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Entertainment & the Media in Los Angeles

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Entertainment & the Media in Los Angeles 2010 Entertainment & the Media in Los Angeles Jack Kyser Nancy Sidhu Ph.D. Kimberly Ritter LAEDC Kyser Center for Economic Research 1/20/2010 Entertainment and the Media In Los Angeles January 2010 Prepared by: Jack Kyser Nancy D. Sidhu, Ph.D. Kimberly Ritter Ferdinando Guerra Los Angeles County Economic Development Corporation Kyser Center for Economic Research 444 S. Flower St., 34 th Floor Los Angeles, CA 90071 Tel: (213) 622-4300 or (888) 4-LAEDC-1 Fax: (213)-622-7100 E-mail: [email protected] Web: http://laedc.org The LAEDC, the region's premier business leadership organization, is a private, non-profit 501(c)3 organizationestablishedin1981. As Southern California’s premier business leadership organization, the mission of the LAEDC is to attract,retain,andgrowbusinessesandjobsfortheregionsofLosAngelesCounty. Since1996,theLAEDChashelpedretainorattractmorethan157,000jobs,providing$7.5billionindirect economicimpactfromsalariesandmorethan$134millionintaxrevenuebenefittolocalgovernmentsand educationinLosAngelesCounty. RegionalLeadership ThemembersoftheLAEDCarecivicleadersandrankingexecutivesoftheregion’sleadingpublicandprivate organizations.Throughfinancialsupportanddirectparticipationinthemission,programs,andpublicpolicy initiatives of the LAEDC, the members are committed to playing a decisive role in shaping the region’s economicfuture. BusinessServices The LAEDC’s Business Development and Assistance Program provides essential services to L .A. County businessesatnocost,includingcoordinatingsitesearches,securingincentivesandpermits,andidentifying traditionalandnontraditionalfinancingincludingindustrialdevelopmentbonds.TheLAEDCalsoworkswith workforcetraining,transportation,andutilityproviders. EconomicInformation Through our public information and for-fee research, the LAEDC provides critical economic analysis to businessdecisionmakers,education,media,andgovernment.Wepublishawidevarietyofindustryfocused and regional analysis, and our Economic Forecast report, produced by the Kyser Center for Economic Research ,hasbeenranked#1bytheWallStreetJournal. EconomicConsulting TheLAEDCconsultingpracticeoffersthoughtful,highlyregardedeconomicandpolicyexpertisetoprivate- andpublic-sectorclients.TheLAEDCtakesaflexibleapproachtoproblemsolving,supplementingitsin- housestaffwhenneededwithoutsidefirmsandconsultants.Dependingonourclients'needs,theLAEDCwill assembleandleadteamsforcomplex,long-termprojects;contributetootherteamsasasubcontractor;oract assoleconsultant. LeveragingourLeadership The LAEDC operates several subsidiary enterprises, including the World Trade Center Association Los Angeles-Long Beach (WTCA LA-LB), which facilitates trade expansion and foreign investment, the California Transportation and Logistics Institute, which enhances the quantity and quality of workforce trainingforthelogisticsindustry,andL .A.PLAN,whichassistsmajorpubliclandownersindevelopingreal estatethroughtheLAEDCnetwork.Inaddition,the LAEDC’sCenterforEconomicDevelopmentpartners with the Southern California Leadership Council to help enable public sector officials, policy makers , and other civic leaders to address and solve public policy issues critical to the region’s economic vitality and qualityoflife. GlobalConnections The World Trade Center Association Los Angeles-Long Beach works to support the development of internationaltradeandbusinessopportunitiesforSouthernCaliforniacompaniesastheleadinginternational tradeassociation,tradeserviceorganizationandtraderesourceinLosAngelesCounty.Italsopromotesthe Los Angeles region as a destination for foreign investment.TheWTCALA-LBisasubsidiaryoftheLos AngelesCountyEconomicDevelopmentCorporation.Formoreinformation,pleasevisit www.wtca-lalb.org ©2010LosAngelesCountyEconomicDevelopmentCorporationwww.laedc.org 444S.FlowerStreet,34thFl.,LosAngeles,CA90071E: [email protected] T:213.622.4300F:213.622.7100 THE HEADLINES The Entertainment and Media Industries in Los Angeles Major Trends Content is king! Owning content is becoming more important versus simply distributing it Consolidation in the entertainment and media industries will continue through 2010 Consumers are insisting on increased mobility; they want to take their content with them Information may want to be free, but media companies are stepping up efforts to charge for access to their services The use of digital media will continue to grow across all demographic groups 2009 was the worst year for the advertising industry in decades – 2010 looks a bit brighter By The Numbers Entertainment and Media Employment in Los Angeles County • In 2008, the entertainment industry cluster employed 141,400 workers – employment grew by +31.3% since 2001 and by +0.4% compared with 2007 • Combined, the media industries (broadcast and cable TV, radio broadcasting, and newspaper and magazine publishing) employed 29,900 workers in 2008 – this represented a total decline of -10.9% since 2001 and a decline of -3.5% compared with 2007 • The advertising industry employed 20,100 people in 2008 – industry employment was up by +2.1% since 2001 and by +2.7 compared with 2007 • Entertainment, media and advertising industry employment, combined, dropped by at least 12,000 jobs (-6.0%) in 2009 In 2009, domestic box office receipts totaled $10.7 billion, a new record level DVD spending (sales and rentals) totaled $21.4 billion in 2009, down from the 2004 peak of $24.9 billion Los Angeles County had a 45% share of total U.S. entertainment employment in 2008 Viewership for L.A’s largest TV stations dropped in 2009 after a strong 2008 Local radio stations generated more than $1 billion in ad revenue in 2008, but ad sales were down by -12% compared with the prior year The Los Angeles Times is the fourth largest newspaper by circulation (657,000 daily) in the country behind the Wall Street Journal , USA Today and the New York Times . Newspapers across the nation are bleeding print readers, ad revenues and employees Table of Contents I. The Entertainment Industry in Los Angeles ............................................................ 1 Introduction ............................................................................................................................. 1 Some Numbers and Some Comment s ............................................................................................ 2 Tracking Film and TV Production in Los Angeles ..................................................................... 3 Employment Trends ................................................................................................................. 4 Overall Economic Impact ......................................................................................................... 7 The Challenges ......................................................................................................................... 7 Some Thoughts about the Future of Filmed Entertainment in Los Angeles ......................... 10 II. Media and Advertising in Los Angeles .......................................................................... 13 Introduction ........................................................................................................................... 13 Broadcast and Cable Television ............................................................................................. 14 Radio Broadcasting ................................................................................................................ 21 Print Publishing ..................................................................................................................... 25 Newspaper Publishing ....................................................................................................... 25 Magazine Publishing .......................................................................................................... 34 Advertising ............................................................................................................................. 40 III. Summing Up ............................................................................................................................. 44 Appendix ........................................................................................................................................... 47 Index of Figures ................................................................................................................................. 58 This report was produced by the LAEDC Kyser Center for Economic Research team: Jack Kyser, Founding Economist Dr. Nancy D. Sidhu, Chief Economist Kimberly Ritter, Associate Economist Ferdinando Guerra, Associate Economist The Entertainment Industry in Los Angeles A high glamour quotient – a major change in the business environment Introduction Entertainment is the best-known industry in of Los Angeles, including Century City and Los Angeles. In fact, many people think of it Culver City. Other pockets of entertainment as the only industry in Los Angeles. It is also activity around the County include Santa very misunderstood. Most see only the Clarita, which has several rental sound stages, glamour, thanks to awards shows on TV and Raleigh Studios in Manhattan Beach, and Los the glossy magazines at supermarket Angeles Center Studios in downtown Los checkout stands. They do not understand Angeles. how the entertainment industry really works nor do they understand the momentous Six major studios produce feature films and challenges it faces. Worse, economic TV series, and
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