News
January 20, 2017
January 20th News Report from your Los Angeles Representative
Happy Friday everyone,
Fourth quarter numbers released this week by film and television permitting and advocacy group FilmLA show that 2016 was the busiest year in film production for Los Angeles since 2009 when California tax incentives were introduced. Details are in the Hollywood Reporter below.
http://www.hollywoodreporter.com/news/los-angeles-2016-film-location-shooting-statistics-965035
Film and television tax credits have also boosted business in New York state: so much so that Governor Andrew Cuomo this week unveiled a state budget that includes a three-year extension of the state’s film production tax credit. As reported in Deadline below, an economic impact report conducted by the state’s economic development arm found that in one two-year period – 2013 and 2014 – the program created more than $5 billion in spending in the state, generated nearly $10 billion in total spending throughout the state’s economy, created more than 60,000 jobs and $3.3 billion in earnings.
http://deadline.com/2017/01/new-york-state-film-incentives-program-extended-1201888655/
Streaming juggernaut Netflix continues its global expansion, as evidenced by its fourth quarter numbers released this week. As detailed in the Los Angeles Times below, Netflix added nearly 7.1 million subscribers worldwide, well above its forecast additions of 5.2 million for the quarter.
http://www.latimes.com/business/hollywood/la-fi-ct-netflix-earnings-20170118-story.html
Netflix's financial success has many countries, including Canada, debating whether to apply a tax on digital services citizens buy from the streaming company. As reported by the CBC below, an internal government document made public this week says the lack of sales-tax collection "not only represents a significant loss of potential tax revenue for government, but it can also place domestic digital suppliers at an unfair competitive disadvantage".
http://www.cbc.ca/news/politics/sales-tax-netflix-bell-rogers-digital-melanie-joly-bill-morneau-internet-1.3937955
Hollywood was rocked this week by the announcement that Legendary Entertainment's chairman and chief executive Thomas Tull will step away from the company he founded in 2005. As detailed in the L.A. Times below, the move comes nearly a year after China’s Dalian Wanda Group acquired Legendary and Wanda has installed Jack Gao as Legendary’s interim chief executive while it searches for a full-time replacement for Tull.
http://www.latimes.com/business/hollywood/la-fi-ct-tull-wanda-20170117-story.html
Finally this week, another huge deal between Hollywood and China has made headlines. As reported in Deadline Hollywood below, Paramount Pictures has closed deals with Shanghai Film Group Corp and Beijing-based Huahua Media for those companies to fund 25% or more of the studio’s entire film slate for the next three years, with an option for a fourth.
http://deadline.com/2017/01/paramount-pictures-china-shanghai-film-group-huahua-media-one-billion-dollar-slate-financing-1201889562/
Before I sign off this week, I want to let Ontario stakeholders know that I will be in Toronto February 6-8th and during that time I look forward to meeting with as many of you as possible. Please feel free to get in touch regarding my visit.
Warmest regards,
Kelly
Kelly Graham-Scherer
Los Angeles Representative
Toronto/ Ontario Film Office