ENTERTAINMENT | ISSUE #1 VOLUME #1 1

Source: kcet.org, historycooperative.org

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| Issue #1 VOLUME #1

ENTERTAINMENT IN THIS ISSUE

Stories suggest that if the weather in Flagstaff would have been better, Hollywood would actually be located in Arizona. De Mile stated, “We looked around and said, this doesn’t look like the type of country “The Squaw Man” was laid in, so we got back on the train and came out to California.” The weather of Hollywood was perfect for year-round productions. In addition, Los Angeles at that time was the capital of open-shop, non-union labor. Businesses were able to exploit cheap workers in large numbers. Film historian, Robert Sklar wrote “as the studios moved into feature production and built more elaborate and authentic sets, they needed skilled craft workers— carpenters, electricians, dressmakers and many other specialists,” Land was inexpensive and available: the movie makers built palaces and factories, acquiring land from Lincoln Heights to the San Fernando Valley and from Echo Park to Santa Monica.

After World War I ended, it lead the United States into a cultural boom. It was at this point that “Hollywood” began to designate the entire movie- making machine. Hollywood, was the home of motion pictures in America. According to industry myth, the first movie made in Hollywood was Cecil B. By 1919, “Hollywood” had transformed into the face of American cinema. The 1920’s was when the movie industry began to truly flourish, along with the birth of the “movie star”. Hundreds of movies were made each year. Hollywood alone was considered a cultural icon set apart from the rest of Los Angeles, emphasizing leisure, luxury, and a growing “party scene”. The rebirth of Hollywood during the 1970’s was based on making high-action and youth-oriented pictures, usually featuring new and dazzling special effects technology

. “When filmmakers started shooting in Southern California, they found many

further advantages that kept them there: a variety of geographical locations

within a small radius – mountains, desert, sea – and different architectural styles that could convey a broad range

of settings.”

Why Hollywood? A brief History By: Rosa Peredia

Table of Contents

Why Hollywood………….page 1

Leaving California……….page 2

Where are they going? ...page 3

What can we do about the exit from California? …………….page 4

The problem beyond …..page 5

What California must do to stay competitive? ……………….page 6

“In 1911, the Moving Picture World Trade

magazine boasted that 320 days a year of ideal

motion picture photography weather could be

expected in Southern California.”

Elizabeth Navaroli- Master Editor

Gabriela Saavedra- Editor

Rosa Peredia- Editor

Brandon Collette- Editor

Brendan Curiel- Editor

Fahad Al Suwaidi- Editor

ENTERTAINMENT | ISSUE #1 VOLUME #1 | Issue 1 2

Why are they leaving California? By Gabriela Saavedra

California started as a dream destination for film makers and the entertainment industry. Everyone in the industry wanted to get a feel of the California sun, the beaches, the great weather, the cars, and everything that makes it appealing. At one point in time, California was thriving in the industry, but now, people are looking elsewhere in the entertainment industry. The reason people are going outside of California is that companies have budgets and they want to make the most out of their budgets by stretching that money as far as they can and in California, they just do not think it is going far enough. This does not mean that they do not like California, on the contrary, the film industry loves California, but if it is more convenient for them to go elsewhere, then they will.

“Other states got really smart with their tax credits, California needs to embrace it.”

Ultimately, it is a legislator issue, with the industry bringing in $300 billion of California’s global economy, the entertainment industry wants a tax break and if California wants to keep the industry, they need to implement changes that will satisfy the industry.

In other countries, the entertainment industry has offered tax credits that are literally given to them in cash for them to use in the film making process. When

given the choices between two states, many are deciding to go elsewhere from California because they are offered better incentives.

These other countries and states are hungry and willing to do different things in order to be chosen by an industry. They know that they do not have the same appeal that California does, but they do have tax incentives and that seems to be working to their advantage.

They do not want to miss out on the next big thing. Therefore, other places are trying so hard to get the entertainment to choose them over California.

California is the birthplace of video games and the video game industry is still going in another direction. They need to focus on the community, the needs and wants of the people. There needs to be a way to maintain the tech but also grow it. California needs to find ways to incubate more talent to be able to attract the right people and grow the entertainment industry. The entertainment industry is not just television but also video games, movies, e-games, and other digital pass times. Other states got really smart with their tax credits, California needs to embrace it. California needs to realize what the entertainment industry wants and should look for ways to provide it.

Change needs to be implemented in California to keep the entertainment industry from going

somewhere else. It is not an environmental issue that is making the industry walk in another direction, it is simply the fact that California is not as beneficial to them as other places. California is not offering what these other states and countries are willing to offer and will continue to lose business if they continue in this path. Being a great location is just not enough anymore, there must be tax changes, tech changes, new innovations and the ability to attract the entertainment industry in more ways. This is a continuously growing industry with more people watching movies, television and playing video games, and California should try to keep the entertainment industry from leaving

Source: variety.com

ENTERTAINMENT | ISSUE #1 VOLUME #1 | Issue 1 3

Georgia is a “peach”

for entertainment

By Elizabeth Navaroli

Television and film production is increasing dramatically in Georgia. In 2016, Georgia hosted more feature film than anywhere in the country. Black Panther the nation’s current top grossing movie was filmed in Georgia, with the production company enjoying tax incentives to offset the expenses

In 2008, the state of Georgia began to offer tax incentives for film productions over $500,000. These companies received a 30% tax reduction. The new tax law resulted in new studios and more employment for the workers, who choose not to live and work on the west coast.

Sam Carter, is a prop master and set dresser who choose to stay in his home state. According to Sam,” I have been given opportunities I might have never gotten in L.A. and I have the freedom to make my own films as well.”

Georgia is also heavily involved in television production. Show such as Atlanta on F/X as well as the popular series Stranger Things, are filmed throughout the peach state.

These different film and television productions equal revenue for the state of Georgia. In 2017 there was an impact on the statewide economy of 9.5 billion dollars. According to the Governor, Nathan Deal, “These productions mean new economic opportunities and new investments in local communities.”

Film makers in Georgia are able to take advantage of the shooting in a large city or be able to utilize the short distances to the small towns with rural charm.

Natural locations such as beaches, lakes and wooded areas are conveniently close and within a short drive. The mild climate year round is beneficial in avoiding delays in production due to poor weather conditions

The exodus from California will continue as long as other states are offering tax breaks and easier access to film permits. With production costs soaring budgets need to be trimmed and film locations with less built in costs are advantageous in a sometimes struggling industry.

Investment companies in Georgia are investing in small local film companies, further encouraging production in the area. The funding would also be used to purchase rights to written works by local writers.

Source: patch.com

ENTERTAINMENT | ISSUE #1 VOLUME #1 | Issue 1 4

Loans With many businesses struggling to gather capital, many looks to sell portions of their businesses to investors or take out loans which are hard to acquire for small and upcoming businesses. Which is why if California would expand their current loan programs we could see an increase in GDP and growth throughout California on all levels.

Loan Participation One reason many businesses are reluctant to scale or just start off is the cost of debt being so high. Loan are still highly sought but poorly executed. With programs better set up to reduce the cost of debt for business we expect to see more invest in human capital and businesses alike

Tax Credits Unfortunately, California is also known to be heavily taxed and regulated which can be discouraging to most start-ups and businesses. The provisions have their place and function however the taxes are what mostly effect businesses negatively in terms of cash flow. Therefore, if California expanded their current programs and reduced tax on incoming business and in particular the most competitive industries then businesses would have less to fear when making the move to or when considering leaving California.

California is a state which possess nearly every positive aspect within its borders. One of which is the leverage brought on through being the fifth largest economy in the world.

To manage its own governance and programs, the state is known for high taxes, many regulations throughout business and just not being business friendly. Due to California’s landscape and sheer size the state has not had many problems with marketing themselves as a place for business because people just want to be here.

But with the advent of certain technologies like CGI and the digital ages, industries such as entertainment, no longer need locations in California or at least they can move their main offices and operations.

To become more competitive in the face of these disadvantages is to offer more incentives for these businesses and industries with a high-risk of leaving the state. California places 41

st for business

incentives and only offers 22 incentive programs whereas on average, states in the Northeast offer 44 incentive programs. By offering more programs and bettering the current ones there will be more of a monetary incentive to stay in business here in sunny California.

Many states advertise their business incentives in California such states that do this are New York, Georgia, Utah, and Vermont. This has works great and offers future tax income for the state once these businesses get well-grounded and stable. With new technologies and means to use them, California needs to continue and improve on being attractive for business.

What Can We Do About the Exit? by Brandon Collette

Source: stateincentives.org

ENTERTAINMENT | ISSUE #1 VOLUME #1 | Issue 1 5

The Problem

Beyond

Hollywood’s Film

Industry

By Brendan Curiel

Moore’s Law states that the number of transistors on a microchip double every 18 months. This is interpreted to mean that technology evolves and improves every 18 months. The media entertainment industry is not immune to this rapid information technology growth and change.

Twitch and Virtual Reality are two examples of how the media entertainment is evolving. Twitch is a platform to live stream video games and their respective players. Twitch has grown to be the leading platform for live video games streaming service.

Much like YouTube, Twitch has broadcasting partners that earn money directly from viewers, endorsements, and advertisements. These Twitch partners compete for the most views and endorsements in order to become successful. Twitch has effectively grown the potential of the video games entertainment market. Twitch now holds live competitions, collaborations, and a variety of other video game media. On average, there are 200 million broadcasters in a month and 15 million users visiting on Twitch daily.

Twitch serves as technology-based media entertainment that competes with the film industry that is on a global scale. Anyone with Internet, a web camera, and a game console from

Source: techcrunch.com

Anywhere in the world can connect to Twitch and produce entertainment media for consumers. Twitch has the advantage of global reach, low barrier to entry, and a large targeted gaming market.

Another competitor to the Hollywood film industry is the virtual reality industry. Virtual reality technology has recently gained momentum with consumers. Virtual reality is using an electronic display “googles” and sometimes video game controllers to play video games. Virtual reality consoles and games are relatively inexpensive for gamers and non-gamers alike. Virtual reality offers a more immersive and physical experience for consumers.

The applications of virtual reality is uncertain and multifaceted. It can apply to the film, gaming, and future application, such as education. As of now, virtual reality is primarily used in video games. However, IBM and various information technology companies are

researching the possibilities of using virtual reality in advertisement, virtual reality communities, and sports.

Esports are gaming tournaments held all around the world. Much like the beginning of the Internet, virtual reality has many unexplored applications for entertainment and business.

The overarching theme of entertainment beyond the Hollywood film industry is information technology. Twitch and virtual reality technology are only two examples of recent newcomers to the entertainment industry that have rapidly grown to large, profitable industries.

Information technology greatly influences and competes with the Hollywood film industry. More importantly, information technology changes every 18 months. This means the future of media entertainment is uncertain, but the source and skills of information technology are required. The Hollywood film industry must greatly improve its capacity to adopt technology and perhaps even become a leader in information technology.

ENTERTAINMENT | ISSUE #1 VOLUME #1 | Issue 1 6

What California Must Do to Remain

Competitive in Entertainment?

By Fahad AlSuwaidi

Entertainment and innovative technology all

things considered produce $300 billion as

mainstays of California's worldwide economy

(Klowden, Hamilton and Keough 1). Be that

as it may, an advanced move is in progress.

Entertainment now involves TV, films and

music as well as gaming, e-sports, and other

advanced diversions that draw in capital and

venture from tech center points, world-class

college labs and, without a doubt,

Hollywood. However, many changes have

occurred over the years that begs the

question of what would California be able to

do to stay focused with different states and

nations.

California's fortress on media industry is

slackening as production occupations are

attracted to different areas because of

generation credits and other tax cuts. In the

vicinity of 2004 and 2012, the state lost in

excess of 17,000 occupations

In recorded generation work - an in excess of

10 percent drop (Klowden, Hamilton and

Keough 1). In the interim, New York,

California’s primary adversary, included in

excess of 10,000 such employments. These

occupations add to state incomes and give

economical wages that outcome in huge

neighborhood spending. In California,

they are lucrative white collar class

positions that compensation more than

$96,000 by and large (Lowden,

Hamilton and Keough 1). California

should use its key favorable

circumstances, in particular filling in as

the home office of most studios,

wholesalers and makers, its part as

home to the biggest grouping of

diversion ability in North America, and

its solid existing foundation.

Most importantly enhancing California’s

impetus program, in view of what is

working somewhere else.

Recommendations incorporate raising

the aggregate sum of assets accessible

to a level that takes into consideration

taking out the present lottery

framework (Biederman 826). The state

ought to likewise grant credits on a

moving premise consistently, rather

than just at one direct tied toward the

state's financial date-book. California

likewise needs to guarantee a smooth

assessment process and catch more

hour-long TV shows, which make the

most occupations.

Easy Come, Easy go?

Although film incentives have been instrumental in attracting production away from California and creating jobs in other states. Many economists wonder whether employment gains are likely to be permanent in countries that lack strong media, such as those in New York and California. Proponents of movie subsidies claim that in a timely manner, States will gain firmness base of skilled and experienced workers. However, we feel that this is not highly unlikely because of the project-based nature. The entertainment industry and fierce competition among countries are to attract production.

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Source: milkeninstitute.org