Ripple Effect of Lost Revenues in Southern California Could Cost More Than 9,280 Jobs and $1.5 Billion in Economic Output, Along With Reduced Contributions to Guild and Union Pension Plans
Los Angeles – The Los Angeles County Economic Development Corporation (LAEDC) has unveiled a new economic study entitled “The Economic Implications of Low Cost DVD Rentals” which illustrates the negative impact that low cost, new-release DVD rentals could have on the Entertainment industry and the Southern California economy.
The LAEDC study, which utilizes the Redbox model of $1 DVD rentals available at the street date, shows the ripple effect of $1 billion in lost revenues to the domestic home video industry in the Southern California region – the entertainment capital of the world – would lead to an additional $500 million in reduced economic activity. The loss of motion picture production in and around Los Angeles would result in the loss of more than 9,280 jobs with annual earnings of almost $395 million, according to the LAEDC’s study.
“The economics of the motion picture industry are based on exclusive release windows which allow price differentiation - that is - some earlier transactions take place at higher price points," said Gregory Freeman, vice president of Consulting and Economic Policy for the LAEDC. "Redbox, or any other distributor that weakens the release window model, could reduce overall industry revenues. Lower revenues will likely lead to lower production activity, hurting the Southern California economy.”
Of the 9,280 jobs, more than half of the losses will occur in the Information Sector, the LAEDC found. In addition to motion picture and sound recording industries, this sector includes publishing industries, radio and television broadcasting, telecommunications industries and Internet service providers. Other industries impacted will be retail trade, accommodation and food services, health care and social assistance, professional, scientific and technical services, and manufacturing, among others.
A packed house at the "How to do social media" ICG Local 600 - EPPS workshop.
Social Media Needs To Engage Your Audiences Say EPPS Panelists
By George S. Mc Quade III
West Coast Bureau Chief
If you want to do social media you need to engage your target audience and treat them intelligently. That was the overriding message at a sold-out Entertainment Publicists Professional Society (EPPS) crowd at a media workshop on “How To Do Social Media.” It was sponsored by the International Cinematographers Union Local 600, Hollywood, CA.
“It is possible to measure ROI,” but according to Panelist Sally Falkow, Expansion Plus, “Campaigns take four to six weeks of research and strategy and can cost from several thousand dollars to millions. “We don’t go by retainer, but more by the project, because it really depends upon how much time is involved and how long your project runs,” she said.
“Movie fans and visitors love behind the scenes marketing of movies,” said Vice President Wayne Bennett of MOVIESET (www.movieset.com), which is based in Vancouver, B.C. The free membership site helps market movies via images, on-the-set interviews and constant blogging. Bennet, a 20 year TV and movie production veteran, uses his social media skills to assist television production and publicity departments.
“You have to type what’s going on behind the camera for fans all over the world,” Bennett explained. “It might be the director of photography on how he lit the shot, or in the case of Peter Jackson in King Kong, before Facebook, YouTube and Twitter; he was literally posting photos of prop guys, costume fittings with actors, on the scene location scouts activities and video blogs. Jackson built this buzz that topped a million fans, who were already engaged in the process and the movie by the time he finished it for distribution.”
The panel also briefly talked about Widgets, which can be placed on a site or blog, allowing interaction with the visitor without leaving the site. For example: the Red Cross might have a widget on a blog, where you can donate directly to Haiti earthquake victims.
Panelists also recommended the funneling all your social media sites such as Facebook, Myspace, LinkedIn, Twitter on one portal such as www.tweetdeck.com, where you can organize your feeds and tweets.
“Nonprofit organizations do not tell there story very well,” said President Larry Eason, DotOrgpower, Los Angeles. The digital strategy and communications firm helps dot orgs harness the web and new media to achieve their goals. He works with cause leaders to expand their sense of what is possible Online. He claims to be an evangelist for the power of Online story-telling to move the public, donors and influentials. “You need to treat your audiences intelligently when telling your stories,” explained Eason.
Eason pioneered the use of new media for the Public Interest Research Groups (PIRGs) starting a first-of-its-kind in-house media center, which was acquired by Virilion where he worked with cause and corporate clients such as eBay and Georgetown University.
“You need to target your community groups, mobile interaction, action platforms, and set your goal,” said Mac McLean, Click Communications, North Hollywood, CA. “Before forming Click Communications in May, 2007, McLean handled theatrical promotions, worked at a national advertising agency and did publicity for major studios.
Some panelists noted that 60 percent of the marketing campaigns are spent on social media strategy versus 40 percent on PR and Marketing. “It is one more layer of client management, but for a restaurant the goal is to get people in the door,” said Caroline Rustigian Bruderer, CEO of K-LINE 7 Co., Orange County.
While everyone thought the best way to market your film is social networking and the best marketing tool is Facebook with more than 400 million users other tactics surface.
“Every movie or TV project has a core audience, and the Internet is the most strategic way to get to those people,” explained MOVIESET’S Bennett. “This allows you to do the EPK and other advertising much later. The Concept is the production, and the sooner you engage your audience the sooner they are going to grab onto it, and follow the different phases to the point where you get to your last news release or airing. There will be much more information that surfaces to the top of Google than there would be in putting out a release over six weeks.”
Entertainment companies and filmmakers are leveraging the power of social media by marketing their films to international audiences and building loyal audiences and communities around their work. Another tactic mentioned are RSS feeds, which in layman’s terms stands for real simple syndication or officially “rich site summary for delivering regularly changing web content. All agreed that to increase web traffic PR pros need an RSS feed on their client's website or blog to whoever subscribes or wants the content.
LAEDC Forecast Report Says U.S., California and Southern California face a measured economic recovery, with stronger growth in 2011
Entertainment, international trade and tourism cited as regional industry leaders, with an economic boost from major infrastructure projects and a modest rebound in residential real estate
Los Angeles— A measured economic recovery is underway in the nation, the state and Southern California, according to the 2010-2011“Economic Forecast & Industry Outlook” report released today by the KyserCenter for Economic Research at the Los Angeles County Economic Development Corporation (LAEDC).
In California, three sectors will see employment growth during 2010: information, private education and health services. Like the national experience, unemployment rates in the state will remain high with the LAEDC forecasting a 12.3 percent average rate in 2010, easing down to 11.9 percent in 2011.
“We project that the U.S. economy will grow by 2.6 percent in 2010 and by 3.1 percent in 2011, after plunging by 2.4 percent during 2009,” said Nancy D. Sidhu, Ph.D., the LAEDC’s chief economist. “However, unemployment rates in the U.S. will remain uncomfortably high, averaging 9.9 percent in 2010 and 9.4 percent in 2011.”
Sidhu observed that consumer spending holds one of the keys to the economic recovery, with inflation-adjusted gains of 1.9 percent in 2010 and 2.7 percent in 2011 forecast, after falling by 0.6 percent in 2009.
“California’s economy is also on the recovery track, but the state will still lose 121,800 jobs in 2010,” said Sidhu. “However, this will be a huge improvement from the 668,200 jobs lost in 2009.” California’s housing industry will see a modest recovery in 2010, according to Sidhu. For the full story and link to the forecast visit: http://tinyurl.com/yf85d5m
For images and media interviews call Aida Mayo or George Mc Quade, MAYO Communications, 818-340-5300 or Cell: 818-618-9229.
The Golden State To Get More Gold in Stimulus Funds Forum Reveals
Executive Director Josie Marquez, LA County WIB speaks at Economic Recovery Forum
By George S. Mc Quade III
"We spent $18 billion last year in California," Jenifer Grutzius, chief of staff, Governor's California Recovery Task Force told a large crowd recently at the 2010 Economy Recovery Forum at Woodbury University. "We have to use separate computers to track the federal stimulus money coming to California, and this year we plan to spend $60 billion dollars, this despite the golden state's $22 billion dollar state deficit," Grutzius said. "We have had to cut back on staff, which is why there only one - me - from the state Recovery Task Force. There is stimulus money coming, and small and large business should take advantage of that."
Jennifer Grutzius and Michael Landver,
CDC, Sun Valley.
Grutzius advises the Administration and Task Force member on policy opportunities within the American Reinvestment adn Recovery Act of 2009. Prior to joining the Task Force, she was the assistant secretary for Economic Development at the California Businss, Transportatoin and HOusing Agency, and Grutzius previously served as an assistant Cabinet secretaryu in the Governor's office.
Josie Marquez, LA County WIB
and Paul Audley, FilmLA, Inc
"We also have funds to help the economy," said Josie Marque, executive director, Los Angeles County Workforce Investment Board (WIB). "We plan to spend $60 million in 2010, and I am resonsible for the administration of more than $32 million in Workforce Investment Act formula fundss and an additional $34 million in AMerican REcovery and Reinvestment funds. Marquez is an active board member to the National Workforce Association and a is a member of the National Association of Workforce Boards and California Workforce Association. She is a 13 year veteran Los Angeles County employee. Other speakers included US Small Business Administration District Director Alberto G. Alverado, Los Angeles Office. "I brought a half dozen representatives, and yes there is money for small business and loans, so now is the time to expand and hire more employees," he said. "The good news is the Box Office had a record year," said Paul Audley, president, FilmLA, Inc., "But the bad news for Conan O'Brien is actually good news for TV prodouction business in Hollywood, because for every one hour of prime time drama shows shot in LA it spells 15o jobs and $15 million dollars a week."
Hollywood Rebounds
On-location film, television and commercial production activities in Los Angeles have seen a 19 percent drop as recession, runaway production and lingering effect of contract dispute between management and actors took their toll on local productions. Audley told the crowd, "Although 2009 has been a bumper year at the box office, the city still saw the steepest year-over-year decline since 1993 when the statistics became available. The production has been a major employer and key economic engine of the city, home to Hollywood and the related entertainment industries." FilmL.A. reports taht the hardest hit was feature film production, which had been steadily falling over much of the last decade as L.A. lost jobs to Canada and, increasingly, other states such as New Mexico, Louisiana and Michigan that offer tax credits and incentives to filmmakers. The uptick wasn’t enough to keep features from falling 30 percent for the year, however. Feature films accounted for 4,976 permitted production days. The master of ceremonis was Greg Krikorian, executive vice president of Business Life magazine.
Greg Krikorian, Josie Marquez,
Michael Landver at
Economic Recovery Forum.
"Small business firms are the most reliable job creators we have, and they're vital to our overall economic recovery," Krikorian told the audience at Woodbury University, also a sponsor of the event. "This forum gives us an outline of business toolst that are needed to create jobs and help lead our country back toward prosperity. Improving the state of our nation's economy is critical," said Krikorian. Krikorian noted that the uncertainty over the economic impact of added taxes, health care reform, the cost of cap-and-trade and the unfriendly business environment are just a few of the factors causing small business to tighten their budgets and plans to expand. For more about Business Life Magazine visit their site at: www.businesslife.comor their blog at SoCal Business Blog. To learn how to create a buzz for your business visit www.MayoCommunications.com/home.htm
“The economics of the motion picture industry are based on exclusive release windows which allow price differentiation - that is - some earlier transactions take place at higher price points," said Gregory Freeman, vice president of Consulting and Economic Policy for the LAEDC. "Redbox, or any other distributor that weakens the release window model, could reduce overall industry revenues. Lower revenues will likely lead to lower production activity, hurting the 
