L.A. Mayor Declares State of 'Emergency' as Movie, TV Production Flees Hollywood
Liberals fleeing Liberals
by Ted Johnson, Senior Editor, Variety
Los Angeles’ new mayor has vowed to help stanch the flow of film and TV production jobs out of Hollywood, starting with the appointment of a film czar at City Hall. But to make a real difference, Eric Garcetti needs to convince skeptical state pols to combat the lure of rich tax incentives from outside California.
Two days after this year’s Oscars, Hollywood’s councilman Eric Garcetti, then running for mayor of Los Angeles, staged a media event at Sunset Gower Studios.
Only a smattering of reporters and photographers showed up, perhaps because the gathering was to address “runaway production,” a buzzword that means little for those outside the industry and, for insiders, is a timeworn term for a chronic, unresolved problem alongside piracy and studio accounting.
But Garcetti, a series of location managers and other crew workers who spoke in late February tried convey a message of urgency: Hollywood’s homegrown industry is being ceded to other states and countries whose favorable tax credits are increasingly luring away movie and television production at an alarming rate. As competition both in the U.S. and abroad continues to grow, the state’s market share and longtime stronghold on production jobs and spending are fast evaporating.
“I am starting to see people who have never made a feature film in Los Angeles,” Chris Baugh, location manager for Oscar winner “Argo,” which actually shot in L.A., told the small group outside a soundstage. “In fact, they are afraid to. They are concerned that it is too expensive and too difficult.”
These days studio chiefs insist that filmmakers they work with take advantage of out-of-state incentives to lower production costs, which on a single major motion picture can amount to savings of tens of millions. Those savings are crucial in a franchise-obsessed era when big-budget movies commonly cost north of $200 million to produce, while on the revenue side the DVD market has largely collapsed and cinema attendance has been generally flat over the past decade. In the current climate, most independent projects would not even be produced without incentives.
With the rise in the past decade of state tax breaks for movie and TV filmmaking, California, with its own modest incentive program, can’t compete when the bottom line is the sole factor in deciding whether to shoot in the Golden State.
It is no longer a given that Hollywood is the place where movies and TV shows are produced.
Continue reading: http://variety.com/2013/biz/news/l-a...od-1200589182/
Originally Posted by dinkus mayhem
Originally Posted by basketcase