As a seasoned gamer who’s been through countless virtual worlds and real-life adventures in California‘s bustling entertainment industry, I can’t help but feel a sense of relief and excitement about the formation of the California Production Coalition. For years, we’ve witnessed the exodus of productions leaving our golden state for greener pastures lured by enticing tax incentives elsewhere. But with this new coalition, it seems like Hollywood is finally fighting back to keep its rightful place in Hollywood.
With Governor Gavin Newsom preparing to expand California’s film and television incentive program by doubling it from $330 million to $750 million annually in tax breaks for filmmakers shooting in the state, a fresh alliance is emerging to vigorously advocate for maintaining Hollywood within its own territory.
The California Production Coalition, which is made up of more than 30 businesses and organizations, includes studio operators such as Hudson Pacific Properties and Raleigh Studios, payroll providers like Entertainment Partners and Wrapbook, film equipment providers, and the primary industry association for studios, the Motion Picture Association. In simpler terms, it’s a diverse group consisting of various production-related businesses in California.
The launch coincided with an independent survey, which supports their claim that people in this state value the continuation of filming motion pictures in Hollywood. Notably, the announcement came on the same day as the California Film Commission announced they had successfully attracted season two of Apple TV+’s “Bad Monkey” from Florida with a $20 million tax credit incentive.
Charles Rivkin, head of the Motion Picture Association (MPA), expressed pride as our association unites with California businesses to underscore how our artistic industry can increase its impactful offerings and establish a more robust base for film and television production within the state,” said Charles Rivkin. The MPA is made up of members such as Disney, Universal, Sony, Paramount, Netflix, Amazon MGM Studios.
A new collaborative group for film productions has been established following numerous Hollywood projects leaving the state (and venturing overseas) to take advantage of more favorable tax credit incentives. This shift in location has not only affected production companies, but also indirectly impacted businesses like prop houses, studio service providers, and studio lots, which collectively employ many workers within the entertainment industry. The overall decrease in production activity creates a domino effect, impacting these associated sectors.
2024’s third-quarter global production output decreased approximately 17% compared to the same period in 2022 (due to writers’ and actors’ strikes), according to industry monitor ProdPro. Meanwhile, production in Los Angeles county dropped 5% in the third quarter relative to last year, a decline that FilmLA’s office termed as the “least productive” quarter of the year.
Newsom, in late October, flew from Sacramento to Raleigh Studios in Los Angeles, not just because he wanted to, but mainly due to concerns raised by headlines and industry experts. He was there to reveal a plan alongside Mayor Karen Bass, aimed at halting the trend of production companies leaving. As Newsom put it, “By expanding this program, we can keep production local, create countless good-paying jobs, and reinforce the strong bond between our communities and California’s renowned film and TV industry.
It’s worth noting that a survey conducted by the California Production Coalition suggests a significant number of Californian voters favor extending tax credits to encompass more types of programming. The poll indicates that shows like Jeopardy!, American Ninja Warrior, talk shows, and reality TV shows should be included in these credits. The L.A. production sector, particularly reality TV, has been significantly impacted, experiencing a 56% drop in shoots over the past year according to FilmLA’s latest data.
Pam Elyea, owner of History for Hire, emphasized that we should not underestimate California’s film industry and assume we can keep up with global competition without a robust tax credit program. She added, “The California Production Coalition was established by local business owners, studios, and professional groups deeply embedded in our communities. Let’s provide our Californian roots with the financial support they need to grow stronger and more expansive.
Kavon Elhami, who’s part of a coalition and leads Camtec Motion Picture Camera Systems, commented, “Today, we directly experience the hurdles our industry encounters as California’s lead in entertainment is challenged by other regions and nations. Many businesses similar to ours prosper in a bustling production setting. It’s crucial that we unite now to maintain California as the heart of the motion picture world.
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2024-12-18 20:55