Creative Industries US Industry Overview
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Creative Industries US Industry Overview Contents Introduction 2 Team Contacts 3 US Market Checklist 4 Opportunities for UK Companies 5 Sub Sector Information Film & Television 6 Music 10 Video Games 13 Digital Media & Interactive Technologies 15 Design 17 Advertising & Marketing 18 Fine Art & Photography 21 Performing Arts 22 Publishing 23 Where to Learn More 25 Introduction The United States is a large market, full of opportunities for UK companies but it is also complex and highly competitive. With the mission of helping UK companies identify and UK companies interested in any of our services in the pursue new business opportunities, UK Trade & United States should ideally speak first with one of our Investment (UKTI) teams in the United States offer a UK-based International Trade Advisors (ITAs). variety of support to help companies achieve their Financial assistance and grants are not available from international potential, including trade missions, events, UKTI staff in the United States, but UK companies can and webinars, and customised consultancy services speak to ITAs about export support services like the (Overseas Market Introduction Service, OMIS). Tradeshow Access Programme, Passport to Export, Gateway to Global Growth, and the Export Marketing This brochure is intended to provide an overview of Research Scheme. Companies in Scotland, Wales, opportunities in the United States, help companies and Northern Ireland should contact Scottish consider and understand the challenges, and outline Development International, Business Wales, or Invest the steps required to succeed in this market. Northern Ireland, respectively. Cover Photo © Getty Images 2 gov.uk/ukti Last Revision: December 2014 Team Contacts Leading Post: Los Angeles Tim Crouch (Sector lead) Miriam Feygenson (Business Development Associate) Email: [email protected] Email: [email protected] Tel: +1 (310) 843 2944 Tel: +1 (310) 843 2941 Team Contact Names Atlanta / Miami Ian Stewart, Morgan McCutchin, Los Angeles Tim Crouch, Miriam Feygenson Mauritz Plenby, TBC Boston TBC, Joanna Manwell New York Richard Powell, Nicole Diaz, Patricia Bayley, Rob Cauvy Chicago TBC, Emily Roden San Francisco Cindy Fabian, Frank William Houston Haileigh Meyers, Caitlin McGill Washington DC Melinda Goforth, TBC 3 gov.uk/ukti Last Revision: December 2014 U.S. Market Checklist Due to a common language and culture, the United States can seem like a relatively easy market to access. However, it is also a large, crowded, and highly competitive economy. It can be easy to underestimate the requirements of a successful US strategy. Prospective exporters should consider carefully whether they are ready to do business in the United States. The following questions can assist with a critical self-evaluation: 1. Is there a market in the United States for your 7. Do you understand the legal and accounting issues product, service, or content? If so, is the market associated with doing business in the United nascent, growing, or already saturated? These are States? For example, think about whether your key questions to ask and answer before committing sales contracts are appropriate, whether your the required time and expense towards developing intellectual property is protected, whether different your company’s business in the United States. technical standards and data privacy rules exist for your product or service, and whether you are 2. Is your company in a stable financial position and covered in the event of liability claims. Before ready to invest in expanding into new markets? taking any concrete steps in the United States, a Many UK companies underestimate the costs of consultation with a US attorney is usually setting up and time required to effectively succeed advisable. in the United States. It should not be considered a short-term process, and setting realistic 8. Does your company export to or do business in expectations (in terms of time and cost) are any other international markets? It is generally required. easier to begin a company’s overseas exports to markets that are geographically closer and have 3. How much manpower, time and financial resources more experience working with UK companies, such can you commit to your US strategy? as Ireland and other EU countries, before tackling the United States. 4. Have you formulated a market entry strategy? For example, do you want to sell online, via a 9. Do you have the capacity to exploit opportunities distributor, agent, partner, or do you need to set up fully? Can you build on any initial success and a US entity? meet increased customer demand? US businesses will be open to working with a foreign partner but 5. What is your Unique Selling Proposition (USP) for will expect you to meet their customer service the US market? Make sure that this is clear, standards, be present to support any issues, and concise, well-presented and accessible to your may want accessibility to discuss other future potential US customers. opportunities. They do not want to work with foreign companies that are ‘in it for the short term’. 6. Have you developed a compelling sales pitch and marketing materials, including a website, around 10. Have you evaluated the logistics required to export your USP? Have they been developed with a US in the United States? For example, are you audience in mind? UKTI DC have successfully prepared to invoice in US dollars, and have you used a Quad Chart as a means of marketing UK determined how you will receive payments? How companies to US government personnel. will you provide technical support? For physical products, have you identified customs duty rates and whether you will need a freight forwarder? 4 gov.uk/ukti Last Revision: December 2014 Opportunities For UK Companies Sub Sector US New Mid- Atlantic Southeast Mid West Gulf Southern Northern overall England Atlantic Coast (Miami / (Chicago) Coast CA CA / (Boston) (New (Washington Atlanta) (Houston) (Los Pacific York) DC) Angeles) Northwest (San Francisco) Film S W S W W W W S W TV S W S M M W W S W Music S M S W M M M S M Video S M M M W W M S S Games Digital S S M W W M S S S Media Design S W S W W S W M S Advertising S W S W M S W S S Fine Art M M S M W M W M M Performing S M S M W S W M M Arts Publishing S W S W W S W W S Size of Opportunity S = Strong M = Moderate W = Weak 5 gov.uk/ukti Last Revision: December 2014 Sub Sector Information Film & Television Overview The United States, specifically the Los Angeles cluster known as Hollywood, has dominated the world’s film and TV sector for a century, permeating all markets and cultures around the world. India may produce a greater quantity of films, but no market comes close to the US in either profile or gross receipts. Though almost all film productions and many TV productions have migrated away from California to jurisdictions with generous incentive programmes, production and financing decisions are still made in Los Angeles and in New York, where much of the television broadcasting industry is based. Film and television is a huge industry in the United States, Factual programming—often based on formats imported but piracy and changing consumer behaviour have from the UK—is also hugely popular, especially undeniably eaten away at traditional film and TV earnings competition shows and ‘reality’ programming. while production costs for major films and television series have steadily increased. As a result, studios prefer to Not surprisingly given the size and scope of the industry, gamble on proven properties like remakes, sequels, and the United States is a large and congested marketplace, material based on bestselling novels or popular comic full of individuals shopping services, talent, and ideas. UK books. Independent films do not often turn a profit at the talent and creativity enjoy an excellent reputation, but UK box office, and large studios are reluctant to finance them companies should be aware that US decision makers tend unless high-profile talent is attached. Independent to rely on professional intermediaries (e.g., managers and productions must usually look for unconventional sources agents) and personal relationships to restrict access and of financing. On the other hand, the success of series like filter excess demand for their attention. As a matter of Mad Men, Breaking Bad, Game of Thrones, and Downton strict policy, most larger US agencies and production Abbey demonstrate that there is an appetite for companies will not consider direct solicitations. Therefore, sophisticated, intricately scripted content on cable effective networking is critical – perhaps at one of the key television, in particular on networks like HBO and AMC. tradeshows/events, listed in the spreadsheet within this document. Clusters Los Angeles is the motion picture industry’s global headquarters. The leading US film production companies are broken down into two recognised industry categories, “major” studios and “mini-major” studios. All of the six majors and five of the six mini majors are located in Southern California.They are: Major Studio Location Parent Comments The Walt Disney Burbank, CA None Includes ABC Television, ESPN, Pixar, Lucasfilm, Touchstone Company Pictures, Walt Disney Animation Studios, Marvel Studios NBC Universal Universal City, CA Comcast Includes Universal Pictures, NBC Television, Focus Features, Universal Animation Studios, Illumination Entertainment, Working Title Films 6 gov.uk/ukti Last Revision: December 2014 Major Studio Location Parent Comments Paramount Pictures Los Angeles, CA Viacom Includes Paramount Vantage, Insurge Pictures, Nickelodeon Entertainment Movies, MTV Films. No longer owns a TV studio or broadcaster—CBS Studios and CBS Television are now separate companies owned mostly by National Amusements. Sony Pictures Culver City, CA Sony Includes Columbia Pictures, Sony Pictures Classics, Screen Entertainment Corporation Gems, TriStar Pictures, Sony Pictures Animation, Destination Films, Triumph Films, Stage 6 Films, Affirm Films.