Leadership L A 071307

Slide1: 

CREATIVITY, THE FILM INDUSTRY AND LOS ANGELES Leadership L.A. Jack Kyser Chief Economist, LAEDC July 13, 2007

All we do in L.A. is make movies...: 

All we do in L.A. is make movies...

Not true, but the movie industry is a “keystone” activity: 

Not true, but the movie industry is a “keystone” activity

ECONOMIC BASE OF SO. CALIFORNIA -- 2006The “Export” Industries(Annual average Nonfarm employment, in 000s): 

ECONOMIC BASE OF SO. CALIFORNIA -- 2006 The “Export” Industries (Annual average Nonfarm employment, in 000s) Source: CA EDD

But think of the Linkages: 

But think of the Linkages

ECONOMIC BASE OF SO. CALIFORNIA -- 2006The “Export” Industries(Annual average Nonfarm employment, in 000s): 

ECONOMIC BASE OF SO. CALIFORNIA -- 2006 The “Export” Industries (Annual average Nonfarm employment, in 000s) Source: CA EDD

Most obvious linkage -- tourism: 

Most obvious linkage -- tourism

An important new linkage -- technology: 

An important new linkage -- technology

But the film industry has problems: 

But the film industry has problems

Problem 1visible but invisible: 

Problem 1 visible but invisible

EMPLOYMENT TRENDS IN HOLLYWOOD: 

EMPLOYMENT TRENDS IN HOLLYWOOD Annual, 000s Monthly, 000s Source: CA EDD

EMPLOYMENT TRENDS IN BROADCASTING IN LOS ANGELES COUNTY: 

EMPLOYMENT TRENDS IN BROADCASTING IN LOS ANGELES COUNTY Annual, 000s Monthly, 000s Source: CA EDD

INDEPENDENT ARTISTS, WRITERS, & ENTERTAINERS EMPLOYMENT TRENDS IN LOS ANGELES COUNTY: 

INDEPENDENT ARTISTS, WRITERS, & ENTERTAINERS EMPLOYMENT TRENDS IN LOS ANGELES COUNTY Annual, 000s Monthly, 000s Source: CA EDD

TRENDS IN NUMBER OF NONEMPLOYER INDEPENDENT ARTISTS IN L.A. COUNTY: 

TRENDS IN NUMBER OF NONEMPLOYER INDEPENDENT ARTISTS IN L.A. COUNTY Source: Bureau of the Census

BOX OFFICE SALES: 

BOX OFFICE SALES Billions $ * Includes U.S. Source: MPAA

U.S. CONSUMER SPENDING TRENDS ON DVD: 

U.S. CONSUMER SPENDING TRENDS ON DVD Billions $ Source: The Digital Entertainment Group

GDP IN CALIFORNIA & GDP GENERATED BY MOTION PICTURE & SOUND RECORDING INDUSTRIES: 

GDP IN CALIFORNIA & GDP GENERATED BY MOTION PICTURE & SOUND RECORDING INDUSTRIES Billions of $ Source: U.S. Bureau of Economic Analysis

Problem 2The industry is not well understood -- it’s what you see on “Entertainment Tonight” or “Access Hollywood”: 

Problem 2 The industry is not well understood -- it’s what you see on “Entertainment Tonight” or “Access Hollywood”

SOME KEY NUMBERS FOR THE ENTERTAINMENT INDUSTRY IN LOS ANGELES COUNTY: 

SOME KEY NUMBERS FOR THE ENTERTAINMENT INDUSTRY IN LOS ANGELES COUNTY For every direct job in the industry, 2.7 additional jobs are supported in the local economy. State tax revenues generated in 2005 = $1.8 billion Source: “Report on the Creative Economy of the Los Angeles Region”

Problem 3Run-away Production: 

Problem 3 Run-away Production

LOCATION PRODUCTION DAYS: 

LOCATION PRODUCTION DAYS All Others Features Source: FilmLA Inc.

PRINCIPAL PHOTOGRAPHY ON FEATURE FILMS (07/10/07): 

PRINCIPAL PHOTOGRAPHY ON FEATURE FILMS (07/10/07) * 11 in Canada Source: Hollywood Reporter as tabulated by LAEDC 30 2 27 20*

WHY ARE OTHER STATES OFFERING TAX INCENTIVES?: 

WHY ARE OTHER STATES OFFERING TAX INCENTIVES? State Tax Jobs1 Revenue A commercial 7 FTE $ 48,000* One-hour TV drama 720+ 3,100,000 Mid-budget Feature film: $17 million budget 304 1,784,000 1 Direct & Indirect + Entire Season * Sales and State Income Tax Source: Analysis by LAEDC for the California Film Commission

Problem 4A major change in the industry’s environment: 

Problem 4 A major change in the industry’s environment

MAJOR CHANGES IN THE FILM INDUSTRY’S ENVIRONMENT: 

MAJOR CHANGES IN THE FILM INDUSTRY’S ENVIRONMENT It is a global industry -- for both box office and production End of the DVD “boom” Change in delivery of content due to technology Where are the revenue streams?

Problem 5Other Items: 

Problem 5 Other Items

THE OTHER ITEMS: 

THE OTHER ITEMS Piracy A slew of labor contracts to negotiate Land use/cost in Los Angeles -- what can you afford? Will you have to move?

Do we really understand the power of creativity in Los Angeles?: 

Do we really understand the power of creativity in Los Angeles?

SOME FAST FACTS ON CREATIVITY IN L.A. COUNTY: 

SOME FAST FACTS ON CREATIVITY IN L.A. COUNTY Sales/Shipments/Receipts in Billions$

But what about “nontraditional” creative industries?AerospaceBio-medicalTechnology: 

But what about “nontraditional” creative industries? Aerospace Bio-medical Technology

Is Los Angeles the Creative Capital of the world?: 

Is Los Angeles the Creative Capital of the world?

How can we grow this activity?: 

How can we grow this activity?

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