As a seasoned industry veteran with decades of experience under my belt, I can confidently say that California’s current approach to film and television tax incentives is akin to a talented chef neglecting to season their dish – it lacks the necessary flavor to truly satisfy.
Although Hollywood continues to captivate audiences as the cradle and hub of the contemporary TV and movie industry, it no longer serves as the epicenter of our entertainment production sector. With our impressive array of studio facilities, diverse geographical landscapes, abundant resources, and skilled production teams, one might expect Hollywood to thrive. However, it has been shedding production jobs for over a decade due to our state’s inability to match the tax incentives and lower production costs provided by other regions.
Last month, there was a promising instance where Governor Gavin Newsom suggested doubling California’s annual film and TV tax incentive program to $750 million. Although the Governor presents persuasive economic reasons for film and TV tax credits, such as job creation, increased GDP, and additional tax revenue, his plan doesn’t seem fully competitive or extensive enough.
Based on FilmLA’s latest Q3 2024 report, there has been a significant decrease in unscripted production in Los Angeles – a drop of 56.3% in just one quarter. Interestingly, this decline in reality production during the summer was so substantial that it overshadows the overall reduction observed across all filming categories over the past year. This trend is cause for concern among Californians, as it has tangible effects on our local economy and the employment of workers within the local industry.
The Governor’s existing strategy doesn’t quite match the ambitious aim required to reinstate California as a leading player in global entertainment, particularly with regards to unscripted television – a field I am exceptionally knowledgeable about, and one where the rapid growth, longevity, and expansion of franchises can bring substantial economic benefits to local communities.
In our field, unscripted programs play a significant role and make up a crucial portion of every television broadcaster’s programming lineup. As per recent Statista reports, at least 25% of all network and streaming content is unscripted. For numerous networks and streaming platforms, particularly the traditional TV broadcasters, this proportion is closer to half. Additionally, it’s worth noting that most shows on the rapidly expanding FAST channels (Free Ad-Supported Streaming Television) are unscripted, and this trend is only increasing.
Nevertheless, the Governor’s proposal seems to overlook unscripted television as a potential hub for tax savings, instead focusing on scripted television and movie productions. This consistent disregard for our genre in the California tax incentive program is unfortunate. With production budgets becoming tighter and the industry expanding, other regions have attracted producers by offering cost-cutting incentives.
Initially, the expansion of filming locations faced some obstacles – there weren’t enough local production teams available to meet the surge in demand for human resources. However, through collaborations between public and private sectors, as well as on-the-job training programs, this gap has been bridged over time. Today, unscripted shows are being efficiently produced outside of California, relying on local talent, production facilities, and tax incentives, which have proven beneficial for multiple seasons.
Over the last few years, it’s been advantageous for Banijay Americas’ companies to film in locations such as Georgia, Connecticut, the UK, Australia, Panama, and Canada. This is particularly beneficial due to Banijay Entertainment’s extensive global presence, which makes it relatively effortless to transition between countries and collaborate with top-tier production partners worldwide.
I’m eager to witness California resuming productions with vigor. To achieve this goal, our state needs to enhance its competitiveness in the current production industry. This can be done by making several crucial adjustments to the California Film and Television Tax Credit Program.
— Add Non-Scripted Productions as an Allocation Category
— Remove the Cap on the annual budget for incentives
— Raise Credit Percentage for TV Production to at least 30 percent, or higher
— Allow Tax Credits to be Refundable
From my perspective, this situation isn’t merely about preventing losses in production, but rather transforming California into a leading hub for the entertainment sector. For many of us who have navigated our careers here, Hollywood symbolizes more than just a location – it embodies a dream. Before we began scrutinizing profit margins, we harbored dreams of crafting narratives that stirred emotions. To preserve this enchantment and ensure our skilled teams remain employed, California needs to cultivate an economic landscape that fosters its most valuable and prosperous industry.
Ben Samek heads up Banijay Americas, a significant segment of the international entertainment conglomerate Banijay. With Samek at the helm, this division generates approximately 1,700 hours of unique content each year, featuring popular shows such as MasterChef, The Summit, LEGO Masters, Below Deck Franchise, Como Agua Para Chocolate, The Challenge, Love is Blind Brasil, and La Casa de los Famosos.
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2024-11-26 18:24