500:(LAEDC) released a report commissioned by the California Film Commission on the economic impact of runaway productions. The report compared motion picture employment numbers gathered from the MPAA and the United States Census for the same year, 2002. The data from the MPAA and the Census was divided into two categories: (1) overall motion picture employment in the United States and; (2) the amount of motion picture employment in California—how much California captures of the total U.S. figure. In 2002, the Census reported that 153,000 people worked in the motion picture industry in the United States and, of that amount, 88,500 worked in California. The MPAA data for 2002 reported 353,076 workers in the motion picture industry in the United States, with 245,900 of those jobs in California.
484:
total employment to well over 450,000." The MPAA claimed that entertainment production in
California during 1996 generated $ 27.5 billion in economic activity for the state. The astonishing economic growth from 1992 to 1996, according to the MPAA, exploded for two reasons: (1) as the growth of multiplex theaters and cable television rose, it created a higher general demand for more entertainment media productions; and (2) "the possibility that this new production activity would occur outside California, or in other countries, did not materialize."
341:(DGA) defined two classes of runaway productions. "Creative runaways" are film and television projects that are produced, in part or in whole, outside the United States based on requirements of the script, setting, or due to preferences of the actors or director. Alternatively, "economic runaways" are productions made in other countries to "reduce costs." This type of production typically involves films that are set (written to be shot) in the United States but which instead have been
353:
349:
Artificial economic runaways are films shot abroad or in another domestic locale or jurisdiction because of artificial, or legislatively created, incentives designed to lure productions. Natural economic runaways are films that shoot in a location to take advantage of natural economic occurring phenomenon—like cheap labor—that lower production costs. Artistic runaways are films that shoot abroad to artistically service the story – a film about Paris that shoots in Paris.
66:
566:"As provided under USTR regulations, the petition was reviewed by an interagency committee of trade and economic experts. Based on a thorough review of the economic data, other facts, and legal arguments set out in the petition, the interagency committee unanimously recommended that the USTR not accept the petition because a dispute based on the information and arguments set out in the petition would not be effective in addressing the Canadian subsidies."
488:
283,700 (135,200 in P&S); in 1997, total employment was 323,000 (159,600 P&S); in 2000, total employment was 351,600 (182,100 P&S) and; in 2004, total employment was 367,900 (198,300 P&S). Hence, in 1997, according to the MPAA 2004 report, total U.S. motion picture employment of 323,000 represents a huge discrepancy from the MPAA's earlier claim that, in 1996, the industry employed over 450,000 workers in
562:
2007, the FTAC filed a
Section 301 complaint with the United States Trade Representative (USTR). In the petition, the FTAC argued subsidies offered by Canada to lure production and filming of U.S.-produced television shows and motion pictures were inconsistent with Canada's obligations under the WTO. Six weeks later, October 19, 2007, the USTR rejected FTAC's petition. In a press release, the USTR's office stated:
533:"The Vancouver Sun's Michael McCullough points out that California not only has the world's highest production costs it also has no tax credits. How do they do it? That's the question BC's film industry should be asking, rather than looking to taxpayers to buck up ... The tit for tat tax credit game is one with only one loser, the taxpayer. There will always be other jurisdictions that will out-subsidize BC.
105:
153:
25:
558:) and others, who have been lobbying state and federal governments to introduce American legislation and counter-incentive programs. Several studies have concluded that foreign government subsidies for film and television production put American film industry workers and companies at an extreme disadvantage.
511:"Who is representing the interests of taxpayers here?" asked CTF Saskatchewan director David MacLean. "The film industry is playing the Saskatchewan government like a worn-out movie script, drawing them into bidding war with other provinces. It's a race to the bottom where nobody wins except film producers."
529:
Several
Canadian companies are also pulling their support for Canadian Television Fund (CTF) because, "(It) was never intended as a permanent source of funding" to subsidize broadcasters and programmers. One Canadian company stated that, "Our understanding was that after the initial five-year period,
313:
Los
Angeles has traditionally played a large role in the history of the film industry, both in the US and internationally. The first American film production companies emerged in New Jersey and New York. The relatively poor quality of early recording media and lighting systems meant that films had to
586:
contained provisions allowing U.S. producers of films with budgets under $ 15 million ($ 20 million if shot in a low-income neighborhood) to immediately write off their costs in a single year (if 75% of their principal costs are incurred via shooting in the U.S.) It also allows producers to be taxed
561:
FTAC believes that foreign government subsidies such as those Canada uses to support its film industry labor are in violation of the WTO rules restricting or prohibiting the use of government subsidies to prop up previously undeveloped industries (such as the
Canadian film industry). On September 4,
483:
In 1992, the MPAA claimed 164,000 Californians were directly employed in entertainment production, rising to 226,000 in 1996. Furthermore, in 1996, the estimated number of
California jobs indirectly generated by the entertainment industry ranged from 233,000 to 253,100, which brought the "industry's
300:
offered to
American companies ultimately reducing the cost of making the film. According to the CEIDR report, "The analysis reveals that, while there are certainly general economic factors at play, such as relative labor and exchange rates, the data over the past several years strongly suggests that
525:
While film and television employment attributed to foreign location spending and actual spending levels by such productions increased in 2008, the state film incentives enacted in U.S. states showed clear increases in the number of productions shooting in the respective enacting U.S. jurisdiction.
521:
According to a study by the
Canadian government, productions are beginning to "run away" from Canada as well. Productions are now going to countries that have introduced competing and/or counter-incentives and/or subsidies. Many productions are starting to return to the United States due to recent
295:
In a 2005 production report by the Center for
Entertainment Industry Data and Research (CEIDR), the trend of runaway productions is more frequently linked to American films and television being lured away from U.S. locations to out-of-country locations. A large reason for these productions leaving
304:
The report further states that "the connection between the advent of
Canadian Production subsidies in late 1998 and the dramatic increase in production that occurred in the following year (as reflected by the 144% increase in dollar volume for the 2000 release year films) appears unassailable as
487:
In 2004, the MPAA reported employment numbers for the entire United States. The employment numbers were broken into three categories: production and services (P&S), theaters and video tape rental, and other. In 1995, the total number of Americans employed in the motion picture industry was
348:
Since economic runaways can be caused by a variety of factors, more recent scholarly research has further refined the definition. In general, there are three different categories of runaway productions (1) artificial economic runaways,(2) natural economic runaways, and (3) artistic runaways.
317:
During the early 1910s, Los Angeles was an advantageous location for filmmakers. It had clear, dry weather that "permitted outdoor filming for much of the year. In addition, southern California offered a variety of landscapes, including ocean, desert, mountain, forest, and hillside."
459:
A DGA-funded study confirmed that the Canadian government has engaged in a comprehensive and aggressive, long-term strategic campaign to lure U.S. productions to Canada. The report estimates that runaway productions cost the United States over 50,000 jobs and at least
386:
was the only way for American producers to indirectly recover the box-office profits from local cinemas exhibiting American films. Cheap labor, increasingly skilled crews, and varied landscapes also contributed to bring to Spanish locations super-productions such as
475:(CTF), a conservative tax watchdog. The CTF released a report saying that from 1982 to 1997, the Canadian federal government handed out $ 11 billion in 32,969 grants and loans to the provinces earmarked as business subsidies or directly to corporations.
449:, "Runaway film production' has affected thousands of (U.S.) workers in industries ranging from computer graphic to construction workers and caterers. These losses threaten to disrupt important parts of a vital American industry."
1106:
314:
be shot in sunlit glass studios. In turn, the weather typical of the northeast states frequently hampered production. Eventually, a trend developed towards using the west and midwest US as ideal locations for shooting.
590:
Local and state governments have also implemented counter-incentive programs in an effort to encourage domestic film productions to remain in the United States, and the federal government has attempted to rein in
1096:
492:
alone. Adding to the confusion, The Commerce Report—which used the same BLS data cited by the MPAA—claimed 236,152 workers were employed nationwide in motion picture production and allied services in 1997.
545:
The movement of industry jobs to other jurisdictions has led to the formation of non-profit U.S. industry groups, such as the Film and Television Action Committee (FTAC) as well as other groups such as the
537:
offers a straight 20% subsidy for production costs, is that the next industry demand? It is not the job of the government to keep up with incentives but the industry's role to remain competitive."
301:
proliferation of production subsidies around the globe has been one of the most significant factors affecting the choice of production venues for a significant volume of production."
981:
329:
surrounding it) arises from an implicit interpretation of Hollywood as "the authentic home to global film production, and all others as its inauthentic, even criminal, harborers."
1156:
418:
According to CEIDR, Canada receives 90% of U.S. runaway productions, and offers the bulk of the government subsidies. A subsidy is defined as financial contributions or
958:
Reprinted in University of Pennsylvania Journal of Labor and Employment Law: "Through the Looking Glass: Runaway Production and Hollywood Economics" by Adrian McDonald
624:
934:
Eye Weekly – 11/11/99 – "The great Canadian pig-out: Some of Canada's biggest and most profitable corporations are also our biggest welfare bums" by Bruce Livesey
881:
305:
there were no appreciable changes in exchange rates or labor rates to justify this dramatic shift from one year to the next, other than the subsidy programs".
587:
at a capital gains rate of 15% (rather than at the higher 35% personal income tax rate). Previously producers had to amortize those costs over several years.
497:
1045:
805:
Adrian McDonald, Down the Rabbit Hole: The Madness of State Film Incentives as a "Solution" to Runaway Production, 14 U. PA. J. BUS. L. 85, 86 (2011).
703:
1058:
415:(1970) also benefited of Spanish soldiers playing Americans and Germans in battle scenes and WWII equipment made available by the Spanish army.
427:
1146:
989:
1136:
443:
38:
1112:
2004 – Governor Schwarzenegger Joins with Other Big State Governors to Push for Federal Incentives Package to fight runaway production
583:
503:
The MPAA, in 1996, claimed that the film industry employed 750,000 Americans, a number that remained on the MPAA's Web Site in 2008.
115:
827:
783:
686:
199:
52:
345:
to other countries such as Canada, Australia, Fiji, Germany, Hungary, Ireland, New Zealand, South Africa, or the United Kingdom.
842:
389:
1121:
909:
273:
that are intended for initial release/exhibition or television broadcast in the U.S., but are actually filmed outside of the
885:
472:
174:
75:
619:
614:
363:
262:
1023:
456:
trend which began in the mid to late 1990s, and which coincided with increased Canadian government subsidy programs.
547:
338:
515:
395:
375:
1122:
Los Angeles Times January 22, 2007 "L.A. airports fly high with film shoots" By Tony Barboza, Times Staff Writer
1141:
471:
to the business sector in combined Canadian federal and provincial subsidies and tax breaks, according to the
530:
the fund would be self-sustaining and self-financing from a return on investment in successful productions."
169:
127:
44:
1116:
576:
439:
281:
250:
166:
This has been tagged as inaccurate due to out of date information since 2008. This needs expert attention.
969:
Canadian Taxpayers Federation "Corporate welfare too much for Saskatchewan taxpayers" – November 03, 2005
707:
270:
806:
1101:
1062:
604:
518:
is quoted as saying, "Everybody can compete with tax credits now ... It's absolutely frightening."
855:
555:
1151:
679:
Chasing the Runaways: Foreign Film Production and Film Studio Development in Australia 1988-2002
933:
1117:
Variety 7/31/2006, 2006(subscription) "Runaway drain? Study: Pic biz in big production pickle"
823:
779:
682:
514:
When faced with the prospect of a worldwide subsidy war, Ron Haney, executive director of the
468:
401:
379:
843:
https://web.archive.org/web/20061003224959/http://www.bcstats.gov.bc.ca/pubs/exp/exp0112.pdf
773:
609:
409:
established himself in Spain to link American producers and Spanish talent and authorities.
221:
1086:
728:
The Center for Entertainment Industry Data and Research – Year 2005 Production Report, p 1.
406:
371:
913:
82:
Please help update this article to reflect recent events or newly available information.
1107:
Reuters – Canada "Court orders arbitration in Canadian actors' strike" Wed Jan 31, 2007
1091:
383:
1010:
1130:
1034:
968:
752:
The Center for Entertainment Industry Data and Research – Year 2005 Production Report
595:
with legislation to prevent what legislators describe as unfair foreign competition.
446:
411:
358:
236:
579:
have attempted to counter the runaway production situation with counter-incentives.
1111:
592:
453:
342:
277:
274:
1097:
The Rocord.com – Insider – "Another Twist in ACTRA Strike Drama" (Feb 2, 2007)
629:
489:
289:
285:
266:
246:
1102:
2003 – Congressmen Dreier, Berman Re-Introduce Runaway Production Legislation
1092:"The New Rules Project" By Simona Fuma Shapiro Fall 2000 "The Culture Thief"
957:
551:
534:
326:
322:
297:
126:
by adding information on neglected viewpoints, or discuss the issue on the
1087:
The Creative Coalition – member's advocacy work against runaway production
653:
426:
that is otherwise due is foregone or not collected", according to GATT –
751:
727:
423:
419:
1059:"Bipartisan Bill Aims to Keep Movie and TV Production Jobs in the USA"
822:(in European Spanish). Madrid: Alianza Editorial. pp. 328–331.
807:
https://www.law.upenn.edu/live/files/156-mcdonald14upajbusl852011pdf
352:
351:
856:"Impact of the Migration of U.S. Film and Television Production"
1011:"What size air compressor for framing nailer? - HouseAffection"
775:
A History of Hollywood's Outsourcing Debate: Runaway Production
461:
146:
98:
59:
18:
16:
American film or television production shot outside Hollywood
659:. Directors Guild of America/Screen Actors Guild. p. 29
1024:"Shaw could kill TV fund" by Antonia Zerbisias Jan 23, 2007
910:"Total Economic Impact Of U.S. Economic Runaway Production"
876:
874:
872:
479:
Measuring employment in the U.S. motion picture industry
123:
882:"The Decline of Foreign Location Production in Canada"
452:
The U.S. film industry has voiced concerns about this
434:
Effect of Canadian subsidies on employment in the US
325:
perspective, the term "runaway production" (and the
242:
232:
227:
217:
912:. Directors Guild of America. 2000. Archived from
884:. Government of Canada. 2005-05-24. Archived from
647:
645:
78:may be compromised due to out-of-date information
778:. Lanham, Maryland: Lexington Books. p. 4.
625:Movie production incentives in the United States
1061:. U.S. House of Representatives. Archived from
654:"U.S. Runaway Film and Television Study Report"
467:At least $ 13 billion is doled out annually in
522:legislation to counteract runaway production.
541:Other U.S. attempts to end runaway production
8:
858:. United States Department of Commerce. 2001
498:Los Angeles Economic Development Corporation
321:Camille Johnson-Yale has argued that from a
212:
1157:Film genres particular to the United States
747:
745:
743:
741:
739:
737:
735:
571:Countervailing efforts in the United States
53:Learn how and when to remove these messages
704:"Toronto TV production is fading to black"
464:10 billion in production monies annually.
200:Learn how and when to remove this message
953:
951:
949:
947:
945:
943:
941:
820:El cine norteamericano en 120 pelĂculas
641:
284:), whether in another country, another
1035:"Film Credit Follies" January 18, 2005
904:
902:
706:. Media Monitor Digest. Archived from
428:General Agreement on Tariffs and Trade
211:
177:may be able to help recruit an expert.
162:needs attention from an expert in Film
980:Verrier, Richard (October 23, 2005).
818:Torres, Augusto M. (1992). "Patton".
575:In recent years, some members of the
7:
1057:Berman, Howard (February 12, 2003).
681:. Strawberry Hills: Currency Press.
356:A mass scene during the shooting of
370:Motives may be mixed: for example,
584:American Jobs Creation Act of 2004
333:"Creative" and "economic" runaways
14:
982:"Canada rolls credits on a slump"
34:This article has multiple issues.
702:Felstead, Debra (July 6, 2003).
151:
103:
64:
23:
261:is a term used by the American
42:or discuss these issues on the
772:Johnson-Yale, Camille (2017).
1:
473:Canadian Taxpayers Federation
337:A report commissioned by the
620:List of movie-related topics
1147:Cinema of the United States
615:Cinema of the United States
164:. The specific problem is:
1173:
1137:Film and video terminology
845:Gatt definition of subsidy
548:Directors Guild of America
339:Directors Guild of America
516:Directors Guild of Canada
438:According to a 2001 U.S.
396:The Pride and the Passion
376:foreign exchange controls
118:toward certain viewpoints
652:Monitor Company (1999).
288:, or in another part of
577:United States Congress
568:
440:Department of Commerce
367:
271:television productions
251:television productions
564:
355:
265:industry to describe
605:Branch plant economy
554:(which absorbed the
496:In August 2005, the
362:in the 1950s at the
1013:. 11 November 2019.
677:Herd, Nick (2004).
556:Screen Actors Guild
507:Competing subsidies
390:Alexander the Great
214:
124:improve the article
762:Thompson, Bordwell
710:on October 4, 2006
444:Commerce Secretary
422:where "government
368:
364:Castle of Belmonte
259:Runaway production
213:Runaway production
986:Los Angeles Times
469:corporate welfare
405:(1959). Producer
402:Solomon and Sheba
380:Spanish Civil War
256:
255:
210:
209:
202:
192:
191:
145:
144:
97:
96:
57:
1164:
1074:
1073:
1071:
1070:
1054:
1048:
1046:October 19, 2007
1043:
1037:
1032:
1026:
1021:
1015:
1014:
1007:
1001:
1000:
998:
997:
988:. Archived from
977:
971:
966:
960:
955:
936:
931:
925:
924:
922:
921:
906:
897:
896:
894:
893:
878:
867:
866:
864:
863:
852:
846:
840:
834:
833:
815:
809:
803:
797:
796:
794:
792:
769:
763:
760:
754:
749:
730:
725:
719:
718:
716:
715:
699:
693:
692:
674:
668:
667:
665:
664:
658:
649:
610:Cinema of Canada
384:Filming in Spain
280:area (including
215:
205:
198:
187:
184:
178:
175:WikiProject Film
155:
154:
147:
140:
137:
131:
107:
106:
99:
92:
89:
83:
76:factual accuracy
68:
67:
60:
49:
27:
26:
19:
1172:
1171:
1167:
1166:
1165:
1163:
1162:
1161:
1142:Film production
1127:
1126:
1083:
1078:
1077:
1068:
1066:
1056:
1055:
1051:
1044:
1040:
1033:
1029:
1022:
1018:
1009:
1008:
1004:
995:
993:
992:on May 23, 2006
979:
978:
974:
967:
963:
956:
939:
932:
928:
919:
917:
908:
907:
900:
891:
889:
880:
879:
870:
861:
859:
854:
853:
849:
841:
837:
830:
817:
816:
812:
804:
800:
790:
788:
786:
771:
770:
766:
761:
757:
750:
733:
726:
722:
713:
711:
701:
700:
696:
689:
676:
675:
671:
662:
660:
656:
651:
650:
643:
638:
601:
573:
543:
509:
481:
436:
407:Samuel Bronston
382:to the 1970s.
372:Francoist Spain
335:
311:
206:
195:
194:
193:
188:
182:
179:
173:
156:
152:
141:
135:
132:
121:
108:
104:
93:
87:
84:
81:
73:This article's
69:
65:
28:
24:
17:
12:
11:
5:
1170:
1168:
1160:
1159:
1154:
1149:
1144:
1139:
1129:
1128:
1125:
1124:
1119:
1114:
1109:
1104:
1099:
1094:
1089:
1082:
1081:External links
1079:
1076:
1075:
1049:
1038:
1027:
1016:
1002:
972:
961:
937:
926:
898:
868:
847:
835:
828:
810:
798:
784:
764:
755:
731:
720:
694:
687:
669:
640:
639:
637:
634:
633:
632:
627:
622:
617:
612:
607:
600:
597:
572:
569:
542:
539:
508:
505:
480:
477:
435:
432:
334:
331:
310:
307:
254:
253:
244:
240:
239:
234:
230:
229:
225:
224:
219:
208:
207:
190:
189:
159:
157:
150:
143:
142:
111:
109:
102:
95:
94:
72:
70:
63:
58:
32:
31:
29:
22:
15:
13:
10:
9:
6:
4:
3:
2:
1169:
1158:
1155:
1153:
1150:
1148:
1145:
1143:
1140:
1138:
1135:
1134:
1132:
1123:
1120:
1118:
1115:
1113:
1110:
1108:
1105:
1103:
1100:
1098:
1095:
1093:
1090:
1088:
1085:
1084:
1080:
1065:on 2007-01-07
1064:
1060:
1053:
1050:
1047:
1042:
1039:
1036:
1031:
1028:
1025:
1020:
1017:
1012:
1006:
1003:
991:
987:
983:
976:
973:
970:
965:
962:
959:
954:
952:
950:
948:
946:
944:
942:
938:
935:
930:
927:
916:on 2007-09-28
915:
911:
905:
903:
899:
888:on 2007-05-14
887:
883:
877:
875:
873:
869:
857:
851:
848:
844:
839:
836:
831:
829:84-206-0575-1
825:
821:
814:
811:
808:
802:
799:
787:
785:9781498532549
781:
777:
776:
768:
765:
759:
756:
753:
748:
746:
744:
742:
740:
738:
736:
732:
729:
724:
721:
709:
705:
698:
695:
690:
688:0-9581213-3-8
684:
680:
673:
670:
655:
648:
646:
642:
635:
631:
628:
626:
623:
621:
618:
616:
613:
611:
608:
606:
603:
602:
598:
596:
594:
588:
585:
580:
578:
570:
567:
563:
559:
557:
553:
549:
540:
538:
536:
531:
527:
523:
519:
517:
512:
506:
504:
501:
499:
494:
491:
485:
478:
476:
474:
470:
465:
463:
457:
455:
450:
448:
447:Norman Mineta
445:
441:
433:
431:
429:
425:
421:
416:
414:
413:
408:
404:
403:
398:
397:
392:
391:
385:
381:
377:
373:
365:
361:
360:
354:
350:
346:
344:
340:
332:
330:
328:
324:
319:
315:
308:
306:
302:
299:
293:
291:
287:
283:
279:
276:
272:
268:
264:
260:
252:
248:
245:
241:
238:
237:United States
235:
231:
226:
223:
220:
216:
204:
201:
186:
176:
171:
167:
163:
160:This article
158:
149:
148:
139:
129:
125:
119:
117:
112:This article
110:
101:
100:
91:
79:
77:
71:
62:
61:
56:
54:
47:
46:
41:
40:
35:
30:
21:
20:
1067:. Retrieved
1063:the original
1052:
1041:
1030:
1019:
1005:
994:. Retrieved
990:the original
985:
975:
964:
929:
918:. Retrieved
914:the original
890:. Retrieved
886:the original
860:. Retrieved
850:
838:
819:
813:
801:
789:. Retrieved
774:
767:
758:
723:
712:. Retrieved
708:the original
697:
678:
672:
661:. Retrieved
589:
581:
574:
565:
560:
544:
532:
528:
524:
520:
513:
510:
502:
495:
486:
482:
466:
458:
451:
437:
417:
410:
400:
394:
388:
369:
357:
347:
336:
320:
316:
312:
303:
296:are foreign
294:
258:
257:
196:
180:
172:for details.
165:
161:
133:
113:
85:
74:
50:
43:
37:
36:Please help
33:
593:outsourcing
454:outsourcing
278:Los Angeles
218:Language(s)
1131:Categories
1069:2007-01-27
996:2007-01-25
920:2007-01-25
892:2007-01-25
862:2007-01-25
791:28 January
714:2007-01-27
663:2007-01-25
636:References
630:Offshoring
490:California
442:report by
343:outsourced
290:California
286:U.S. state
267:filmmaking
247:filmmaking
183:March 2022
116:unbalanced
39:improve it
1152:Subsidies
552:SAG-AFTRA
535:Louisiana
420:kickbacks
378:from the
327:discourse
323:semantics
309:Hollywood
298:subsidies
282:Hollywood
275:immediate
263:Hollywood
233:Word/name
170:talk page
136:July 2009
128:talk page
45:talk page
599:See also
399:(1957),
393:(1956),
168:See the
88:May 2008
550:(DGA),
424:revenue
366:, Spain
243:Meaning
222:English
122:Please
114:may be
826:
782:
685:
412:Patton
359:El Cid
228:Origin
657:(PDF)
374:kept
824:ISBN
793:2019
780:ISBN
683:ISBN
582:The
462:US$
269:and
249:and
1133::
984:.
940:^
901:^
871:^
734:^
644:^
430:.
292:.
48:.
1072:.
999:.
923:.
895:.
865:.
832:.
795:.
717:.
691:.
666:.
203:)
197:(
185:)
181:(
138:)
134:(
130:.
120:.
90:)
86:(
80:.
55:)
51:(
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
