LA Film Production Nosedives In 2009

During the worst economic recession since the great depression, the film industry is absolutely booming.  In 2008, box office revenues hit an all time high of $9.6 billion.  All signs point to the trend continuing through 2009, with first quarter box office revenues up 12% and theater attendance up 8%.  How then is it possible that in Los Angeles, the movie capital of the world, film location work has plunged 56.3% year over year?  The answer, money.  Feature film productions continue their exodus from Los Angeles in droves seeking greater financial incentives to lower production costs.  In the first quarter of 2009, feature film production in Los Angeles registered its lowest level since tracking began in 1993.  With the City’s largest export falling off a cliff, coupled with California’s massive budget deficit, film production tax credits are a simple answer to reverse the declining trend.  If iPod sales dropped 56.3%, I would bet my life that Apple would come up with a solution… and fast! With entertainment being Los Angeles’ core “product”, we need a solution that puts money in both the filmmakers’ and government’s pocket. Film tax credits are a proven money maker for state and local governments – take a look at the success New York’s film production tax credit.

[Update]  Shortly after I published this post, Variety came out with this piece:  Hiring freeze spreads, Hollywood odd jobs drying up