Film and the Creative Economy in Washington

Summary

A presentation titled Film and the Creative Economy in Washington, given to the Senate Committee on Business, Financial Services, and Trade by Lisa Brown, Director of the Washington State Department of Commerce, dated March 25, 2021. It states that the Motion Picture Competitiveness Program is funded through $3.5 million in annual tax credits and that, since 2007, the program has funded 126 projects. It compares film incentive programs, listing California at $330 million, Oregon at $14 million and Montana at $10 million. The closing section lists strategies for expanding the film ecosystem and the creative sector, including increasing the film incentive and building the regional workforce for the creative economy.

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Issuer: Congressional materials
Document type: 2021 03 25 A28816 D233836 Wa Department Of Commerce Film And The Creative Economy In W
Date: 2021-03-25
Case: 2021 03 25 A28816 D233836 Wa Department Of Commerce Film And The Creative Economy In W

Cite this document

“Film and the Creative Economy in Washington.” Original at app.leg.wa.gov, dated 2021-03-25. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-03-25-2021-03-25-a28816-d233836-wa-department-of-commerce-film-and-the-creative-economy-in-w/, SHA-256 8f722cc957c55af302621614656dc466f2060b35386c24e39e4bc565296d93c9.

Full text

Film and the
Creative Economy
in Washington
A presentation to the Senate Committee on
Business, Financial Services, and Trade
Lisa Brown
DIRECTOR


MARCH 25, 2021
We strengthen communities


   HOUSING                     INFRASTRUCTURE      BUSINESS         ENERGY
 HOMELESSNESS                                     ASSISTANCE




     PLANNING             COMMUNITY FACILITIES   CRIME VICTIMS &   COMMUNITY
                                                  PUBLIC SAFETY     SERVICES


WASHINGTON STATE DEPARTMENT OF COMMERCE                                        2
Creative Economy
Definition of “creative economy” is
evolving
• No single definition or set of NAICS codes

• The line between arts/entertainment and
  business/manufacturing is becoming blurred

• Gig workers predominate in the creative
  economy with relatively higher makeup of
  young and BIPOC workers

• The creative sector makes traditional sectors
  more competitive

• The creative sector makes communities more
  attractive in both urban and rural areas



WASHINGTON STATE DEPARTMENT OF COMMERCE           3
WASHINGTON STATE DEPARTMENT OF COMMERCE   4
The entertainment industry has been hit hard
by pandemic




WASHINGTON STATE DEPARTMENT OF COMMERCE        5
Motion Picture Competitiveness Program
The MPCP is funded through $3.5 million in annual tax credits
     • Program managed by WA Filmworks
     • Funds used for films, episodic series, and commercials
     • Film industry is a microcosm of the creative economy

Since 2007, the program has
     • Funded 126 projects
     • Generated over $140 million in qualified expenses
     • Created over 24,200 jobs for in-state cast and crew

Only film incentive program in the country to require employers to provide health and
retirement benefits
     • Important program for gig workers (65% of creative economy)

Episodic series provide best and most consistent work for gig workers
     • From 2015-19, Washington produced on-going three episodic series that averaged 2,214 jobs
       annually


WASHINGTON STATE DEPARTMENT OF COMMERCE                                                            6
Three Busy Debras
                                          • All women leadership team of executive
                                            producers, writers, directors and stars

                                          • Filmed in Puget Sound

                                          • Created 60 jobs per episode

                                          • Averaged 543K views per episode

                                          • Renewed for 2nd season

                                          • Average salary $48K/hr

WASHINGTON STATE DEPARTMENT OF COMMERCE                                               7
Z Nation
                                          • Ran for five seasons

                                          • Filmed in Spokane area

                                          • 3 of 5 lead actors from WA state

                                          • Spent money in 575 unique
                                            businesses

                                          • Created 138 jobs per episode

                                          • Season 5 average salary $34/hour

WASHINGTON STATE DEPARTMENT OF COMMERCE                                        8
The entertainment landscape is changing
Global video streaming market expect to reach $102
billion by 2023
     • Up from $40 billion in 2018
     • Tied to growth of smart phones


Video streaming subscriptions growing rapidly
     • 61% households subscribe to 2 or more services
     • 45% 3 or more
     • 31% four or more


WASHINGTON STATE DEPARTMENT OF COMMERCE                 9
A national and regional perspective
At $3.5 million per year, Washington's film incentive program is
the third smallest in the country

Washington’s program significantly trails our neighbors:
     • California - $330 million
     • Oregon - $14 million
     • Montana - $10 million, and
     • British Columbia – No cap, annual expenditures are similar to
       California



WASHINGTON STATE DEPARTMENT OF COMMERCE                                10
WASHINGTON STATE DEPARTMENT OF COMMERCE   11
Incentives drive broader state film ecosystem
Oregon
     • 4 crews
     • 2 sound stages, 20 post production companies
     • Bill introduced to raise tax credit to $20 million per year

Montana
     • 4 crews
     • 1 sound studio, 29 post production companies

Washington
     • 2.5 Crews
     • 0 soundstages, 13 post-production companies

WASHINGTON STATE DEPARTMENT OF COMMERCE                              12
Strategies for expanding the film ecosystem
and the creative sector
Increase film incentive
     • Create year-round demand for production and post-production facilities
     • Expand programs to develop and advance a BIPOC talent pipeline

Incentivize targeted regional investments
     • Provide tools to attract capital (e.g., multi-set sound stages, regional cultural
       and creative infrastructure)
     • Invest in and build on Arts WA creative districts
     • Establish a creative economy sector lead

Build regional workforce for creative economy
     • Leverage work of Guided Pathways and Career Connect WA to build creative
       pipeline, especially for rural and underserved communities


WASHINGTON STATE DEPARTMENT OF COMMERCE                                                    13
                                   www.commerce.wa.gov




Thank you
Lisa Brown
DIRECTOR, DEPARTMENT OF COMMERCE

Lisa.Brown@commerce.wa.gov

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