The economics of film
Published 12:00 am Tuesday, March 18, 2014
- SHELLEY MIDTHUN
Portland isn’t quite “Hollywood North” yet, but it’s getting closer.
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With “Grimm,” “Portlandia” and other productions routinely shooting here, locals have become accustomed to the sight of supply trucks, lighting rigs, movie and television stars, and the director’s call for “action.”
What’s less obvious to the general public is the impact film and television work has on the local economy.
Vince Porter, executive director of the Governor’s Office of Film and Television, tallied qualified spending on film and TV projects that his office recruits and retains, either with the Oregon Production Investment Fund (OPIF) or the Greenlight Labor Rebate.
“The overall numbers are much bigger, but I can give you some perspective,” said Porter.
In 2012, a record $126.2 million was spent in Oregon — a huge jump from the $49 million spent in 2008. “Leverage” was shot in Portland in 2012, as were “Grimm,” “Portlandia,” “The Real World” and “Wheel of Fortune.” An additional $24.5 million was spent on TV commercials.
In 2013, there was a slight slowdown in film and TV spending to $110.7 million, Porter said, “in part due the delayed effect of an incentive reduction in 2012, but also due to the loss of “Wheel” and “The Real World.” Production of TV commercials remained the same, at $24.5 million.
The incentive increased to $10 million from $6 million annually in October and Porter expects 2014 spending by the film and TV industry to be a new record-breaker. Among other projects, a new TV show by the creator of “Leverage” is under way, with details yet to be announced.
“These are all direct spending numbers,” said Porter. “It doesn’t factor in any indirect economic impact, which tends to double the overall number.”
Shelley Midthun, Film, Television and Digital Media Liason for the City of Portland, said “2013 was another successful year for the production industry in Portland.
“In addition to the positive economic impacts from larger productions such as ‘Grimm’ and ‘Portlandia’ (including jobs for crew and talent, purchasing equipment and supplies from local vendors, and spending in hotels and restaurants), we also noted a 25 percent increase in city permits for different types of film projects.”
Midthun echoes Porter’s bright expectations for 2014, noting that Portland-based animation studio LAIKA is working on its third animated feature, “The BoxTrolls,” a 3-D stop-motion and computer-generated film that’s set for release in September. (for trailer and production shorts, visit laika.com).
GROWING LOCAL TALENT
The years of stepped-up film and television production have
led to more professionals settling here.
A portion of tax credits available through the state were
devoted to Oregon-based companies in the latest legislative session. That includes video game producers, which are coming on strong as a growth category: companies such as Liquid Development, which has worked on “Halo,” “Rock Band” and “Arkham Origins.”
The Oregon Media Production Association has grown to more than 1,000 members, an increase of 29 percent year-over-year for the past two years., said Tom McFadden, executive director. Seventy percent of the members work on advertising, marketing, sales and training viideos, he said. About thirty percent work on film and TV productions.
OMPA publishes sourceoregon.com, a directory of local commercial, film, TV and “new media” companies. Social events bring industry professionals together to network, said McFadden, and workshops on financial management help local companies stay in the black.
Hillsboro-based LAIKA studios, which produced “Coraline” and “ParaNorman” before launching into “Boxtrolls,” attracts world-class animation talent. But when the work dries up, the animators go elsewhere.
LAIKA President and CEO Travis Knight, son of Nike founder and LAIKA investor Phil Knight, has spoken many times of ramping up the production schedule to one feature per year. The studio is expected to reach that level of production by 2015. More than 300 employees work at LAIKA when a film is in full production and many are settling here, purchasing homes and raising families.