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?
Gene Hackman Died Of Heart Disease; Hantavirus Claimed His Wife’s Life About One Week Prior
Actor Gene Hackman died of heart disease a full week after his wife died from hantavirus in their New Mexico hillside home, likely unaware that she was dead because he was in the advanced stages of Alzheimer's disease, authorities revealed Friday. Both deaths were ruled to be from natural causes, chief medical examiner Dr. Heather Jarrell said alongside state fire and health officials at a news conference. "Mr. Hackman showed evidence of advanced Alzheimer's disease," Jarrell said. "He was in a very poor state of health. He had significant heart disease, and I think ultimately that's what resulted in his death." Authorities didn't suspect foul play after the bodies of Hackman, 95, and Betsy Arakawa, 65, were discovered Feb 26. Immediate tests for carbon monoxide poisoning were negative. Investigators found that the last known communication and activity from Arakawa was Feb. 11 when she visited a pharmacy, pet store and grocery before returning to their gated neighborhood that afternoon, Santa Fe County Sheriff Adan Mendoza said Friday. Hackman's pacemaker last showed signs of activity a week later and that he had an abnormal heart rhythm Feb. 18, the day he likely died, Jarrell said. Although there was no reliable way to determine the date and time when both died, all signs point to their deaths coming a week apart, Jarrell said. "It's quite possible he was not aware she was deceased," Jarrell said. Dr. Michael Baden, a former New York City medical examiner, said he believes Hackman was severely impaired due to Alzheimer's disease and unable to deal with his wife's death in the last week of his life. "You are talking about very severe Alzheimer's disease that normal people would be in a nursing home or have a nurse, but she was taking care... Read More