FilmL.A.–the official film office of the City of Los Angeles, the County of Los Angeles and other area jurisdictions–announced that L.A. area on-location filming increased 9.5 percent in the third quarter compared to the same period last year (11,792 permitted production days in 2013 vs. 10,773 PPD in 2012). FilmL.A. characterized the quarter as one of modest recovery; even as local TV production lagged.
On-location feature production increased 19.5 percent for the quarter to 1,959 PPD, a continuing sign of recovery in a segment long punished by runaway production. The category outperformed its five-year quarterly average by 14.6 percent, while still falling thousands of PPD short of its record setting return in 1996. Feature film production, like scripted television production, is important because of its significant employment and spending impacts.
“I’ve made the industry a priority for my administration because it generates 500,000 jobs,” noted Los Angeles Mayor Eric Garcetti. “This isn’t about the stars we see on the screen but about carpenters, caterers, and electricians and the stores they shop in.”
Garcetti recently selected Hollywood vet Tom Sherak, former president of the Academy of Motion Picture Arts and Sciences, to lead efforts to make Los Angeles more film-friendly and raise awareness among state lawmakers about the importance of the production and post industry and the need to support efforts to keep and attract more entertainment business.
Already in place is the California Film and Television Tax Credit Program which has helped support local Feature production since 2009. State-qualified feature projects generated 107 PPD this July through September, comprising 5.5 percent of the category’s quarterly total. State-qualified feature projects in L.A. included Best Man, Jersey Boys, Kitchen Sink, OT Beach and Ride.
The television production category, which remains the region’s largest measurable film production driver, finished the quarter down 3.6 percent to 4,091 PPD.
Local TV production is depressed generally, but double-digit declines in on-location TV reality (down 14.3 percent to 1,353 PPD), TV sitcom (down 15.0 percent to 517 PPD) and Web-based TV production (down 15.6 percent to 357 PPD) are most to blame for TV’s quarterly decline.
California’s Film and Television Tax Credit Program did its part to bring new projects to the Los Angeles region this past quarter. State-qualified TV projects generated 182 PPD from July through September, comprising 18.5 percent of all TV drama activity. State-qualified TV projects in L.A. included Lost Angels, Major Crimes, Rizzoli and Isles and Teen Wolf.
The commercials category finished the quarter up 17.7 percent to 1,925 PPD, its strongest showing so far this year. Production in this category has increased dramatically over the past few years. Until this quarter, 2013 production levels were trailing industry expectations.
“Any increase in local production is cause for celebration, as long as we don’t lose sight of the big picture,” noted Paul Audley, president of FilmL.A. “California has yet to match and overcome out-of-state competition for this business.”
Audley made a case for strengthening and expanding the scope of the California Film and TV Tax Credit, offering an example. “For feature film production to be where it once was and should be in L.A., production would need to increase by 125 percent. Until Sacramento acts to level the playing field, we won’t see the kind of growth and prosperity that California families are counting on.”
Industry lobby
Lobbying for an expanded tax credit program in the Golden State is the California Film and Television Production Alliance, a coalition of guilds, unions, producers, and associations that have worked together for more than a decade. Among the member groups in the Film and Television Production Alliance are: the Association of Talent Agents; California Teamsters Public Affairs Council; Directors Guild of America; FLICS–Film Liaisons in California Statewide; the International Alliance of Theatrical Stage Employees; International Brotherhood of Teamsters, Local 399; Laborers’ International Union of North America, Local 724; Motion Picture Association of America; Producers Guild of America; Professional Musicians Local 47; Recording Musicians Association; and SAG-AFTRA.
The Film and Television Production Alliance voiced its approval for: the California State Assembly Revenue & Taxation Committee; Arts, Entertainment, Sports, Tourism and Internet Media Committee; and particularly chairmen Raul Bocanegra and Ian Calderon for coordinating this past Wednesday’s oversight hearing. Joined by Senator Ted Lieu, Assembly members Richard Bloom, Adrin Nazarian, and Cheryl R. Brown, the committees reviewed the strong and positive fiscal impact of the state’s film and television tax incentive program and encouraged vital public discussion about this crucial legislation.
In a formal statement, the Film and Television Production Alliance, said, “We thank the chairs for their recognition of the need to address the limitations of the current [California Film and TV Tax Credit] program. We strongly share the commitment to build upon this successful incentive program that provides critical economic development opportunities to the state and its working people. As industry after industry flees California, working to enhance this incentive for in-state film and television productions is the smart move toward economic prosperity.”
The Alliance went on to point out, “California created its film and television tax incentive program with a $100 million allocation in 2009 and has since experienced $4.75 billion in direct aggregate in-state production spending by 269 films and TV series. These productions have employed more than 50,000 cast and crewmembers and more than 400,000 background actors. The Alliance fully supports the California film and television tax incentive program and is committed to working with the legislature to enhance it.”
