The pre-pro, production and postproduction of the so-called "traditional media"-films, TV programs and commercials-generated approximately $5 billion in direct expenditures last year in New York City. Using an economic multiplier of two to account for indirect spending, the total impact reached $10 billion in ’99.
These were among the key findings released last week from a study conducted by The Boston Consulting Group (BCG) and commissioned by the New York City Investment Fund and the Office of the Comptroller.
Traditional media business represents more than 70,000 jobs in the city, according to the BCG. Building upon some earlier research, the study also reported that digital media in ’99 generated an additional $5 billion in direct spending, and 100,000 jobs for the local economy.
Morty Dubin, chairperson of the New York Production Alliance (NYPA)-the broad-based industry contingent that presented New York City comptroller Alan G. Hevesi with the idea for the study-commented, "The results quantify the importance of the production industry to the government, which gives us much more advocacy strength than ever before. And number two, the report gives entrepreneurs looking for capital in New York [the figures] they can quote about the ability to make money here."
The findings make New York City the second largest production market in the U.S. (behind Los Angeles), said Pat Swinney Kaufman, deputy commissioner/director of the New York State Governor’s Office Of Motion Picture And Television Development during a press conference held at NBC Studios, New York.
Of the $5 billion in direct "traditional media" expenditures, $800 million came from commercials. Features and television shows each contributed $2 billion to the pie. The BCG also stated that "traditional media" production (principal photography) spending accounted for 80 percent of the $5 billion. Postproduction and preproduction each amounted to about 10 percent of the total.
Hevesi added that "the results are far better than we expected." An earlier study released by the Mayor’s Office of Film, Theatre And Broadcasting had put ’99 production expenditures at $2.5 billion. That estimate, though, was based mostly on data from permits for production shoots in New York. The BCG figures encompassed expenditures in pre- and postproduction as well as non-permitted production shoots.
BCG VP/managing director Arnon Mishkin spearheaded the study. Additional contributors included The Mayor’s Office of Film, Theater And Broadcasting, and the New York State Governor’s Office For Motion Picture And Television Development.
