period in the prior year (2,083 in 2011 vs. 2,034 PPD in 2010). The category appears to be winding down from an eighteen-month surge that last year delivered a record year-over-year increase and a return to 2006 filming levels.
Production in the television category dropped 3.7 percent in the first quarter (4,701 vs. 4,881 PPD) led by losses in the TV reality (down 6.4 percent) and television drama (down 2.6 percent) production subcategories, among others.
The typically modest TV sitcoms category (up 77.3 percent) benefited from a creative shift toward single-camera comedy shows that pull film permits. Production of TV pilots also grew slightly over the last three months (up 4.7 percent).
FilmL.A. tracked eight television projects claiming a California Film & Television Tax Credit this past quarter; these projects contributed 100 PPD to the TV category totals.
On-location feature production declined 5.3 percent (880 vs. 929 PPD).
Notwithstanding the direct and measurable impact of the California Film & Television Tax Credit, the feature film category remains weak. Ten incentivized feature projects filmed on-location in Los Angeles this past quarter, contributing 135 PPD; the state credit now fuels 15 percent of feature category totals.
With features and television down and commercials growth slowing substantially, the majority of the increases in local filming are coming from less economically significant industry sectors. Production of music videos, industrial videos, student films and other miscellaneous projects is up 21.5 percent (3,940 vs. 3,243 PPD), contributing the bulk of the quarter’s total PPD growth.
“The latest data suggest a softness in the industry, but not a full loss of momentum,” said FilmL.A. Chair Ed Duffy. “Pilot production is up and we have a couple big features in production, so we’re optimistic about a better set of numbers come July.”
State tax credit
But before those numbers come out, June 1st looms large because that’s when the California Film Commission (CFC) will begin accepting applications for the next $100 million round of funding provided by the state’s Film & Television Tax Credit Program, which was enacted in 2009 to help curb runaway production.
While applications will continue to be accepted after June 1, projects seeking credits are encouraged to prepare in advance and submit on the first day given overwhelming demand.
“The Tax Credit Program has proved to be very popular, and we want to ensure that every qualified project has an equal chance to benefit,” said Amy Lemisch, executive director of the CFC.
Eligible projects that submit an application after June 1 increase the likelihood that they will be placed on a waiting list. Once on the list, they will be accepted only after credits are freed up by other projects that withdraw from the program due to scheduling delays, casting problems or other production-related issues.
Interest in the upcoming round of tax credits is expected to be intense, as the number of projects produced in California as a direct result of the incentive program continues to grow. Thus far, more than 100 have participated, and the list includes feature films such as No Strings Attached and The Social Network, the TV series Justified (FX), and the soon-to-be-released The Muppet Movie and Faster. Each was on track to shoot most or all of the project out of state before qualifying for the incentive.
“The tax credit program is our best tool for keeping California competitive,” Lemisch added. “Projects approved since the program went into effect are responsible for $2.2 billion in direct spending within the state, including $736 million in wages paid to ‘below-the-line’ crew members.”
Certain theatrical feature and TV projects are eligible for tax credit program. Commercials do not qualify for the California incentive.
A detailed update on the incentive program and the new allocation period is available on the CFC’s website at www.film.ca.gov/production alert-application.
