2013 feature film production report - hollywood

Download 2013 Feature Film Production Report - Hollywood

Post on 01-Jan-2017

217 views

Category:

Documents

3 download

Embed Size (px)

TRANSCRIPT

  • 2013 Feature Film Production Report

    2014, FilmL.A. Research

    6255 W. Sunset Blvd., 12th Floor Los Angeles, CA 90028 213.977.8600 www.filmla.com

  • AboutthisReport

    ThisreportistheproductofindependentresearchconductedbyFilmL.A,Inc.FilmL.A.isLosAngelesregionalfilmoffice,servingtheCityandCountyofLosAngelesandaneverincreasingrosteroflocalmunicipalities.Providingstreamlinedpermitprocessing,comprehensivecommunityrelations,marketingservices,filmpolicyanalysisandmoretothesejurisdictions,FilmL.A.workstoattractandretainfilmproductioninGreaterLosAngeles.IntegraltoFilmL.A.sworkisongoingresearchintothebenefitsthatlocalfilmingbringstotheLosAngelesregion.Tothatend,thecompanymaintainsaninternalresearchdivisiondevotedtotheproduction,collectionanddisseminationofinformationregardingtheU.S.filmproductioneconomy.OnbehalfofeveryoneatFilmL.A.andthosewhodependonlocalentertainmentproductionfortheirlivelihoods,wethankyouforyourinterestinthisreport.Ifyouhaveanyquestionsaboutthecontentherein,theauthorswelcomeyourinquiries.

    AdrianMcDonald,LeadResearchAnalystFilmL.A.Research

    6255W.SunsetBlvd.,12thFloorHollywood,CA90028

    213.977.8636

    www.filmla.com

  • 1

    ExecutiveSummary

    ThisstudyistheresultofapproximatelysixmonthsofindependentresearchperformedbyFilmL.A.,Inc.,thefilmofficeforthegreaterLosAngelesregion.ItbeganwithadesiretobetterquantifythenegativeeffectsofrunawayproductiononCaliforniassignaturefeaturefilmindustry.

    FilmL.A.Researchendeavoredtotrackthemoviesreleasedin2013todeterminewheretheywerefilmed,whytheyfilmedinthelocationstheydid,andhowmuchwasspenttoproducethem.Topreparethereport,FilmL.A.aggregatedinformationpresentedinmediareportsandpublishedstudies,mostparticularlyreportsfromU.S.statesandforeignjurisdictionsthatoperatepubliclytransparentfilmincentiveprograms.Otherinformationwassourcedfromfilmproductioncompaniesandstudiosthemselves,aswellasinterviewswithindustryprofessionals.

    Thisreportprovidesevidencetodemonstratethattheavailabilityoffilmincentivesheavilyinfluencesfeatureproducerschoiceoffilminglocation.ItfurtherarguesthattheproliferationofoutofstatefilmincentiveprogramshaserodedCaliforniasonetimedominanceofthefeaturefilmproductionindustry.

    ThereportconcludeswithadiscussionofthechangingemploymentprospectsofCaliforniabasedfilmworkers,particularlybelowthelinephysicalproductionemployees,filmproductionvendors,recordingmusicians,visualeffectsartistsandanimators.Casestudiesillustratingtheincreasinglyglobalscopeoffeaturefilmproductionarealsoincluded.

    StudyMethodology

    ThisstudyfocusedonfilmsthatwereproducedbythesixmajorstudiosinSouthernCalifornia("Majors",includingDisney,WarnerBros.,NBCUniversal,Paramount,Sonyand20thCenturyFox)andfiveofthebestknownindependentstudios("MiniMajors",includingDreamworks,Lionsgate,WeinsteinCo.,FilmDistrictandRelativity).

    Atotalof108liveactionandanimatedmoviesreleasedin2013weretrackedforthisstudy.

    TopFilmingLocations

    Fromanationalperspective,theUnitedStateshostedprincipalproductionfor70ofthefilmsinthestudy,whichrepresentsashareof65percent.Canadawasaverydistantsecondwith15movies,whichrepresentsa15percentshare.

    Rankinglocationsintermsofthemostnumberoffilmsthatwereprimarilyproducedineach,Louisianarankedfirstwith18movies.CanadaandCaliforniatiedwith15moviesapiece,followedcloselybytheUnitedKingdom,whichhosted12.RoundingoutthetopfivelocationswastheStateofGeorgia,whichhosted9films.

  • 2

    Ofthe10animatedfeaturesinthestudy,theUnitedStateshostedsix(California:4,Texas:1,Connecticut:1).OfthefouranimatedfilmsproducedoutsidetheUnitedStates,twoweremadeinBritishColumbia,onewasmadeinIndiaandonewasproducedinFrance.

    RunawayProductionImpactonCalifornia

    Withoutexception,everycompetingproductioncenterthathostedprimaryproductionononeormorefilmsofferedsignificant,uncapped,filmincentiveprograms.Themostcommonformoffilmincentiveisrefundableortransferabletaxcreditsthatcanoffsetalargeportionoftotalprojectspend.

    In1997,CanadianProvinceswerethefirstlocationstooffersignificantfilmtaxcreditincentives.TheCanadianmodelwasquicklycopiedaroundtheworld.By2013,morethan40USstatesandadozenforeigncountriesofferedfilmincentiveprograms.

    Fifteenyearsago,Californiasshareofthetop25movies(includingbothanimated&liveaction)attheworldwideboxofficewasacommanding68percent.After15yearsofunabatedrunawayproduction,Californiasmarketshareofthetop25animatedandliveactionfilmsdroppedtojust24percentin2013.

    Excludinganimatedfeatures,Californiasmarketsharefortop25liveactionfilmssufferedevensharperdeclines.In1997,64percentofthetop25liveactionmoviesattheworldwideboxofficewerewhollyorprimarilyproducedinCalifornia.By2013,Californiasshareofthetop25liveactionmovieshadfallentojust8percent.

    Ofthe26liveactionmoviesinthisstudywithbudgetsover$100million,justtwo(TheHangoverPartIII&StarTrek:IntoDarkness)weremadeprimarilyinCalifornia.

    PostProductionandVisualEffects

    OneofthecommonmythsaboutrunawayproductionisthatCaliforniaremainsthebeneficiaryofthebulkofpostproductionandvisualeffectswork,regardlessofwhereprincipalphotographytakesplace.Thisbeliefisincorrect.

    AccordingtotheVisualEffectsSociety,44ofthetop50moviesofalltimewereVFXdrivenfilms.

    Over15yearsago,amajorityofthetopvisualeffects(VFX)companieswerebasedmainlyorentirelywithinCalifornia.Becauseofinternationalcompetitionandthelureoffilmincentivestailoredspecificallyforanimationandvisualeffects,CaliforniasVFXindustryhascollapsed.

  • 3

    TheonlymajorVFXhouseleftinCaliforniacapableofemploying1,000effectsartistsisIndustrialLight&MagicintheSanFranciscoBayArea.Inearly2014,ILMannounceditwasdoublingthesizeofitsworkforceinVancouver,BritishColumbiato200people.Inaddition,ILMannouncedtheopeningofanewfacilityinLondonthatwillemploy200artistsforworkontheforthcomingStarWarsfilms.

  • 4

    Introduction:

    2013wasayearfortherecordbooks.HollywoodquietlysetanewannualrecordattheU.S.domesticboxofficebytakingin$10.9billion.Worldwide,boxofficereceiptsexceeded$30billionfrom622featurefilmsreleasedtheatricallywithinthe2013calendaryear.

    Butnotallfeaturefilmsarecreatedequal.Roughlyhalfoftheglobalboxofficerevenuesfor2013stemfromtheyearstop50films.Ofthe622moviesreleasedin2013,fewerthan160hadproductionbudgetsexceeding$1millionandfewerthan100hadbudgetsexceeding$15million.Inshort,relativelyfew2013filmsaccountedforthemajorityof2013boxofficerevenues.Inmostcases,thetopgrossingfeaturefilmsalsohadthelargestproductionbudgets.

    Inafirstofitskindstudy,FilmL.A.Researchendeavoredtotrackthemoviesreleasedin2013todeterminewheretheywerefilmed(seeAppendixBforlocationmaps),whytheyfilmedinthelocationstheydidandhowmuchwasspenttoproducethem.Tonarrowourfieldofstudy,FilmL.A.focusedonfilmsthatwereproducedbythesixmajorstudiosinSouthernCalifornia("Majors",includingDisney,WarnerBros.,NBCUniversal,Paramount,Sonyand20thCenturyFox)andfiveofthebestknownindependentstudios("MiniMajors",includingDreamworks,Lionsgate,WeinsteinCo.,FilmDistrictandRelativity).Thisyieldedastudysampleof108featurefilms(10animated&98liveaction).Mostofthefilmswereproducedin2012or2013,but23wereshotin2011orearlier.

    Ofthe108movies(seeAppendixCforcompletelist)releasedbytheMajorsandMiniMajors,reportedproductionbudgetsrangedfrom$1.25millionto$225million.Theaverageproductionbudgetinthesamplewas$71million.

    Viewedstrictlyasbusinessventures,thesearethefilmsthatmattermost,notonlytothestudiosbehindthem,butalsotothelocaleconomieswheretheyareproduced.Forthedozensofstatesandnationsnowcompetingforashareofthefilmproductionindustry,these108filmsrepresentover$7.6billionindirectproductionspendingandtensofthousandsofhighwagejobsinawidearrayofprofessions.

    FilmingLocations:WorldwidefilmaudiencesoftenthinkofCaliforniaasthehomeofthefilmandtelevisionindustry,buttodaythisbeliefisrootedmoreinhistorythaninfactwithrespecttofeaturefilms.Today,featurefilmsproducedbyU.S.companiesarefilmedthroughouttheglobe.

    Evenonanindividualfilm,principalphotographycanandoftendoesspanmorethanonelocation.Accordingly,FilmL.A.workedtoidentifybothprimaryproductionlocationsandsecondaryproductionlocationsforstudiedfilms.Forreasonsdescribedahead,thiswasadifficulttask.

    Intheend,ourresearchdeterminedthatnearly20differentU.S.statesandforeigncountrieswereusedasprimaryproductionlocationsamongthisstudy's108films.

    Fromanationalperspective,thegoodnewsisthattheUnitedStatesservedastheprimaryproductionlocationfor65percent(70count)ofthe108filmsFilmL.A.studied.FromaCaliforniaperspective,thingslookalittledifferent.Just14percent(15count)ofthefilmswereprimarilyproducedinCalifornia,causingthestatetoslipbehindLouisianaintotaltrackedprojects.

  • 5

    Louisiana'semergenceasafilmproductioncenterhappenedquickly.Afterjust10yearsofinvestmentinthefilmindustry,thePelicanStatesurgedaheadofCalifornia,thenation'sonetimefilmproduction

    capital.Louisiana,whichsomehavetakentocallingHollywoodSouth,isnowoutpacingtherealHollywoodbyakeymeasureoffilmproductionvolume.

    Canadaalsohostedalargenumberoffilmsinthisstudy.Sincethelate1990's,CanadahasbeenoneofCaliforniasstrongestfilmproductioncompetitors.CaliforniaandCanada(asawhole)eachlanded15trackedprojects(BritishColumbia,OntarioandQuebeceachhostedfivefilms).RoundingoutthetopfiveproductioncentersweretheUnitedKingdomwith12filmsandthestateofGeorgiawithnine.

    Surprisingly,NewYorkwastheprimaryfilminglocationforjustfourfilmsinthestudy,butitwasusedasasecondarylocationforseven.Conversely,Californiaservedasasecondaryfilminglocationfortenfilmsinthestudy.FilmingEmployment:Determiningthetotalemploymentimpactofthe108filmsisthisstudyprovedanunexpectedlydifficulttask.

    65%

    14%

    11%

    2%2%

    5%

    1%

    Intl.Shareof108SurveyedFilms,2013

    USACanadaUnitedKingdomNewZealandAustraliaEurope(nonU.K.)India

    ProductionCenter MoviesLouisiana 18Canada 15California 15UnitedKingdom 12Georgia(USA) 9Ot