film in montana · 2020-07-21 · sizing the industry. economic and fiscal impact of the mt film...

Film in MontanaT h e Ec o n o m i c I m p a c t o f t h e F i l m P ro d u c t i o n I n d u s t r y

i n M o n t a n a a n d t h e M E D I A A c t

December 2, 2019

E c o n o m i c s | S t r a t e g y | I n s i g h t

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Report Overview

Report Scope• Time Period: January 2019- June 2020

• Categories of Analysis: Productions Filmed with Tax Credit Application, Productions Not Yet Film with Tax Credit Application, All Other Montana Productions

• Broader Impacts: Capital Investment, Creative Talent Attraction, Tourism and Media Impressions

Methodology

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Report Overview

• Data collection included actual spend estimates from productions, interviews with producers and industry leaders, and evaluation of industry average spending profiles based on production type and duration.

• ESI used IMPLAN, an industry-standard input-output model, to evaluate economic impact:• Indirect effect: Some proportion of that expenditure goes to the purchase of goods and services from local vendors. Local

purchases of goods and services support local vendors, who in turn require additional purchasing with their own set of vendors. Example: A production company needs to purchase goods and services from other businesses, such as catering.

• Induced effect: Some proportion of the expenditure that goes to labor income gets circulated back into an economy when those employees spend some of their earnings on various goods and services. Some of those goods and services will be purchased from local vendors, further stimulating a local economy. Example: The production company’s employees spend the income they earn on housing, groceries, utilities, etc.

• The total economic impact of Montana film activity is the sum of its own direct economic footprint, plus the indirect and induced effects generated by that direct footprint.

• ESI developed a customized fiscal model to measure income and business tax impact.

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Sizing the Industry

Economic and Fiscal Impact of the MT Film Industry

• Over the past decade, there has been an average of 80 productions in Montana each year

• Revenue from these productions is estimated to be between $3 and $8 million annually

• Film industry in Montana supported over 850 direct jobs and generated nearly $40 million in wages in 2017

• Contributed over $61 million to the State’s GDP (<1%)

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Sizing the Industry


Production TypeNumber of

ProductionsProduction

SpendEstimated Tax

Credit

Other MT Productions – Have Filmed 112 $17.7 --

Certified Productions – Have Filmed 5 $6.2 $1.8

Certified Productions – Have Not Filmed 5 $13.4 $4.4

• 122 total productions evaluated

• Ten productions were certified to participate in the MEDIA Act Tax Credit program (5 filmed; 5 did not)

• 31 counties were home to a production, or about 55 percent of all counties in the state

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Economic Impact Key Results


Other Productions – Have Filmed

Certified–Have Filmed

All Productions That Have Filmed

Certified – Have Not Filmed

Direct Output ($M) $17.7 $6.2 $23.9 $13.4Indirect and Induced Output ($M) $18.1 $5.7 $23.8 $12.6Total Impact ($M) $35.8 $11.9 $47.6 $25.9Direct Jobs Supported (FTE) 75 25 100 55Indirect and Induced Jobs Supported (FTE) 135 45 180 95Earnings ($M) $13.7 $3.8 $17.6 $8.7Tax Revenue Impact ($M) $1.0 $0.3 $1.3 $0.7

• In aggregate, productions that have filmed generate a total economic impact of $47.6 million, supporting 280 FTE jobs with $17.6 million in employee compensation

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Local Economic Impact


Even one day of shooting can have a significant impact. For example, during a one-day commercial shoot in Park County, MT the crew employed a local caterer as part of their craft services offering. The order for this one-day production accounted for approximately three weeks of industry average revenue for the family-run, small business. This exemplifies how procurement activity can have significant impacts on the local economy.

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Capital Investments

Broader Impacts of Film Production in the State

• Capital infrastructure investment supports a growing and sustainable regional film production industry

• There has been a recent expansion of production studios in Montana, such as the Yellowstone Film Ranch (YFR) and the Montana Studios Butte complex

• The $3 million capital investment of the YFR is estimated to have supported 35 FTE jobs, generated $1.4 million in employee compensation, and had a $5.1 million in economic impact for the State of Montana.

“Never in a million years would we have built Yellowstone Film Ranch without the MEDIA Act. We didn’t start building until the Act was approved.”

-Richard Gray, Montana-based producer

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Talent Attraction


• Cultural capital generated through arts and culture enhances Montana’s regional and national image

• Film production can diversify and expand the economic base of Montana

The Economic and Community Impact of The Franklin Institute10

Film-Induced Tourism


• Screened productions can help elevate the visibility of a region, which increases tourism

• Productions have wide socioeconomic appeal, potentially broadening the base of the visitor market

film in montana · 2020-07-21 · sizing the industry. economic and fiscal impact of the mt film...

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