Film and TV Production – A Growth Area for Accountants
April 21, 2013 Leave a comment
The growth in the film industry is indisputable.
REVENUE GROWTH – FILM AND TELEVISION
Stats show revenue growth over the past year in both the film and television. The Motion Picture Association of America 2012 stats show the Domestic Revenues have 6% growth from 2011, and 12% growth from 5 years ago. The Global Revenues show 6% growth over 2011.
JOB GROWTH FOR FILM AND TELEVISION INDUSTRY
The MPAA stats show that in 2010 direct industry jobs generated $42.1 billion in wages, and an average salary 32% higher than the national average. Also, there were nearly 282,000 jobs in the core business of producing, marketing, manufacturing, and distributing motion pictures and television shows. These are high quality jobs, with an average salary of nearly $82,000, 74% higher than the average salary nationwide. Those numbers don’t include over 400,000 jobs in related businesses that distribute motion pictures and television shows to consumers. (And … remember that there has been steady growth over 2011 and 2012)
STATE FILM TAX INCENTIVES
Of the 52 States a whopping majority – 42 States – have some form of film tax incentive. (The naysayers are Nevada, Arizona, North and South Dakota, Nebraska, Kansas, Iowa, Delaware and New Hampshire.) After working in the film production business for 28 years, and delivering workshops in 7 States, I can say unequivocally that filmmakers need your help to manage the required reports for Film State Tax Incentives, as well as give audit opinions, agreed upon procedures, etc for the certification of their cost reports.
DIGITAL CAMERAS AND FILM SCHOOLS CREATING MORE FILMMAKERS THAN EVER BEFORE
It has been said for a few years now that the digital camera will revolutionize the film industry. There was a time, say just 4 or 5 years ago, when it was only possible to make films with very expensive 35 mm cameras that were bulky, required tons of lighting, dolly tracks, etc. Those days are still with us on the big time film productions, but it is swiftly declining as the major means of shooting film and television projects. This new generation of filmmakers need the accountant’s help.
EVEN ACCOUNTING FIRMS ARE PRODUCING THEIR OWN FILMS!
Even Accounting Firms are doing their own filmmaking, witness Withum’s Mob Flash Dance (really up-beat!) and the Center For Audit Quality’s series – my fav is CAQ – The Financial Statement Audit (very cool comic book style). These two YouTube videos have had 53,000 and 72,000 views, respectively.
OPPORTUNITIES FOR PROFESSIONAL ACCOUNTANTS AND BOOKKEEPERS
This all spells opportunity. Take a minute to get an insight into the opportunities available for accountants of every status – watch this video.