Economic Impact of a Proposed US Federal Production Incentive
Client: Motion Picture Association (MPA)
Location: United States
Olsberg·SPI (SPI) was commissioned by the MPA, in support of the work endorsed by the US Film & TV Production Coalition, to undertake an analysis of the economic impact that would be generated by a proposed new US federal production incentive for domestic film and television. The study models the economic impact of introducing a federal incentive in the US that would sit alongside existing state programs, comparing two scenarios over the period 2027 to 2035: one in which a federal incentive is not introduced, and one in which a federal incentive takes effect from 2027. The difference between the two scenarios is the additional impact associated with the incentive.
The study’s economic model is based on an illustrative assumption of the US share of projected global production reaching 65%, informed by historical data and recent budget analysis. The model forecasts production spend from 2027-2035, with the results showing:
A total of $249.1 billion in Gross Value Added (GVA) contribution from 2027 to 2035
An average of 143,500 Full Time Equivalent (FTE) total jobs created and supported annually across the country
A total of $133.1 billion in additional labour income from 2027 to 2035
A total of $125.3 billion in additional production expenditures from 2027 to 2035.
The study was launched on 15th September by MPA Chairman and CEO Charles Rivkin at a virtual press conference. He was joined by Special Ambassador to Hollywood Jon Voight, Rep. Brian Jack (R-GA), Rep. Laura Friedman (D-CA), Directors Guild of America (DGA)’s Thomas Schlamme, International Alliance of Theatrical Stage Employees (IATSE)’s Matt Loeb, Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA)’s Sean Astin, and Teamster’s Sean O’Brien.
Download the full report here.
The report was also covered by Deadline, The Hollywood Reporter, and Variety.
For more information on this study, please contact SPI Consultant Joe Stirling Lee at joe@o-spi.com.
Further information on SPI’s Economic Impact Assessment work can be found here.